Winter 2010 - AHLA · member survey. The Board of Directors relies on your feedback to direct the association. Please take a few minutes to tell us how we are doing, and how we can

albertahospitality

• Dr iv ing Demand• Off-S i te Cater ing• Purchasing Power

The Official Magazine of the Alberta Hotel and Lodging Association

PM

4002

6059

calculating your carbon footprint

Winter 2010

CALCULATING YOUR CARBON FOOTPRINTHow Do You Measure Up?Trouble is brewing on planet Earth. Our fragile domain has been neglected and abused for centuries, and now it’s payback time.

4 Chairman’s Report4 Calendar of Events5 President & CEO’s Message9 Human Resources15 Travel Alberta21 MemberValueProgramProfile28 Roundtable30 Names in the News

in every issue

albertahospitality

this issue10

6 Driving Demand

14 The Intern, Your Secret Weapon

16 Fort McMurray Hotel and Lodging Association

18 Off-Site Catering

22 Purchasing Power

26 Should I Buy a New PC?

29 AHLA’s New Building

After two years of planning and preparation, the AHLA has moved its operations to our new building. From the initial design to final finishing stages, the Building Committee has been focused on building an office that will bring value to AHLA members. When your Board of Directors first decided to construct a new building for the AHLA, construction costs were through the roof. If there is a silver lining in the cloud passing over Alberta’s economy, it is that construction of our new office took place during a time when contractors and trades were looking for business. I’m very pleased to report that the project was completed on time and on budget.

The new building will deliver savings to the AHLA in rent, parking, and meeting costs, and gives us control over our overhead. We will also have room to expand our operations to meet the future needs of our growing association. We believe this building will be a legacy that benefits AHLA members long into the future.

Many people have been instrumental in the realization of this project. We are particularly pleased to recognize the late Brian Elko, who served on the AHLA’s Board of Directors from 1992 - 2005, for his vision and tireless commitment to the AHLA having control of its destiny by owning its own office.

If you were not able to join us for the grand opening of the building, please stop by the AHLA’s new office anytime for a tour.

This month, the AHLA is conducting our fifth member survey. The Board of Directors relies on your feedback to direct the association. Please take a few minutes to tell us how we are doing, and how we can serve you better.

In just 8 weeks, AHLA members will cast their ballots for the 2010 - 2011 Board of Directors. Our board members consistently state that the AHLA’s board is one of the most productive and effective on which they serve. If you are interested on serving on the board, please contact Lina Venchiarutti, Governance Committee Chair and owner of Becker’s Chalets, to find out more. I encourage you to talk to the individuals who are running for election and find out their views on the future of the industry and the AHLA.

Results of the elections will be announced at the AHLA’s Annual General Meeting, which will be held at the Fairmont Jasper Park Lodge on Sunday, April 18. This event will kick off the AHLA’s 90th Annual Convention & Trade Show. We look forward to seeing you there!

CHAIRMAN’S REPORT

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CHAIR OF THE BOARDDoug Shandro

FIRST VICE CHAIRMike Shymka

VICE CHAIRPerry Wilford

VICE CHAIRBarry Zwueste

PAST CHAIRLina Venchiarutti

PRESIDENT & CEODave Kaiser, CHA

DIRECTORS NORTHBlair Christianson Steven Watters

DIRECTORS CENTRALThomasBarknowitz

Perry BatkeJoAnn Kirkland

Tina Tobin

DIRECTORS SOUTHBarbara KosterskiMichael Sieger

DIRECTOR, CAMPGROUNDSAdam Ledwon

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INSPIRING SERVICE, GROWING VALUE

CALENDAR OF EVENTS

••5th Annual Tourism Online Marketing Conference January 25, 2010 - January 27, 2010 Delta Centre-Ville, Montreal www.onlinerevealed.com

••Travel Alberta - Growing Rural Tourism Conference April 12, 2010 - April 14, 2010 Camrose Regional Exhibition, Camrose www.GrowingRuralTourism.ca.

••AHLA 2010 Convention & Trade Show April 18, 2010 - April 20, 2010 The Fairmont Jasper Park Lodge, Jasper www.ahla.ca

••2010 Housekeeping Awards Gala April 19, 2010 Fairmont Jasper Park Lodge, Jasper www.ahla.ca

Visit www.ahla.ca/ecal for a complete listing of upcoming events.

alberta hospitality | 5

As I write this, we have just finished 13 meetings with our members across Alberta. Although we receive weekly and monthly reporting from lodging industry consultants who gather data on our industry as well as monthly economic updates from the provincial government, there is no substitute for the ground level information we receive from our members. What we learned this year is that there is general consensus among members about the economic health of our industry and they are in agreement about their most pressing concerns.

AHLA members in almost every area of the province report that business is down 10 - 20%. Properties that depend on natural gas drilling activity in the north and in other rural areas of the province report even worse results. Operators in the national parks have seen lower occupancies as a result of the serious decline in US and international visitors as well as downward pressure on room rates as they have been forced to shift their marketing focus to “staycations” for Albertans. In general, operators in Edmonton and Calgary have fared better than most other areas of the province.

Despite the economic downturn and corresponding rise in unemployment, many AHLA members are still challenged to recruit qualified staff. This problem is exacerbated with the increased difficulty to obtain positive Labour Market Opinions (LMOs) for temporary foreign workers (TFWs) as a result of a higher provincial unemployment rate. At many properties,

PRESIDENT & CEO’S MESSAGE

TFWs now make up the core staff in housekeeping and food & beverage departments. The potential loss of these workers is a looming crisis that will impact our industry’s ability to serve our guests.

The AHLA is working hard to help our members in these difficult economic times. At our member meetings we highlighted Member Value Programs that have delivered over $17 million in savings on insurance, natural gas, electrical energy, and telecommunications. We provided information on the critical factors that will impact anyone who needs power for their business - factors that we are considering as we develop our next power program. We asked our members for their TFW success stories so that we can effectively advocate for continued accessibility and sustainability of TFW programs. We also highlighted opportunities for our members to market their properties through our StayGreen Alberta initiatives and to generate online direct bookings through www.travelalberta.com.

I am impressed by the resilience of our members in these challenging times. Most members remain confident that business will improve, if not in 2010, then surely in 2011. This enduring optimism inspires me and motivates our entire team at the AHLA as we strive to “support our members and strengthen Alberta’s tourism and hospitality industry.”

We look forward to serving you!

AHLA Values Face-to-Face Communication with Members by Dave Kaiser

6 | alberta hospitality

FEATURE

In a challenged economy, everybody’s scrambling for revenue and competing to sell rooms to a finite number of travellers. You want to make sure you’re driving demand in the right direction - straight toward your reservation desk.

by Alex Van Tol

DRIVING DEMANDGoing Beyond Traditional Marketing to Draw the Crowds


photo courtesy of Travel Alberta


DRIVING DEMAND

romotions, loyalty programs, and traditional print and media advertising are classic methods of reeling people in, but in an increasingly digitized world, the migration toward electronic

media can’t be ignored. “It’s changing all the time,” says Sherry Baumgardner, Director of Marketing for Coast Hotels and Resorts. “Everyone’s going to make some mistakes trying different things,” she says. “It’s fun. But you have to know your customers.”

Know your customers, and know your capabilities too. Scott Allison, Vice-President of Sales and Marketing for Marriott, says the company cautions its hotels to look before leaping. “If you choose to open up networks through blogging or Facebook or LinkedIn, you’re opening yourself up to a big commitment. You have to be current, and you have to be responsive.” Social networking sites can quickly become overwhelming to maintain, and all that typing takes hotel staff away from the jobs that they’re actually being paid to do. “Do only those things that you think are adding value,” emphasizes Allison.

While social networking might be a busymaking can of worms, the Internet offers myriad other ways for you to get your name out there - and get heads on beds. “We understand where we’ll get the biggest bang for our buck,” explains Mandy Farmer, President and CEO of Accent Inns. “We’re focusing on TripAdvisor, and trying to direct more of our customers to put their responses on there and get our rankings up.” Accent Inns gets pretty good customer reviews, and Farmer wants to keep a good thing going. “It’s a good sales tool,” she notes. “More people are using online reviews to determine where they want to stay.”

In an era where guests Twitter their dissatisfaction about a hotel room instead of bothering to notify the concierge, smart hoteliers know to pay attention to online reviews. A bad review “goes through the Internet like a hot knife through butter,” describes Allison. Regardless of where or what kind of hotel you are, your reputation is out there - and it’s going

to be talked about online. “If you want to do well, you’ve got to look after your reputation, have a good product, and give good service,” says Baumgardner. “Because if you don’t, it’s out there so fast.”

