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By Lewers, Christine
Publication: Indiana Business Magazine
Date: Friday, December 1 2000

When Jerald Good started in the hotel business 30 years ago, offering a free breakfast with an overnight stay was the latest way to keep ahead of the competition.

"It was a simple business," says Good, president and owner of Valparaiso-based Focus Enterprises, which owns and operates 20 hotels

in Indiana, Michigan and Ohio. His properties include the independent Auburn Inn and franchises of Carlton Lodge, Holiday Inn Express and Super 8. "Today, because of technology, our guests expect more and it doesn't matter if you're a limited-service hotel or a place where you're spending $300 a night."

Good and other Indiana hotel operators are rethinking their services and marketing strategies, not only to keep up with technology but with increased competition. Indiana Business Magazine's 2000 Indiana Hotel & Meeting Directory listed some 3,500 new hotel rooms.

Managers are realizing that guests want the same high-tech gadgets in their hotel rooms as they have in their homes and offices. At the same time, no hotel can let its guard down in the areas of service, cleanliness and property maintenance. "The bar has really been raised as far as what a hotel has to have and what it has to look like to attract guests," says Jeffrey Brown, vice

president of Schahet Hotels, which owns and manages four Hampton Inns and a Courtyard by Marriott Indianapolis.

What's doing the most to raise that bar? Brown says it's technology. Schahet hotels are being wired for high-speed Internet access, as are many of the state's hotel and conference rooms. There is usually an extra charge for using it, but for business travelers pressed for time or conference presenters who need the Internet to deliver their presentations, it's well worth the time saved.

Like Brown, Good realizes how important technology is for hotels to stay competitive. The 20 limited-service hotels he owns and operates, as well as the two currently under construction, are all wired for high-speed Internet access.

But high-speed Internet isn't all. Rooms with two telephone lines, cordless phones and large-screen televisions with 40-plus channels are becoming as standard in hotel rooms as they are in American living rooms, says Brown. Even video games in rooms are gaining popularity.

While hotels are upgrading technology, they aren't forgetting about who is most likely to use it: business travelers, many of whom are working at Internet speed while on the road. To make work more comfortable, Schahet hotels have put large, office-style desks in rooms and replaced wooden desk chairs with ergonomically designed chairs.

Hotels also have to continually improve the quality of their service, Good adds. "No matter how hightech you get in your facilities, the guest is always going to be interested in cleanliness and a friendly staff."

To improve his hotels' service, Good launched a training facility this year at the company's headquarters, complete with guest rooms, mechanical systems and front-desk systems to ensure consistency and quality of training for all staff levels.

Employees undergo on-site training, testing and certification and participate in a profit-sharing program that rewards workers whose hotels perform the best, not just in terms

of revenues, but in terms of customer satisfaction.

Thomas Richardson, director of operations for Fuhs Properties in jasper, says service is also a function of hiring friendly staff people, something that is often, and ironically, overlooked in the hospitality industry. "A lot of times in this industry we just hire a body because we need someone desperately," he says. Instead, his company tries to advertise positions and interview candidates in a way that makes customer-service expectations clear.

Most hotel operators know that in today's market they need to work harder than ever to provide friendly service and clean rooms. But as the state's hotels become more homogenous, they are also looking for ways to differentiate themselves.

One way Goshen Inn and Conference Center sets itself apart is by marketing its size. The hotel's 207 rooms and 450-seat conference facility means it can attract larger tour groups and conferences in a region where most newer hotels are typically much smaller, says general manager Ken Cross. "Many of the hotels being built don't have more than 80 rooms. We specialize in marketing to groups needing 80 to 100 rooms."

The Goshen Inn and Conference Center has concentrated much of its marketing efforts on reaching tour operators and conference organizers, it also has added and increased the size of its extended-stay suites as demand for them has increased.

But perhaps the most important aspect of remaining competitive is the 30-yearold hotel's recent $1.5 million renovation to completely update its interior. In an era when so many new rooms are hitting the market, it's a priority for older facilities, says Cross.

Packages can also help set hotels apart from their competition and attract guests with special interests. For example, General Hotels Corp., a hotel management company based in Indianapolis, successfully introduced a family fun package at its Holiday Inn and Crowne Plaza hotels in Indianapolis. Included in the $139 one-night stay are four tickets to the Children's Museum and the Indianapolis Zoo. And kids under 12 eat free.

Building on the success of its family package, General Hotels started a similar sports package this summer, says Glenn Brooks, vice president of sales and marketing. The company also offers a romantic getaway package at its. Holiday Inn Select Airport that includes a dinner for two at Chanteclair, the hotel's finedining French restaurant.

Frequent-stay programs can also help attract guests. But rather than give away points toward free stays or merchandise, the two Adam's Mark Hotels in Indianapolis, which cater to business travelers, put together a cash-back program for loyal guests. "We're averaging 45 new sign-ups per day," says Kevin Gallagher, general manager at the downtown facility. "Cash-back programs are more popular than traditional programs," he says, adding that Adam's Mark guests can get up to 5 percent of their bill back each year, based on the dollars they spend anywhere in the hotel.

Dining is another area where hotels can shine. Adam's Mark is one of the few in the city offering 24-hour room service, says Gallagher, and the hotel is getting quite a few orders between midnight and 3 a.m., as road-weary business travelers try to catch up with work and a meal. The hotel also has an exposition kitchen, where diners can watch their meals being prepared. Healthconscious entrees, as well as more pastas and thin-crust pizzas, are replacing traditional hotel fare, says Gallagher.

And many hotels today tout their restaurants as attractions in themselves. In Indianapolis, the Holiday Inn Select Airport's Chanteclair and the Holiday Inn Select North's San Remo fine-dining Italian restaurant are two examples.

Hotels also use targeted marketing. Fuhs Properties has four operations: Baymont Inn and Suites in Dale, Wilstem Guest Ranch in French Lick, the Hillside Inn in Madison and the Gasthof Village Inn in Montgomery. Each property is different and requires its own marketing strategy. For example, Wilstem Guest Ranch is a dude ranch, so the property targets its advertising dollars to reach horse enthusiasts in the summer and skiers in the winter.

Hotel operators use the Internet to reach prospective guests by having their Web sites linked with area attraction. "That's key," says Richardson, "because if someone wants to go to an attraction in your area, chances are they'll need a place to stay." For example, a link from Holiday World's Web site has generated a lot of new business for Baymont Inn and Suites, he says. The company also accepts online reservations through the Indiana Online

Lodging Reservation Service, a partnership of the Indiana Hotel and Lodging Association and international reservation processor WorldRes.com. That site can be reached through a link on the official state tourism page, www.enjoyindiana.com.