Six Continents Revises Business Strategies To Aid U.S. Hotels’ Recovery

ATLANTA— Six Continents Hotels has altered its short-term business focus in The Americas region in light of the tough industry climate, temporarily cutting franchisees breaks on processing fees, extending renovation deadlines and rolling out local marketing programs. Ravi Saligram, brand president/The Americas for Six Continents said the moves are part of an overall strategy to bring travelers to its hotels and help those franchisees who may be suffering from short-term cash flow problems due to the recent travel slump. “We want our franchisees to know that we stand by them, side-by-side and know what they are going through,” said Saligram. As such, several new initiatives have been introduced to help Six Continents’ hotel brands in the United States perk up business. The latest marketing program, which launched Oct. 1, is aimed at helping the upscale Crowne Plaza and Inter-Continental brands, which Saligram said “have been affected the most.” He noted that in general, upscale brands have suffered more than their midscale and economy counterparts “because of the lack of U.S. air travel and major businesses cutting back on corporate travel.” Inter-Continental and Crowne Plaza hotels in New York and New Jersey launched a “Come Back to New York” campaign, designed to encourage travelers to return to the Big Apple. The campaign offers reduce rates at seven hotels in the region, from $109 to $149, through Oct. 31. Print ads helped kick off the campaign Sept. 28 in The New York Times, and will run this week in USA Today. Properties involved in the promotion include: the Inter-Continental The Barclay New York, Inter-Continental Central Park South New York, Crowne Plaza Manhattan, Crowne Plaza at the United Nations, Crowne Plaza La Guardia, Crowne Plaza Meadowlands, N.J. and the Crowne Plaza Clark, N.J. To provide “temporary relief” for franchisees who may be experiencing cash flow difficulties, Six Continents Hotels in The Americas will be given a break on fees related to the company’s frequent guest program, Priority Club, said Saligram. Assessment fees for Priority Club transactions are being waived through Oct. 11 at all hotels across all brands in The Americas. In addition, hotels will not be responsible for paying for first time enrollments in the Priority Club beginning Oct. 11 through April of 2002. This will be practiced worldwide, said Saligram, and will be paid for by Six Continents. Other business practices are also being altered to ease the burden on Six Continents hotels in the U.S. for the short-term, said Saligram. For example, a price increase set for Jan. 1 for Six Continents’ reservations system will be delayed by three months. Also, Holiday Inn hotels which are renovating their properties to get in line with the brand’s Standard Rooms Décor program, will be allowed to postpone capital improvements. All hotels were slated to be in compliance by Jan. 1, but an extension gives hotels until July 1, 2002 to comply. In some areas, where occupancies are lower than usual, Six Continents has told its hotels with full-service restaurants, that they can operate their dining facilities using flex hours— keeping them open only during peak times or when most needed, to help reduce overhead expenses. “Balance is key to getting us through this,” said Saligram, who noted that “just because there is a crisis, that’s no excuse to allow for poor guest experiences. We’re doing what we can to make sure our guests are having only the best possible experiences.” Saligram noted that while some business practices have changed, Six Continents is committed to moving ahead with new hotel developments. In fact, a new Crowne Plaza hotel opened just last week in Buckhead, GA, just outside Atlanta, he said.