New technology lets hoteliers track the buying trends of their customers, recognize them when they return, and provide useful tips on how to enhance their stay. Centralized reservations systems (CRSs) are a mainstay for all major chains, helping to make a guest’s experience seamless, from the online booking process to phone reservations to the front desk. It’s difficult to track phoned-in bookings; CRSs allow hotels to track the money that’s flowing in much more carefully. “It’s our biggest channel,” says Troy Rutman, Director of External Communications for Best Western International. “Ten years ago hotel websites were basically just an electronic brochure, and now they’re the most significant booking channel.”

Website functionality is important too. “We spend a lot of time on making sure our site is optimized so it’s easy for people to find things,” says Allison. “Pictures are incredibly important for guests on our site.” He adds that Marriott does about $6B in sales annually through its website. “That’s more than Dell computers, which is viewed as a direct-sales powerhouse.”

Giving the customer more flexibility in terms of booking their trips has paid off for a number of companies. Hilton and Marriott have both introduced small group booking functionality on their websites, which allows guests to electronically book groups of rooms for small functions, without having to place a call to reservations or the sales department. “It does make it easier for customers to book,” explains Allison, “and it helps grow overall sales.”

Search engine optimization is essential if you want to compete in the digital marketplace. “You want to be on the first screen when you do a search,” says Vito Curalli, Director of National Sales for Hilton Canada.

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DRIVING DEMAND

However, in the next breath, he notes the very nature of those screens is changing. “How small are those screens?” he asks. The meteoric rise of BlackBerries, iPhones and other web-enabled devices means not everybody is sitting in front of a computer screen when they’re punching in their search terms. “The customer is moving away from the websites and toward the smartphones,” says Curalli. “They’re still purchasing electronically, but they’re looking at a different screen.” Hilton’s solution? A new suite of iPhone apps to connect guests with Hilton’s seven brands worldwide. “Our customers don’t want to use a browser,” says Curalli. “They want to touch that app, be on the brand, and have it take them to the site.”

The final piece of the puzzle in driving demand in the digital age are third-party sites and online travel agencies (OTRs) like Expedia, TravelZoo, Priceline, and others. “We work with third-party suppliers because we recognize we don’t want to give our franchisees any lack of competitive advantage,” suggests Gopal Rao, InterContinental Hotels Group’s Regional Vice-President for Sales and Marketing, Canada. Amy Simon, Starwood Hotels and Resorts’ Director of Field Marketing for Canada, explains that Starwood has seen great success when highlighting special limited-time offers through third-party distributors. Some chains don’t sign global agreements, but instead encourage their members to use third-party suppliers as they see fit. “We’re in negotiations with the online travel agencies all the time,” says Rutman, searching for that perfect deal that will satisfy all Best Western members.

Most hotels participate in third-party travel sites to some degree. It’s best to do so under the following caveats: (1) stay on top of how your property uses the tools; (2) ensure you can honour the lowest rate your customers may find for your hotel across all the OTRs; and (3) remember that what’s useful to one property may not be useful to yours. Whereas Hilton might make rock-bottom sales at the last minute on Priceline, that kind

“... if you’re not quite ready to embrace the wonders of technology, don’t worry. Through all the electronic buzz, there’s still room for good old-fashioned flesh-and-blood travel agents.”{

of opaque site won’t work for Accent Inns’ price point, which doesn’t have as much RevPAR wiggle room. In addition, certain sites work for certain purposes. TravelZoo, for instance, is geared more to the leisure customer. It takes your hotel’s amazing deal and targets a motivated-to-travel audience during those slow weeks where you don’t have any group business. “We’ve done it a couple of times in different locations and it worked very well,” says Baumgardner.

If you’re not quite ready to embrace the wonders of technology, don’t worry. Through all the electronic buzz, there’s still room for good old-fashioned, flesh-and-blood reservations and travel agents. Despite their lack of buttons, links, and sexy graphics, humans are still the best sellers around. “One thing you may not get as a customer online… is the dialogue back and forth,” describes Curalli. “People will implicitly trust a discussion.” Like the waiter who upsells a glass of wine to complement your mussels, or the reservations agent who books rooms for the next three cities you travel to, the human touch still sells better than any widget ever could.


Who Tells Your Staff What They Need to Hear?

Few topics are more important to employees than compensation, but employers are often too busy to take the time to communicate their compensation policies and practices. If you’re not convinced that it’s worth your while to communicate to staff about their compensation, take a look at your operating costs. How much is allocated to labour - 20 to 30%? Isn’t this financial commitment reason enough? The economy is forcing everyone to use their dollars wisely and maximize return on investment. Why not start internally - show your employees the value of their total compensation package, and you may be surprised with the sudden return on investment!

Compensation can be a powerful motivator - or an equally powerful demotivator - depending on how it is used and communicated. Unfortunately, the knowledge and understanding of compensation is too often quietly kept in the payroll department or at the executive level. If a large part of your property’s operating budget is going to be spent on labour, make sure you are using these dollars effectively by communicating the value of your property’s compensation structure.

Give the Message a Messenger

If you, as the employer, can answer “yes” to the two questions below, congratulations! You have given the message a messenger:

1. Do those who have a role to play in operating the compensation system understand their roles?

2. Do all staff who are subject to the compensation system understand it?

If you have all the policy manuals and bulletin boards filled with information for employees, but the compensation offered is still not being valued, you have fallen into a common pitfall: the message is in place but no one is delivering it. Outline responsibilities and accountabilities - it doesn’t all fall in the hands of the Human Resources Department.

Department Heads

Your department heads should have the responsibility and authority to determine the individual salary rates for employees in their area, and decide if a salary adjustment is warranted. They should be accountable for ensuring:

Communicating Total CompensationHUMAN RESOURCES

by Jill Little

• appointment and anniversary dates are tracked for salary adjustment purposes;

• a performance review is completed prior to processing a salary adjustment;

• internal salary equity is maintained when implementing salary assignments to new or existing employees;

• salary assignments are monitored to ensure that no pattern of systemic discrimination emerges;

• the necessary funds are available within the department before a salary assignment or adjustment is made; and

• payroll and/or Human Resources is provided with salary information.

Human Resources

The head of the HR department should have the responsibility and authority to recommend general salary increases for employees, approve exceptions to the salary policies, and review and approve any salaries established above the maximum job rate.

Whether you have a payroll clerk or an HR department, these people should be accountable for ensuring that the application of the salary administration policy is monitored, and that departments are provided with reporting requirements for salary information (CCH Ultimate HR Manual - Western Edition).

The next step is to look at what you have in place and find out what changes, if any, are needed to the compensation package. If your employees can answer “yes” to the following questions, you are on your way to becoming an Employer of Choice.

Total Compensation Checklist

Has your property ensured consistency between departments in evaluation of jobs, assignment of grades or scores, advancement within the system, performance evaluation, compensation levels, raises, bonuses, commissions, and training? Is your property open with staff about compensation? Does your property regularly post job openings and salary ranges within its workforce? Is your property able to quantify the benefits of its compensation systems, such as employee morale, the breadth and depth of the applicant pool, and the quality of hiring decisions, among others?

If you answered “no” to any of the above questions, the AHLA’s Human Resource Development Team can help!

Remember, employees’ satisfaction with their compensation is directly related to their understanding of how they are compensated. Be sure you have the right people delivering the right message to the right audience.

YES NO


COVER STORY

Trouble is brewing on planet Earth. Our fragile domain has been neglected and abused for centuries, and now it’s payback time.

by Debbie Minke

CALCULATING YOUR CARBON FOOTPRINTHow Do You Measure Up?



CALCULATING YOUR CARBON FOOTPRINT

scalating emissions of harmful greenhouse gases (GHG) have created climate change that is touching the lives of all Earth’s inhabitants, and even threatening their existence. The need for

action has never been more urgent. Sustainability needs to become a top priority of governments, businesses, and individuals. What part does the hospitality industry play in climate change, and how can we mitigate the negative effects our businesses have on the environment? You need to know what your carbon footprint is, and how to erase it.

According to recent reports, the accommodations sector is the second largest source of carbon emissions and represents a unique set of challenges and opportunities. The heating and cooling of North America’s buildings, including hotels and resorts, comprises as much as 40% of the continent’s GHG emissions. In Alberta, the average 150-room hotel contributes 6 tonnes of GHG - double the national average - to our global environment every day! That’s equivalent to driving 440 cars, heating and lighting 312 homes, or taking 11,000 airplane flights. Reducing energy consumption will not only benefit the environment, it will benefit your bottom line.

A carbon footprint is a measure of the impact our day-to-day activities have on the environment, and in particular, climate change. It relates to the amount of GHG we produce through burning fossil fuels for electricity, heating, transportation, etc. as well as indirect emissions from products or services and human activities. Individuals, communities, businesses, or static entities like buildings have carbon footprints, commonly expressed in carbon dioxide equivalent (CO2e) tonnes. The goal of becoming carbon neutral involves reduction of consumption and conservation in tandem with the purchase of carbon offsets to mitigate one’s carbon impact.

