By Burl Hutchison, CRME, Manager of Revenue Optimization, Sabre Hospitality and member of the HSMAI Revenue Management Advisory Board

Seldom having the resources, the budgets or the loyalty programs that go along with a national or international hotel chain, independent hoteliers often find themselves asking the question, "How can we compete against the chains?" With the rebound in the economy and in travel*, there are some key steps independents can take now to make the most of every booking channel and ramp up your competitiveness. (*PKF recently released a new and improved forecast, increasing expected RevPar growth from 5.6% to 7.1% in 2011.)

But first, let's get on the same page. An independent hotel, as I see it, is an individual property or a small group of hotels. It typically has independent ownership and may have multiple investors. It may be self managed or may be part of a group of properties that share the same management company. However managed, the fundamental differentiator between independents and chain hotels is that chains share in a widely recognized brand name and chain code.

The GDS
For most of us, the GDS (global distribution system) has always been an important channel, yet it is always the one we seem to know the least about. Unlike with your website or the online travel agencies, the GDS information is not at your fingertips. However, the information within these systems, and how we play in them, is crucial in the production that you receive.

For the first time in many years, the rebound of offline travel bookings is outpacing the growth of online travel bookings. Corporate travel budgets are expected to jump by 4.5% in 2011. While bookings will not reach the record highs of 2007, things are improving and are expected to keep gaining momentum into 2012. With the growth of offline travel, now may be the time to take advantage of GDS opportunities.

A chain code is a two letter code used by the GDS to identify what chain a property belongs to. Most large hotel chains have their own private label chain code. Most independent properties and small groups use the chain code of a representation company such as Utell or Sabre Hospitality Solutions (full disclosure: this is my employer).

Are independents better served by their own chain code or by the chain code of a distribution company? Just like revenue management, the answer to that question is unique to every property and every situation. If your goal is to build brand awareness for your property, then a private label chain code might be for you. It would allow you to control your own marketing messages, promote chain level standards, promote loyalty programs and communicate a level of consistency and uniqueness across multiple properties. This is especially important if you have a strong regional or city presence.

There are many variables in determining whether to have your own GDS chain code. Ask your representation company to help guide you in making the right decision for your property. For instance:

• What is your true objective in obtaining that code? Can you meet that same objective with using the code of a representation company?
• Do you have a significant marketing budget to promote your private chain code to the travel agent community?
• What is your current GDS production? And can you meet the GDS transaction minimums?

• Chris K. Anderson, Ph.D., Professor, Cornell University
• Christopher Crenshaw, CRME, Vice President, Marketing Intelligence, Loews Hotels
• Kathleen Cullen, CRME, Corporate Director of Revenue Strategies, Heritage Hotels and Resorts
• Sloan Dean, CRME, Vice President of Sales & Marketing, Interstate Hotels & Resorts
• Jon Eliot, CRME, CHA
• Tammy Farley, Principal, The Rainmaker Group
• Fred Heintz, CRME, Director of Group Strategy, Marriott & Renaissance Hotels of New York City
• Jay Hubbs, Director Hotel Supplier Relations, Expedia Partner Services Group / Hotwire
• Burl Hutchison, CRME, Manager of Revenue Optimization, Sabre Hospitality Solutions
• Warren T. Jahn, Jr., Ph.D., Manager, Revenue Systems Training AMER, IHG
• Klaus Kohlmayr, Senior Director, Consulting, IDeaS Revenue Optimization
• Orly Ripmaster, CRME, Senior Analyst, STR Analytics
• Scott Roby, CRME, Vice President, Revenue Management, Evolution Hospitality
• Chinmai Sharma, Vice President, Revenue Management, Wyndham Hotel Group
• Susan Spencer, Market Director - N. America, ChannelRUSH
• Trevor Stuart-Hill, CRME, President, Revenue Matters
• Rob Sudakow, Director of Revenue, Destination Hotels and Resorts
• Paul Wood, CRME, CHBA, Vice President of Revenue Management, Greenwood Hospitality Group