Needless to say, the prospect of crunching numbers with complex formulas to come up with your CO2e figure is daunting. Is there a way for

a hotel to calculate their carbon footprint on its own? The International Standards Organization (ISO) is a network of national institutes of 162 countries, and it is the world’s largest developer and publisher of international standards for business, government, and society. The ISO’s environmental management standards include ISO 14064 and ISO 14065 for GHG accounting, verification, and emissions trading.

This methodology has been further developed by several organizations, which offer Canadian businesses advisory services and training to build the skills required to measure, monitor, and manage their carbon footprint. With the assistance of the CSA Standards Climate Division, LivClean has developed a specialized carbon calculator for the accommodations industry. The AHLA has partnered with LivClean to offer the LivClean Eco-Stay Program as one of its Member Value Programs. This program makes it easy for hoteliers to get started, providing a hotel-specific carbon calculator, and a review of current consumption. Recommendations are made for measurement, improvement, and goals. Marketing materials are supplied to inform guests of the property’s participation in the program, and the real impact the program is having on the environment in terms that the guest can understand. Thousands of dollars can be generated to support your green initiatives, and certified Canadian carbon offset projects are offered, enabling you to totally erase your carbon footprint.

Why Bother?

The concern for the future of our planet has prompted governments around the world to require companies to report activities that compromise our environment. Preparing now for inevitable emission cap requirements in Alberta demonstrates foresight and wisdom. In BC, local municipalities have already committed to becoming carbon neutral by 2012, and many businesses have incorporated at least some dimension of sustainability in their operations.

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Perhaps most important is the realization that the public is demanding that environmental stewardship become a top priority for the accommodation industry. Guests have become more discerning, and market research indicates that 70% of Canadians are prepared to fork out a few extra dollars in order to limit climate change. Though a property may not have achieved carbon neutrality yet, having a green program in place with well-documented goals and visible efforts is essential to some travellers, especially the environmentally-conscious younger generations. “Guests are asking more questions these days,” asserts Christina de Vries, Director of Marketing & Communications for LivClean Corporation. “They are rightfully skeptical, and want to be sure that a property’s environmental initiatives are substantiated by qualified third parties.”

“Embracing the goal of becoming carbon neutral was a no-brainer for us,” suggests Ryan Eckert, Assistant General Manager at the High Country Inn, Banff. “We were already environmentally conscious and engaged in many green initiatives. This one extra step fit our value system and goals for the property, and differentiates us from hotels in the area.” Naomi Plausteiner, General Manager of the Best Western Heidelberg and Chinook Motel in Lethbridge, concurs. “Pursuing carbon neutrality provides another layer, another way to further improve our long-existing environmental stewardship initiatives and add value for guests.”

Getting Started

The most important step is deciding to get started. Evaluate your level of commitment, set goals for sustainability, and put your team in place to help measure, monitor, and manage your carbon impact. Your “green team” might include staff involved in operations, property or facility management, transportation, and accounting. You might even consider hiring an environmental /sustainability specialist.

Even before your carbon neutral program has been given the green light, collect important data. Track your electricity and natural gas consumption with accounting methods. Record your waste disposal numbers, considering your contribution to the landfill. Record the mileage of fleet vehicles and their fuel consumption as well as any employee-related travel. (Don’t forget flights to conferences, taxis or car rentals, etc.) Your carbon inventory report should also include transportation of goods to and from your property as well as the indirect emissions generated by the products and services you use. In order to validate all your hard work in measuring your carbon footprint, you can have it published through CSA’s GHG CleanStart™ Registry. Then identify opportunities to improve your footprint and reduce emissions with specific actions.

Carbon Offsets

Once you’ve reduced your emissions as much as you can, then negate what’s left by purchasing carbon offsets from carbon reducing environmental projects. You will then be carbon neutral.


“Embracing the goal of becoming carbon neutral was a no-brainer...”{


Canada Standards Association maintains the national GHG CleanProjects™ Registry to verify the emission reductions/removal of GHG/carbon offset projects. Serialization is provided so that offset purchasers can be sure that the projects they are supporting have been verified and inspected, and claims for CO2e reduction are valid.

Ensure that projects are efficient, and offer additional long-term benefits to the community that undertakes them. They should provide something extra, making a reduction over and above the current level. Choose


projects with emission reductions that are already realized. A tree planted today won’t reach maturity for another 80 years, and the full carbon value will not be realized until then.

As governments, businesses, and individuals, we need to move toward a prosperous, low carbon future. The hospitality industry can lead the way, showing it’s possible to tread lightly while delivering an exceptional guest experience.

According to industry experts, lighting accounts for up to 35% of a hotel’s energy bill, so replacing lighting with low-energy bulbs is a significant first step in reducing energy consumption. Enlist your staff’s help to ensure that unused lights are turned off. Motion-activated lighting can offer savings as well.

Heating, ventilation and air conditioning systems are gluttons when it comes to energy. Reduce usage and improve efficiency by installing sufficient insulation in walls and around pipes. Occupancy-sensing thermostats will ensure that empty rooms are not being heated or cooled unnecessarily. Even a simple thing like closing window coverings during peak temperatures can make a difference. Replace windows with more energy-efficient, tinted glass. Some properties have installed systems whereby a guest’s key needs to be inserted in order to activate lights and the HVAC system in their room.

Geothermal or hybrid heating and cooling systems offer significant energy savings, although the initial investment needed is substantial. In most cases there is a five to seven year wait before the savings really kick in. Of course, with new builds a system is required anyway, so your ROI may come sooner.

Low-flow faucets and showerheads can help properties reduce overall water usage and energy consumption for hot water systems. Low-flow toilets, or even better, dual flush toilets commonly used in Europe, Australia, and Asia, can slash water consumption by 20-80%, depending on the tank size of the model being replaced.

A linen and towel reuse program is a given, and guests have come to expect it. Studies suggest that in one month a 150-room hotel can save over 22,714 litres of water, and 151 litres of detergent. High efficiency washers are now available that incorporate ozone technology to allow for cold water washing. As much as possible, use Energy Star rated appliances in all areas of your operation.

Replace your fleet vehicles with hybrids or other energy efficient cars, and consider using biodiesel. Reduce air travel by teleconferencing and telecommuting.

Source local suppliers for goods and services, and host carbon-neutral conferences and events. Not only can these reduce your footprint, in time they will provide a positive ROI.

In order to reduce your impact on the land fill, recycle as much as possible. There are many ways to reduce waste, including well-planned purchasing, packaging, recycling, and education. Invite guests to participate by stocking each guestroom with recycling bins. If the volume becomes too much for your staff to handle, contract it out.

As a final note, don’t forget to tell guests what you are doing to be environmentally responsible.

Shrinking Your Footprint


THE INTERN: YOUR SECRET WEAPONby Margaret Doyle

So you have hired an intern - now what? You might be feeling you need to promote an air of authority, an “I know this business” aura of benign dictatorship because this is a kid, a newbie, maybe half your age. You might be thinking, I have no idea what to do with someone of this generation as you nervously watch him or her check his or her iPhone and speak in a foreign language called social networking.

These are all natural things to think when a young intern has a placement in your organization. However, I can assure you, your intern is an opportunity for everyone on your team to learn and view your business from a unique perspective that often results in innovate solutions to long-held beliefs that something was broken for good. An intern is the conduit to an entirely new model of communication and business. Utilize the intern’s skills and resourcefulness with social networks to bridge your business strategy to a new and innovative model that includes new technology, new platforms, and new methods of doing what you’ve always done. You have most likely experienced the moment when someone who is leagues younger than you looks at a problem with fresh eyes and comes up with an original way to solve it, and your first thought is: This can’t work, it is way too easy. And then it does work. This is what you can glean from working with an intern, they’ll make mistakes; they’ll push boundaries, and they’ll look at things in an original way you never thought of.

“We bring new ideas to the table and look at things with a fresh new perspective. Also, we are eager to learn. The experience, which the managers have, coupled with our ideas and different perspectives, can bring out better solutions for the hotel, “says Yatan Nazar, an intern who chose to go to a remote mountain resort for the field work portion of her Bachelor of Arts in International Hotel Management degree.

Ali Alzaki, an intern currently working at a Best Western in Whitehorse, thinks that hiring an intern is a win-win for both parties. “Students who pursued a degree in hotel management are less of a gamble for hotels looking to hire. We are more likely to make a career working in hotels than someone who just wants a day job, or even a second job that happens to be at a hotel.”

To make sure that you get the best out of your intern, and your intern gives you his or her best, here are five steps that will increase the chances of success for both host property and student:

1. Design an Internship Program that reflects your company. This doesn’t have to be a long manual, but rather, should be a set of goals that you and your team feel would give the intern a sense of the business you do, the services you sell, and your destination.

2. Give her an orientation tour and create an itinerary for her first week, making sure to include face-to-face time with leaders and your GM. Ensure there is some fun, casual time with staff, be it a BBQ or staff party; it’s a great way for the young intern to break some ice and begin networking early on.

3. Decide what areas you are going to focus the internship on and have those teams prepare a itemized list of duties and goals for the intern’s time in their department.

4. Delegate a warm, outgoing staff member to be a go-to person, a mentor, throughout the intern’s time with the company. This allows for some mentorship from the beginning and could provide opportunities in the future for the young intern.

5. Provide opportunities for the intern to job-shadow and rub shoulders with VIP guests as well as executive management. Could they be invited to a meeting or attend an invite-only event? Seeing success is a powerful motivator for someone starting out in the industry.

The key to a successful internship is being open to the learning opportunities for both you and your intern, like that social media stuff they’re doing. Ask them to share their expertise, encourage their ideas and suggestions, enlist their help in your company’s social media campaign, and benefit from a demographic you might not always have the opportunity to work with directly. Gen Y’ers will challenge you to do things differently, and this is a good thing because they could just be your company’s secret weapon.

Margaret Doyle is the Internship and Industry Relations Coordinator for Royal Roads University and is currently working with future secret weapons in preparation for launch on May 31st when the Bachelor of Arts in International Hotel Management students at Royal Roads University begin their internship placements for 2010.


Travel Alberta has embarked on a new business strategy, designed to grow Alberta’s $6 billion tourism sector by stimulating increased visitation and higher occupancy rates over the next three years. The strategic approach, which has been endorsed by both the Strategic Tourism Marketing Council and Travel Alberta’s Board of Directors, follows a proven and disciplined planning process developed by General Electric and adopted by leading global companies. Seven strategic initiatives will be pursued to reach our goals. The two most relevant to Alberta’s hospitality industry are: Defending and Growing the Business and Stakeholder Engagement.

We know that if we are to help grow tourism expenditures, you need more heads in your beds and your cash registers have to ring more often. After all, Travel Alberta really doesn’t sell anything in a commercial sense. It’s you in industry who make the sales. Travel Alberta’s job is to create the environment and a platform that makes it easy for consumers to find you and buy your product or service. Travel Alberta’s new mission statement says it best: “Grow tourism revenues with compelling invitations to experience Alberta.” That’s the basis of our partnership with you in industry, particularly small businesses that typify Alberta’s tourism industry.

That’s also why our strategic partnership with the Alberta Hotel and Lodging Association (AHLA) is “on strategy” and why we will continue to invest in it. It is a partnership that drives a return on investment, another one of our strategic initiatives.

For some time, Travel Alberta has worked with the AHLA to support, and distribute to consumers worldwide, the official Alberta Accommodation and Campground Guides. Accommodations, after all, are one of the most popular information requests received by vacation planners who contact Travel Alberta.

With the growing popularity of the Internet, TravelAlberta.com has enhanced accommodation information available to consumers by publishing accommodations listings provided by the AHLA.

As Travel Alberta sharpens our focus on Defending and Growing the Business, we are consolidating our presence on the Internet to one website, TravelAlberta.com. We are committed to measuring our performance and demonstrating a return on investment by doing everything possible to convert as many of the five million “lookers” who visit TravelAlberta.com every year to “bookers” at your properties.

The transparency of the web has made it easy for consumers to check and compare hotel rates and features with a click of the mouse. It is more

Defending and Growing the BusinessTRAVEL ALBERTA

important than ever that destination and hospitality marketers provide shoppers with the information they are searching for as well as the ability to purchase online. Renowned tourism researcher and trend-watcher Peter Yesawich recently presented to a Travel Alberta workshop the top four features that consumers are looking for on the web:

1. Ability to check hotel rates2. Easy-to-use booking feature3. Photos4. Destination maps

TravelAlberta.com features good maps and photos of your properties. However, research tells us that we are missing sales opportunities and losing customers who leave our site to look for websites with online booking capabilities. That’s why we are working closely with the hospitality industry, both through the AHLA and Destination Marketing Organizations in the province, to facilitate an online booking capability on TravelAlberta.com that will be operational in the near future.

By linking to an online reservations booking engine, visitors to TravelAlberta.com will be able to check hotel availability and rates across a selected region, or at a specific property, then click through to the property website, and reserve directly with the property.

The booking engine proposed by the AHLA will not require any additional inventory management by participating properties. The process is referred to as “scraping” the inventory and rates from existing property websites. Travel Alberta’s role will simply be that of an “online enabler”.

Click-thru rates averaging 10% at destinations using this technology demonstrate that consumers are looking to book directly with the property, rather than a third party. Hoteliers are attracted to participate because of the additional distribution of their unsold inventory and the fact that they do not have to manage a separate inventory pool. As well, accommodations are dealing directly with their customers, rather than through a third party.

This is just one example of customer-focused innovation you can expect from the new Travel Alberta. In partnership with you, I am confident these are the kinds of initiatives that can and will defend and grow Alberta’s tourism revenues and your business.

Bruce Okabe is Chief Executive Officer of Travel Alberta.

by Bruce Okabe


FORT McMURRAY HOTEL AND LODGING ASSOCIATION From Fractious to Fraternal: How the Oil City’s Industry Pulled Together

PROFILE

When Marcel Berube arrived in Fort McMurray to take the helm of the Quality Inn Hotel and Conference Centre three years ago, he realized something was missing. He was having difficulty finding information about marketshare, which meant he couldn’t get a handle on where his property fit among the other 25 or so hotels in the area. “The hotels weren’t communicating together,” he says. “They weren’t working as a group in terms of making things better.” The sharp surge in demand in 2005 and 2006, and the resultant staffing shortages, had led to area properties fighting over workers. “That creates ill will, because then you start stealing from each other,” explains Berube. And that’s exactly what was happening. Before Fort Mac’s industry players realized what they were doing, they’d unwittingly inflated their pay rates by around 15% in the span of a single year.

Berube knew things had to change. “I felt it was good to start communicating with some general managers,” he describes. He sensed a will among many of the city’s GMs to meet and discuss the issues that they were all dealing with. In 2006, the general managers from a dozen or so properties began getting together for monthly meetings. “There was a willingness to work together,” notes Berube, “but it had fallen to the side for such a long time. It just took someone to say, ‘Hey, why don’t we do this?’” A previous attempt at forming a similar group had collapsed because not all parties were being honest, but this group is committed to working together openly and honestly. “We decided to form an official association to better our strength regarding various municipal or provincial issues we needed to address as a group.” On May 14, 2008, the Fort McMurray Hotel and Lodging Association (FMHLA) was born (www.FMHLA.org).

The FMHLA is currently at work on a major environmental initiative that will benefit Fort McMurray’s commercial sector. Early in 2009, Jean-Marc Guillamot, Area Director for Atlific’s five area properties, proposed that the association move toward funding a full-service recycling facility in the city of Fort McMurray. Despite the presence of voluntary drop-off

by Alex Van Tol, city photos courtesy of Tourism Fort McMurray


facilities for consumers, the city offers no similar program for commercial operators. Guillamot wasn’t happy with the fact that Fort Mac’s waste was being trucked to Edmonton on a nightly basis. He realized it would be to the group’s advantage to set up a commercial program that would reduce the costs of their own recycling while benefiting the larger community. The hotels have been researching funding opportunities to assist in the development, but who would help with technical know-how? “Human capital in Fort McMurray is slim,” says Guillamot, “and I don’t have expertise in that. I needed a partner to help.”

Enter Keyano College. After a few planning sessions and focus groups, they received approved funding to build a plan and start putting timelines and actions in place for the next five years. As with many such initiatives, the original idea of creating a recycling facility has expanded


to include a comprehensive environmental program that will help participating groups evaluate where they are in terms of their carbon footprint, and where they want to be. “I want to go beyond just green and blue boxes,” says Guillamot. He hopes as the project takes shape, it will generate interest and attract fiscal support from all levels of government. “It’s kind of an oxymoron,” he laughs, “to say that Fort Mac is going to be green.” But there it is.

The commitment to environmental stewardship is evident throughout the FMHLA. “All our hotels have joined HAC’s Green Key program,” explains Berube, whose own property holds four green keys, and there are plans to keep greening. “We’re currently looking at working with the StayGreen Program through the AHLA,” says Berube.

It’s a good time for FMHLA member groups to contemplate growth and development - environmental and otherwise. When the economy took a nosedive in late 2008, business in Fort McMurray followed suit in the next quarter. Berube says it was like someone turned off the light overnight. It surprised operators in the resource town. They reasoned they’d be pretty sheltered from the storm; after all, the world still needed oil, but oil production was dragged down into the fiscal dumps along with everything else. “January came and it was softer than the year before. Then February came and no one came back to work… Our hotel group’s occupancies have all dropped significantly, year-over-year,” notes Berube. With business cranking back up and oil sands development contracts being handed out again, things are looking better.


While the corporate sector will remain the FMHLA’s focus, area operators are working hard to build the region’s leisure market. There’s a new level of commitment to working with Fort McMurray Tourism, Travel Alberta, and local tourism providers. “We’re not fooling ourselves that this is a hot spot for leisure,” says Berube, but he notes that it’s a beautiful area with plenty of rich recreational and educational opportunities.

A self-proclaimed positive thinker with dreams of one day owning his own properties, Berube sees the silver lining on the recession’s cloud. Given the sudden availability of time and tradespeople in the area, many operators have seized the opportunity to take a breather after a whirlwind couple of years, and are reinvesting in their properties. “Everyone had to look at their cost structures and adapt to the current business level,” describes Berube. So far, no one has been forced to close any service areas or outlets. In fact, Berube just opened the 24-hour Athabasca Grill in his own property. “We haven’t lost sight of the customer,” he says, speaking on behalf of everyone in the FMHLA. All parties are still committed to providing the best experience they can. “Providing great value,” exclaims the 38-year-old dynamo, “that’s what you’ve got to keep an eye on.”


FEATURE

Off-site catering gives hotels another way to grow their business and develop customers outside the property. Garden parties, barbecues, weddings, galas, corporate events, cocktail parties, bar mitzvahs, and private dinners are examples of affairs that can be catered. It’s a business venture that can easily represent an additional 10% to an establishment’s incremental food and beverage revenues.

by Debbie Elicksen

OFF-SITE CATERINGThe Best Kept Secret in the Hotel Industry?



OFF-SITE CATERING

hile it’s a great way to expand business, not every hotel is doing it. It’s not something that can be done on a whim, as there are logistical challenges involved - such as getting

the food from A to B, licensing, staffing, and equipment. “You commit to setting it up as almost a separate business because there is so much involved to make it happen,” says Erin Dawson, Director of Sales and Marketing for Hotel Arts.

Off-site catering is not necessarily something many hotels will market and advertise due to the amount of the preparation and planning that each event requires. The choice to do an event might depend on whether the cost and revenue makes it worthwhile. For larger events, some hotels might partner with other companies.

As we’re pushed in this economy to do more with less, our 40-hour work weeks have become 60- and 70-hour work weeks. The last thing many of us want to do is go home and cook dinner. It can be cost-prohibitive to eat out at restaurants, so if you have the opportunity to have somebody prepare it for you, this is where hotels can provide another option. “One of the big events we do is ‘Reserve a Bird’, affectionately known as ‘Take-Out Turkey’, which we do normally at Thanksgiving and Christmas,” reports Eric Ashton, Director of Food and Beverage - Canada at The Westin Calgary. “We prepare meals for guests who have been coming to us for up to 15 years now… [getting] their full turkey dinner with all the trimmings.” The advantage is that it frees up people’s time, so they can do what’s important at that time of the year, which is spend time with family and friends, rather than slaving away in a kitchen. And for those who fear

cooking the Christmas dinner for the first time, using the hotel to cater can be done at a reasonable cost, and no pots and pans are required. The Christmas dinners at The Westin are 99% pick-up, but they will deliver by taxi for those who want that option. It’s been a tradition for the hotel although it does require staff to be working on Christmas Day.

Hotel Arts considers one of its off-site catering specialties to be working with unique venues, such as art galleries and museums that don’t provide their own food and beverage for corporate events. “We have just signed an agreement with the Glenbow Museum,” reveals Dawson. “We’re their preferred caterer.” Dawson explains that the hotel also does a number of off-site weddings at these unique locations. Since transportation is a key factor, they own a truck to transport food so that it arrives in the same temperature that it was cooked in back at the hotel.

For smaller events, such as when Hotel Arts auctions off one of their chefs at a charity function, it might require just sending the chef to the venue. “Because it’s so intimate, we don’t need the equipment or the transportation,” confers Dawson.

On the other end of the scale, The Westin does a corporate barbecue for 4,000. The hotel doesn’t have the facilities to hold that type of event in-house, so it partners with a supplier for the physical setup. That might include supplying tables, chairs, tablecloths, skirting, napkins, punch bowls, coffee urns, glassware, silverware, chinaware, and even setting up a dance floor and stage. “For full off-site, you have to jump through a lot of hoops with Alberta Health Services to make sure it’s all to code,” admits Ashton. “We were required to rent a couple of five-ton trucks.

W

AHLA Insurance ProgramHED Insurance and Risk Services, in partnership with the Alberta Hotel & Lodging Association (AHLA), is proud to be the endorsed provider of specialized insurance programs for AHLA members across Alberta. We are here to help you with your insurance needs while providing the right level of coverage.

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Full insurance protection,Long-term rate stability,Potential returns of premium (over $4MM in surplus funds incurred), andLoss prevention and risk management services.

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Immediate premium savings,Long-term rate stability,Point of sale claim submission, and Program flexibility.

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OFF-SITE CATERING

You have to have school busses to transport the serving and culinary team back and forth. We usually start planning anywhere from three to six months in advance. Now that we’ve done it a couple of years, it’s become a lot more efficient.”

The hotel uses a lot of in-house referrals to obtain staff for special events. It asks the people who are currently employed if they have any friends or family members who would be interested in working. It will also utilize people from other departments. For example, if employees have finished their shift in housekeeping, they may work the barbecue that night. The hotel also uses a recruitment agency to find people primarily for the service side. With the extra staff in place, the team uses two-way radios to communicate back and forth.

Ashton likes that these types of events usually bring a huge level of energy to the hotel and his team has developed the confidence to cater events for as many as 8,000. However, not all inns are able to manage such occasions.

Preparation is everything, according to Dawson. “If we’re full, for example, during Christmas season, it’s twice as much work. We have to make sure we’re all communicating. If there is a 700-person dinner happening in the hotel, we may not be able to cater an event for 700 people off-site. If we want to, we have to plan for it. There are times when we’ve hired staff on a nightly basis.”

If you are planning an off-site catering event, the Courtyard Edmonton Marriott’s website www.marriott.com/meetings/meeting-planning-services.mi gives you a step-by-step guide to help you make it more seamless. One of the first steps guests might take is evaluating the cost of catering compared to the cost of having the same group eat at your restaurant. Pre-planning involves knowing the group size, gender mix, ages, special needs, seating arrangements, flexibility of the date, and outline of the activity.

Hotels that do off-site catering notice the benefits in both the short-term and the long-term. “It’s an exposure perspective,” reveals Dawson. “We’re exposing our hotel name, food and beverage, and our culinary expertise to a whole new marketplace. There are new corporate clients who are going to be seeing us, who don’t necessarily know that they’re seeing us until they know we’ve provided the catering.”

Ashton is also involved in Starwood’s Hotels and Resorts’ other properties across Canada and there have been many discussions about using off-site catering as a supplemental source of revenue to keep the business coming in and generating incremental revenue every year. “You need to think outside the box, and sometimes you need to go work outside the box.”

“Pre-planning involves knowing the group size, gender mix, ages, special needs, seating arrangements, flexibility of the date, and outline of the activity.”{


“History is the sum total of things that could have been avoided.”

- Konrad Adenauer

Alberta will be entering its 10th year of offering customers a choice of electricity suppliers. AHLA members who have participated in the association’s electrical energy program have enjoyed stable and very competitive prices during those 10 years.

Not all businesses have been so fortunate. Some locked in prices in early 2001 for 5-year periods or longer and ended up paying substantially higher than actual prices. Essentially these customers paid a very large premium for their stable prices. Others relied on the floating pool price and got a different kind of electrical shock when prices spiked, sometimes exceeding $200/MWh. The AHLA’s current program price is less than $55/MWh.

On the natural gas side, businesses that locked in their gas at $9/GJ or more are not enjoying current prices, which are below $5/GJ!

The AHLA’s current contract expires at the end of 2010. The association has learned from its positive experiences and is now preparing to launch its third power program. The next program will allow members currently on the AHLA’s program to continue, and there will be a lot of room for properties that are not on the existing program to join up.

The AHLA is focused on getting the best value for its members in the next program. Alberta’s electricity market has changed significantly since 2005. Changes include climate change legislation that could have a big impact on power prices. These changes also give members opportunities to save by increasing their energy efficiency.

Electrical EnergyMEMBER VALUE PROGRAM PROFILE

by Larry Charach

So what do you need to know?

Be proactive: determine your options and make decisions. There are many types of power contracts available in today’s market. Although the AHLA has been fortunate to secure 5-year contracts for low priced power, long-term contracts are not always the best value. This has been the case with the natural gas market, where the AHLA and its partner, Gas Alberta Energy, avoided locking members into long-term contracts. The AHLA is assessing a wide variety of options, which are available in the retail market, to ensure members will have access to products that meet their needs. When considering a power contract for your hotel, motel, or campground, remember that an electrical energy retailer’s job is to sell power. The AHLA’s job is to support our members - not power companies - and to provide the information members need to make educated decisions about energy contracts. Electricity is a complex commodity. The AHLA engages expert consultants and legal advice to protect and promote their members’ interests.

Know your business by gathering baseline (historic) consumption data. The AHLA will use information gathered from members’ historical power consumption to develop a power program that meets the load profile and unique needs of hotels, motels, and campgrounds.

The AHLA will contact all members about the electrical energy program in early 2010. For more information on how your property can get on the next contract, contact Lynn Senetchko at 1-888-436-6112 or by email at [email protected].

90th ANNUAL CONVENTION & TRADE SHOWThe FairmonT Jasper park LodgeapriL 18 – 20, 2010


FEATURE

When Franklin P. Jones remarked, “A bargain is something you can’t use at a price you can’t resist,” he seemed to establish the whole raison d’être for the need of expert procurement.

by Chris McBeath

PURCHASING POWERHow to Up the Ante



PURCHASING POWER

he Challenges

Allan Sacks, an independent buyer who has considerable experience within the hotel industry both in operations and as a

consultant, identifies three key influencers in purchasing decision making. “The tough economy has sensitized purchasing priorities,” Sacks remarks. “The first issue is cost and how it relates to value; capital investments must promise a quick and effective return in operational savings without compromising quality. Second is sourcing and maintaining a green supply chain, and third is recognizing how technology has changed the purchasing process - both in what a property needs by way of guest amenities as well as what will streamline its operations.”

Within these intensely cost-focused times, meeting the needs of an ever-more sophisticated traveller is tougher than ever. Add to this consumer demands for earth-friendly products from organic meats to linens, and guest expectations for easy-access techno-savvy amenities, and buying for the diverse needs of the hospitality industry is a complicated affair.

The Buy In

With so many hotels phasing out the role of purchasing managers, department heads are picking up the slack. And although experts in their area, many are flexing the muscles of purchasing power without the tools or background to negotiate good deals.

“Purchasing options are changing dramatically and have become quite specialized,” notes Sacks. “As busy as managers are, can they really afford not to make trade shows a part of their buying education ? Likewise, can hoteliers afford not to review upgrades every few years? Just in the area of technology, 36 months ago, flat screen TVs, iPod docking stations, and Wi-Fi access weren’t the must-haves that they are today.”

Executive housekeepers, in particular, have had to jump to the bat with new styled linens, room amenities, and eco-cleaning products that combine functionality, durability, and earth-wise sustainability on a massive scale. Buying green even extends to the bed itself.

T

Expand your marketshare

targeting buyers in the hospitality

industry

Call 1-800-667-0955 today to increase your sales

PUBLICATIONS

The official publication of the Alliance of Beverage

Licensees BC

The official voice of the BC Hotel Association

The official magazine ofthe Alberta Hotel & Lodging Association

THE PUBLICAN INNFOCUS

ALBERTA HOSPITALITY

See editorial calendar and rates at www.emcmarketing.com


PURCHASING POWER

It’s not enough to know whether a mattress is firm or comfortable, it’s time to ask, “Is it safe?” Because there are no laws about what can be put into a mattress, or how much, many are packed with chemicals and even carcinogens from pesticide-treated cottons, anti-fungicides, and chemical-based fire retardants. Organic mattresses are the rigueur de jour - look for naturally derived ingredients like rubber tree-based latex, soy-enhanced base foam, organic cotton, and sustainable harvested woods. These components are not only healthy, most are hypoallergenic, help keep dust mites, mold, and bacteria at bay, and help regulate body temperature.

Similarly, maintenance departments are under the gun to rationalize infrastructure investments against promises to reduce energy costs across the board, making their input to new laundry components, HVAC systems, kitchen equipment, and IT requirements invaluable.

Even executive chefs have had to step up to the plate. Organic, ocean-wise and local fare has become the norm. Today’s menus not only list calorie counts and fat content beside heart-healthy options, they often list origins which had better be within a local radius - pity the poor kitchen that imports too many items where transportation costs produce a needlessly large carbon footprint.

Before you request a quote, be sure to provide the following details:

• When sizes or measurements are part of your item specifications, indicate maximums, minimums, or approximates. If the item must fit into a given space, indicate the measurements of the available space.

• When weight is an important factor, indicate the acceptable range or minimum/ maximum acceptable weight.

• Clearly define delivery, warranty, and/or training requirements.

• When compatibility with an existing piece of equipment is a factor, describe the equipment, connectors, interfaces, and brand and model of the existing equipment.

• Verify that models are still available before submitting specifications; valuable time is often lost by requesting models that have been discontinued.

• When installation is required, provide details on what is expected of the contractor, including a site visit if appropriate.

• When maintenance issues are involved, define the extent of service, parts, labour, travel, service hours required, number of preventative maintenance inspections, and any other inclusions/exclusions.

• State if upgrade capabilities are desired at the time of purchase, or in the future.

• When the specifications state the desired brand and model number, invite competitive brands by indication “or equal”.

• Avoid using restrictive language such as “vendor must be located within a 20- mile radius”; request “reasonable response time” instead and even clarify what that might be.

• Be careful with the use of the following words: “should” means it is a desired feature, but is not mandatory; “must” means it is mandatory; “and” means it must have both, or multiples; “or” means either is acceptable.

Courtesy of the Department of Purchasing, Louisiana State University

Preparing for a Quote


“Successful buying means knowing your needs, planning accordingly, and purchasing holistically.”

PURCHASING POWER

Connect to Creative Collaborations

All this fuels an already competitive buying environment, which for smaller properties in particular, can feel overwhelming. In the past, their volumes didn’t deserve the same discounts that were given to larger and chain-brand hotels. E-procurement technology, however, has leveled the playing field. Not only does it enable smaller hospitality units access to suppliers all over the world, it also provides many ways to use collective creativity to save money. In short, virtual marketplaces have revolutionized how buyers and suppliers procure products and services. Examples include Foodservice Central (www.foodservicecentral.com) and Amphire (www.amphire.com).

Business to business E-commerce endeavours such as Instill (www.instill.com) for the foodservice industry, and Avendra (www.avendra.com), also use the Internet to streamline selection and procurement applications. Originally formed by ClubCorp USA, Fairmont Hotels & Resorts, Hyatt Hotels, Marriott International, and Six Continents Hotels, Avendra’s focus is on hotel applications.

Partner and Save

Let’s not forget the power of bulk purchasing. As a tried-and-true method for cost savings, programs that pull together purchasing power include everything from natural gas, electrical energy, and to insurance through associations like the AHLA.

For some independents, referral groups and/or co-op buying can work the best. Purchasing duties are either rotated among themselves, or contracted out to a purchasing co-ordinator and/or an electronic co-operative - a group purchasing organization (GPO). These GPOs do not buy or sell products; they negotiate contracts on behalf of restaurants, hotels, management companies, and resorts. Every enrollee in these electronic co-ops might receive a purchasing guide that includes supplier information, plus access to a private e-commerce marketplace or portal to conduct business with approved distributors or suppliers. As more buyers become members of the GPO, purchasing power increases and so do savings. Typically, either buyers pay a participation fee, or the GPO takes a percentage of the savings.

Leasing Solutions

Successful buying means knowing your needs, planning accordingly (anticipation saves money), and purchasing holistically. That is to say: to understand the real cost of an item is to factor in fees for cleaning, maintenance, compatibility to existing products, and more. With due diligence, a bargain will soon reveal its true colours.

Since a partnering supplier should be thinking along these lines too, they can ease purchasing decisions, and design purchases to fit in with cash flow, occupancy levels, and maintenance issues. “With variable cash flows and today’s limited warehouse inventory, leasing is an excellent option,” suggests Bob Duncan, a distributor who represents many leading suppliers from across North America. “There’s a golden rule about capital investments,” he continues. “If it appreciates, buy it; if in depreciates, or the need is short-term, lease it.”

Since leasing agreements can be tailored to specific needs, even small properties can look at affordable upgrades. For example, rather than a 30-room inn renovating ten rooms a year for three years, which can play havoc with guest stays and operational function, a pre-paid annual lease for a contracted period enables all rooms to be done at the same time. “Unlike capital expenditures, leasing offers greater flexibility in terms of cash flow and budgeting, a 100% tax write-off, easy upgrades, and a fair market buy-out according to Revenue Canada regulations, at the end of the term,” Duncan explains.

Another leasing advantage is in staging a property for sale. Provided lease agreements are a condition of sale, a seller can refurbish tired FF&E, and a prospective buyer can purchase a fresh-looking, turn-key operation. Nowhere is this better seen than in the room-in-a-box concept. A favourite choice with new operations, it’s the ultimate in catalogue-to-room shopping, where each room receives its entire ensemble in boxes, from coffee maker to pillow cases. It’s a one-stop solution that not only makes the purchasing process very efficient, but operationally makes delivery and unpacking so uncomplicated, it realizes significant savings in time and money.

Jacki Richards, Chief Operating Officer of Alberta Institute Purchasing Management Association of Canada agrees with her BC counterpart, Geraldine Kennedy, C.P.P who advises, “One of the most important things to remember is that the true cost of an item could be very different to its price. Be sure to clearly determine your needs, see how they fit into the larger picture, and how they might differ from your discretionary requirements. To realize full value you’ll need to understand what you have to offer as a customer other than volume, and what your supplier has to offer beyond price and delivery. Negotiations usually require this kind of clarity. It’s also useful to understand your supply chain and to remember that you, your supplier, and your guests are all part of a supply management cycle.” Both Kennedy and Richards recommend organizations invest in training and have skilled supply chain management professionals on staff or available as consultants.

As the CEO of your hotel operation, effective purchasing power means that you should be able to answer “yes” to the following questions:

• Do you know how much your hotel spends externally?

• Do you know how much is spent in which department, and with which supplier?

• Do you know who your key suppliers are, and how they contribute value to the products provided?

• Do you have a proactive, close relationship with your key suppliers?

• Do you understand the risks inherent in the purchases made, and manage them effectively?

• Do you know whether (and when) it’s best to buy, lease and/or outsource services?

• Do you have appropriately skilled people developing and managing your purchasing strategies?

Sourced from the Chartered Institute of Purchasing & Supply

General Manager Checklist

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SHOULD I BUY A NEW PC? MaintainthehealthofaPCtosqueezeafewdollarsoutofyourITbudget

by Terry L. Price

Take a look at the progression of the PC over the last several years. From 1998 to 2001 the Central Processing Unit (CPU) frequency increased from 486 MHz to 1.1 GHz, nearly tripling in speed over a three year period of time. When Intel introduced the Pentium chip, the result was a frequency increase to 2.1 GHz by 2002 and then to 3.1 GHz by 2003, only taking two years to triple in speed. We could not keep up with the technology. As soon as we purchased a PC, it was outdated and a newer, faster model was released. It was frustrating to make any purchasing decisions. “Should I wait for the next model before I buy?” was rushing through our heads. At that pace, our PCs today would be running at around 80 GHz speed. In reality, the frequency speed of the CPU has made minimal increases since 2003. Instead of making the processors faster, they began putting multiple processors on the same chip. This allows the computer to handle twice (dual-core processors) or four times (quad-core processors) the amount of data at the same time. The data is not going any faster, there’s just more avenues available to process it. An example would be a car driving down a road at 60 mph (CPU speed). If there is only one lane of traffic (single-core processor), it takes longer for all the cars to get to their destination than it would if we had four lanes of traffic (quad-core processor). Logical process would tell us that we need the quad-core processors, but that may not be the case. While I am writing this, I have word processing, presentation software, Internet browser, e-mail, property management system, and my Windows task manager all open at the same time and I am only using 1-2% of my dual-core 2.4 GHz processor. The software we use each day at work does not require very much processing power. I have a two-lane highway, but there are usually only a handful of cars on the road at any given time. That is the case with most of the PCs that are sitting on our desks. Do we need a new PC? I would say probably not.

Taking Care of the Environment

If we are going to keep our PCs longer, we have to consider factors other than just CPU speed and RAM. A PC is a physical piece of equipment that needs TLC in order to keep working at top performance. The issues that keep a PC running at top performance centre on the environment in which the machine is working. The CPU of a computer operates by sending millions of electrical signals across very small wires at very fast speeds. This causes the CPU to heat up to between 125°F to 175°F (50°C to 80°C). This would be the normal range of operation; however, the temperature can get much higher. Running the CPU at higher temperatures will cause the physical degradation of those small wires over time, causing the machine to stop functioning properly. Sources on the Internet say (and if it says it on the Internet, it must be true) that a 10°C increase in the core temperature of a processor will reduce the life of the component by 50%. Likewise, a 10°C decrease in the core temperature of a processor will increase the life of the component by 100%. Moral of the story: cooler is better.

A PC has built-in defenses to help keep the core temperature as cool as possible. The heat sink (the radiator looking thing) is designed to draw the heat away from the processor allowing the fans to blow the heat out. Our job is to assist this process as much as possible. Here are some ways we can help:

Make sure there is adequate space around the computer. There needs to be enough room to allow air to flow freely through the machine. Avoid placing the computer in confined places such as inside a cabinet. Most computers draw air from the front of the machine and blow it out the back. Avoid putting items next to the front or back of a PC such as stacks of papers, post-it notes, stickers, and pictures. Adequate airflow can only be achieved if nothing is blocking the front or back of the machine.

Keep the PC clean. Dust can accumulate very quickly on the inside of a PC making it very difficult to allow proper airflow. You need to open up the machine on a regular basis and blow the dust out of it. Use only the approved, static free, canned air products to do this. Avoid using a vacuum cleaner or a standard air compressor as these tend to generate static electricity. How often you need to clean the PC depends on the location. Some machines need to be cleaned every couple of weeks, and some only every couple of months. If the computer is in a very dusty area, you may consider placing some filter material on the front of the machine to help keep the dust out; however, make sure you clean the filter regularly.

Keep the PC away from a heat source. One of the locations I quite often see a computer placed is under the desk. This is a great location to hide the computer while keeping the top of the desk clean and organized. There is nothing wrong with this location, except when it is combined with a small space heater under the desk. This is causing the computer to attempt to cool itself with heated air. If you need a space heater under your desk to keep your legs warm, place the PC back on top of the desk so it can have cool air to circulate.

There are other factors concerning a PC’s location that can affect the longevity of the equipment.

Temperature. PC manufacturers recommend that a computer be operated in an environment where the temperature is between 60°F and 75°F (15°C to 24°C). If the temperature is too hot, it makes it difficult for the PC to cool itself down. If the temperature is too cold, condensation can build up on the components and cause them to short out.

The core temperature of a CPU increases the more it has to process. The more electrical pulses flying through, the hotter it gets. One practice that elongates the life of the machine is to distribute processes more evenly. Instead of allowing one machine to do several intensive processes, have several machines doing one intensive process each. This will allow all the machines to operate within their normal temperatures and keep them alive longer.

Humidity. The recommended level of humidity to operate computer equipment is between 35 and 65%. Working in a more humid environment can cause condensation to build up. Water and electronics is not usually a good mix. If the working environment is too dry, then static electricity can build up and cause the components to be zapped.

Of course, we do not always have control of all the environmental factors in which we operate. I was recently in Jamaica sitting at the pool bar and it was 85°F and humid, with moisture rising from the pool and sand blowing around. Ask my wife and she would tell you the environment was perfect. Ask the PC on the counter and it would say, “Not liking it so much, mon.” When we have equipment that has to operate in conditions outside of the recommended environment, establish an equipment rotation program. Machines can operate outside of the recommended range for short periods of time without experiencing long-term damage.


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Exchanging a machine from a good environment with a machine from a bad environment will help keep all the machines working longer. How often depends on the severity of the environment. The more extreme the environment, the more often it needs to be exchanged. When exchanging the equipment, or getting a new piece of equipment, it is good practice to allow the machine to acclimate to the surroundings 24 hours before plugging it in and turning it on.

Picking Up Speed

At this point you may be thinking, “Yes, my machine is still running, but it is rrruuunnniiinnnggg toooooo sssslllloooooowwwww!!!!” A PC that has been used a few years may seem to be much slower than when it was originally purchased. Here are some possible fixes.

Random Access Memory (RAM). The software that we are using does not require much processing power. They do, however, have a hunger for RAM. A PC should have at least 2GB of RAM to function properly moving forward. I would suggest 4GB if you are attempting to, or considering attempting to, run Windows Vista.

Uninstall unnecessary software. Machines purchased from manufacturers are delivered with a “bundled software package.” The bundle should have a Glad label on it because they are mostly trash. Open the Add/Remove Programs option in your Control Panel and remove any of the software that you are not using. It is just taking up space on your system and in some cases, loading processes that are using up resources.

Defragment the hard drive. A computer stores its information by using a read/write head to place information on a platter similar to a record on a record player (teenagers ask your parents). When files get written to the drive, there is not always space to store the file all together. The computer then has to store part of the file in one location and the remainder of the file in another and sometimes several different locations. This is called a fragmented file. Imagine the needle of a record player bouncing back and forth if the songs were stored on different parts of the record. The hard drive has to move around to gather all the information it needs. The more fragmented files, the harder it has to work. Running the Disk Defragmenter Utility provided with Windows, reduces the number of fragmented files and allows the system to run faster.

Clean off Spyware. Spyware are small programs that get downloaded

and installed on the computer. They are usually installed through Web browsing. They range from the annoying Internet pop-up to the evasive keyboard loggers that capture your account and password information. These programs get loaded in the background and use the computers resources, causing the computer to start slowing down. Spyware cleanup utilities can be found on the Internet and many are free.

Clean the registry. The registry, for a Windows machine, is the list of instructions that the computer uses to run. As software and hardware are installed and uninstalled, a computer will accumulate instructions that are no longer necessary. A registry cleaning utility analyzes your registry and assists in removing any instructions that are not needed. The reduction of instructions allows the computer to run more efficiently. As a precaution, I would discuss the use of a registry cleaning utility with your software providers.

Disable start-up processes. Software solutions that we install on our computers have small programs that start running every time you turn on your computer. These small programs are designed to allow that particular software to respond quicker. This may be true, but they are also using the resources of the computer and causing the other programs to run slower. You can disable those processes from loading by running the Microsoft Configuration Utility. To run this utility click Start> Run then type MSCONFIG and hit OK. Go to the Startup tab and disable any of the programs that are not needed.

Format the hard drive. Sometimes it’s just best to get a clean start. By formatting the hard drive and re-installing the operating system, you will eliminate all the “garbage” that has accumulated on the computer over time. This will bring the machine back to its original performance.

Saving money wherever possible is always a wise thing to do. Better use of what we have is the best way to save dollars in your IT budget. I just ask one favour. If you reduce the budget for your IT department, please do not tell them it was my idea.

Reprinted with permission from the February/March 2009, Volume 24 Number 1 issue of The Bottomline, the journal of Hospitality Financial and Technology Professionals (HFTP). Terry Price, CHAE, CHTP, CPA is the executive IT manager at the The Grove Park Inn Resort & Spa in Asheville, NC. Price is also the HFTP Global Vice President and a frequent speaker at HFTP educational conferences.


Q: What is your greatest challenge today, and how can it be overcome?

Bruce Primeau, General ManagerSandman Hotel Lethbridge

The greatest challenge today across the hospitality industry in Alberta would appear to be the cutback of travel from both a corporate and leisure standpoint, as companies and individuals continue to be impacted directly or indirectly by the recession. Those that are travelling are showing an overall reduction in the number of days that they are travelling, thus leaving fewer room nights for hoteliers. As Alberta continues to slowly make its way out of the recession, it will be through solid sales and marketing strategies that this issue will be overcome. Attracting new business and catering to existing clients while encouraging longer stays through companywide initiatives are being seen as beneficial to the cost-conscious traveller.

Paul Baxter, General ManagerTunnel Mountain Resort, Banff

I would say that my greatest challenge today as a hotel manager continues to be the shortage of low skilled labour. This may be different than most responses, which most likely would be “deterioration of rate or market”, but since I am unable to influence world economies I will focus on what I am able to influence. For our hotel and our town (Banff) the Temporary Foreign Worker Program (TFWP) has been a business-saving success for the majority of service-based businesses. Recently the TFWP has been under fire from certain groups claiming that the foreign workers entering

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Greatest Challenges

the labour force on this program are “stealing” jobs from Canadians. I would challenge the critics of the TFWP to visit Banff next July and August. Come and witness firsthand the shortage of labour that continues to affect our guest and employee experience. Even in recessionary times, hotels are losing further money based entirely on labour shortage issues. We are all aware of the growing unemployment issue; however, the majority of the people who have lost their jobs recently are not in a position to come out to Banff, live in staff accommodation and clean rooms, cut grass, or wait on tables. If the critics of the TFWP are successful in decreasing the success or efficiency of this program, our local hotel and service industry will continue to face increasing labour issues and challenges. The solution is simple. Lobby your local MP to put pressure on this federal program to continue its efficient approval of Temporary Foreign Worker work visas.

Tressa Everett, General Manager Lakeview Inn & Suites, Brooks

In Brooks our biggest challenge has to be the lack of oil and gas activity as well as the slowing economy. Some hotels have resorted to lowering their prices to be comparable with the lower end motels and are attempting to steal our business from us. On request by companies, we have had to match or beat the prices of these hotels. Companies do not have the funds that they did a year ago and are trying to save all the money they can. Corporate and negotiated rates are declining so we can keep business we had previously established.

Sports teams that are still travelling want more affordable accommodations. They are hesitant to spend $130 per night on a room unless you have a pool and water slide.

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GRAND OPENING OF AHLA’S NEW BUILDING

AHLA’s new building opened in December 2009 AHLA directors Thomas Barknowitz and Steven James


AHLA Chair Doug Shandro with Campground Director Adam Ledwon

AHLA staff Shabeena Habib, Gayle Day, Jacqui Labelle, Heather Janiten and Suzy Kyle

AHLA members Karen Naylor, Perry Batke, and Brian Denham

Photos from the AHLA’s history have pride of place in the new building


Aerco 20Alberta Hotel & Lodging Association 21Coronet Equipment 30Corporate Edge Coaching 7Direct Cash BCGordon R. Williams Corp. 24LivClean Eco-Stay Program IBCH&R Framing for Art 5HED Insurance and Risk Services 19Hotel Concepts 15Image Distributors 12Jani-King of Southern Alberta 11JRoss Hospitality Recruiters 8Marble Concepts 24Restwell Sleep Products IFCRONA Inc. 20Serta 5Sysco Calgary 13West Coast Interiors 14

The AHLA welcomes the following new associate members: Faheem Adam, Marina Textiles Inc; Kerri Brown, On Side Restoration; Gerald Giebelhaus, West Coast Interiors Ltd; Stacy Grimm, Loop Interior Design; and Matthew Roselle, Iron Furniture Ltd. Congratulations to the new general managers at the following properties: Imelda Alay, Aladdin Motor Inn, Red Deer; Ted Bailey, The Georgetown Inn, Canmore; Ron Bateman, Rundlestone Lodge, Banff; Twyla Bauman, Ramada Inn & Suites Brooks; Lawrence Berube, Starlite Motel, Edmonton; Mike Bidlock, Jasper Avenue Inn & Suites, Edmonton; Darcy Blight, Motel 6, Grande Prairie; Mark Butler-Jenkins, Ramada Inn & Suites Clairmont; Mike Carlson, Mannville Hotel; Won Do Cho, Highwayman Motor Inn, Innisfail; Lorraine Chubb, Forestburg Hotel; Joey Cruz, Quality Hotel & Conference Centre Grande Prairie; Maria Cueva, Hilltop Motor Inn, Elk Point; Charlotte Donnelly, Super 8 Motel - Red Deer; Monique Dutchin, Best Western Westwood Inn By The Mall, and Southbend Motel, Edmonton; Elza Garcia, Totem Motel, Edson; Tressa Everett, Lakeview Inns & Suites, Brooks; Cindy Geertsen, Super 8 St. Paul; Hurricane Ghim, McMurray Inn, Fort McMurray; Jaime Gregory, Nova Inn - Whitecourt; April Handley, Parkway Motel & European Loges, Pincher Creek; Heather Hart, Sandman Suites Red Deer; Gail Hobbs, The Cedars Motel, Edson; Lance Homstol, Days Inn - Red Deer; Cindy Houston, Ramada Inns & Suites - Drumheller; Satpal Kang, Irma Hotel, Irma; Jinyoung Kim, Misty Mountain Inn & Suites, Grande Cache; Kathy Larocque, Midtown Motor Inn, Bonnyville; Sam Lee, Silver Crest Lodge, Grande Prairie; Joanne MacDonald, Dinosaur Trail R.V. Resort, Drumheller; Matthew McCormack, Radisson Hotel

NAMES IN THE NEWS

Winter 2010

& Conference Center Canmore; Grant McCurdy, Mayfield Inn & Suites, Edmonton; Kathryn McDonald, Westin Edmonton; John Mytz, Red Deer Lodge Hotel & Conference Centre; Bev Ollerhead, The Stonebridge Hotel Fort McMurray; Arlene Pavelko, Vantage Inn & Suites, Fort McMurray; Karen Rosielle, BCMInns - Peace River; Kuldeep Sekhon, Ventura Motel, Vermillion; Young Shin, Lodge Motor Inn, Edmonton; Shannon Strijak, Stonebridge Hotel Grande Prairie; Tracy Sutherland, Days Inn - Red Deer; Barbara Szymanska, Alpine Motel, Rocky Mountain House; Tim Tziachris, Blue Ridge Hotel; Darcy Wright, Aspen Village Inn Ltd and Waterton Lakes Resort, Waterton Park; and Walter Zawadiuk, Rest E-Z Inn, Edmonton.The North Edmonton Inn & Suites is now the Holiday Inn Express and Suites Edmonton North. The Parkside Inn is now the Travelodge Lethbridge.

Calgary’s newest boutique hotel, Hôtel Le Germain Calgary, opens its doors this month, and Christopher Vachon has been named as general manager. The hotel offers 143 rooms along with 40 luxury condominium units and an office tower.

Eden Textiles and Africa We Care have partnered in a recycling program that empowers women in Africa. A full 25% of the shipments made thus far have been donated by Eden Textiles, including all manner of bed and table linens. A great value is placed on these items, which in Canada are considered post-consumer materials. The goods are provided to African women at a nominal price to those who can afford it, and free to those just starting out. They, in turn, sell the items to hotels, motels, and some government establishments in their towns and cities, thereby supporting their families.

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Winter 2010 - AHLA · member survey. The Board of Directors relies on your feedback to direct the association. Please take a few minutes to tell us how we are doing, and how we can

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