Innkeeping

1
Innkeeping

• Our bright and beautiful future
• Debbie Mosimann
• PAII Board Chair

2
Our Future built on a solid Past

• Inns becoming more professional in their approach
• Innkeepers educating themselves to be better
  business people
• Guests driving us to higher standards
• Past experience and research is helping us define
  what really matters to the guest

3
Occupancy, our measure of success

• Occupancy - Number of rented room nights divided
  by total number of room nights available in the
  year
• Average Daily Rate
• Revenue per Available Room (RevPAR) Total room
  revenue divided by number of room nights
  available

4
Performance in comparison

• Occupancy
• 43 for BBs, 63 for all lodging, 2
• Average Daily Rate
• 166 for BBs, 97 for all lodging, 5
• Revenue per Available Room (RevPAR)
• 70 for BBs, 6

5
More About RevPAR

• Midwest 55.60
• Southeast 60.96
• Northeast 74.25
• West 81.48

6
Luxury and Comfort

• Offering Luxury Beds and Linens
• 2004 65
• 2006 74
• Offering Robes
• 2004 29
• 2006 68

7
Development and Use

• 75 are Historic Homes
• 16 are Purpose Built in Last 10 Years
• Slight Trend Towards Purpose Built
• Takes headache out of retrofitting or dealing
  with

8
Modernization

• 94 of Bathrooms are Private
• Wireless Internet
• 2004 60
• 2006 85

9
Business of Innkeeping

• 41 Have Been Innkeeping for 7 Years
• 70 Owned by Corporate Entity
• Payroll is Up (not as up as revenue)
• 4.3 Staff is Average
• 82 Owned by Couples
• 88 Live on Premises
• 58 Rely on Outside Income

10
Evolving Trends and Outlook

• Real Estate Market Working Against Us
• Softening of Prices and Existing Home Sales
  Down
• Inn Purchases Contingent on Sale of Primary
  Residences
• Availability of Credit

11
Parting Thoughts

• 40 of All Online Spending was on.?
• You Are Being Compared, Like It or Not level
  playing field (Expedia example)
• Basic Expectations Clean, Better Food than
  Hampton Inn, High Speed Internet, Online
  Reservations (real-time), Prices in Line with
  Amenities/Luxury, Courteous Innkeepers
• Existence of Affordable Tools Allow You to
  Compete and Serve

12
Parting Thoughts

• Web 2.0 is HERE! Soon add online reviews to
  Basic Expectations. Replace the in-room
  journals!
• Consumers trust each other more than they
  trust you (marketers). Geoff Ramsey, CEO of
  eMarketer
• In fact, research shown at the TIA meeting
  indicates that consumers trust anonymous peer
  reviews more than professional travel journalists
• In fact, BedandBreakfast.com is reporting that
  properties with online user reviews are getting
  double the traffic that comparable properties
  that dont have reviews are.
• Business Travelers, Green Inns (IQ story),
  Families, Specialty Marketing (Scrapbooks,
  Birding, EcoTourism), Pet friendly.

13
Parting Thoughts

• Consumers feel the most important travel web
  site features are
• 90able to check fares (not price ranges only)
• 81 easy-to-use booking
• 71photos of rooms. Peter Yesawich, CEO of
  Ypartnership
• Still Have Leg-Up on Hotels from a Consumer
  Perception Standpoint
• Customer Service (can never find GM name/email on
  web)
• Security
• Luxury
• Food- Breakfast has become important
• Need to Stay Ahead

14
PAII Highlights

• Annual Conference Trade Show
• Anaheim, CA April 7-10, 2008
• Aspiring, Basic and Advanced
• Great Innkeeper Idea Fair
• iRobot
• Print Resources
• Innkeeping Quarterly
• Industry Study of Operations and Finance
• Marketing Practices
• Online Forum
• What is YOUR question?

15
PAII Highlights

• Member Discounts and Advantages
• Home Depot Supply
• NPC, Payment Alliance
• Magazine Subscriptions
• Your Voice
• Lobbying and Public Relations
• Connections
• Friends, Networking, Mentors
• Chains have bureacracies and management you
  have PAII

16
(No Transcript)
17
PAII Mission Statement

• We are committed to fostering a caring,
  knowledgeable and conscientious community of
  professionals through education, information,
  advocacy, business opportunities and research
  relating to the innkeeping industry.

18
PAII Vision Statement

• PAII LISTENS to the needs and desires of the
  innkeeping community, which includes aspiring,
  active, interim and retired innkeepers, as well
  as industry suppliers and allied organizations
•  
• PAII SERVES the innkeeping community by
  connecting people to share ideas, solve problems,
  build relationships and conduct business
•  
• PAII REPRESENTS the innkeeping community through
  successful public and media relations efforts and
  public policy advocacy
•  
• PAII STANDS FOR a commitment to excellence and
  professionalism within the innkeeping community
  and among the general public
•  
• PAII LEADS the innkeeping community by supplying
  progressive, reliable and relevant information,
  education and resources aimed at supporting
  individual success
•  
• PAII THRIVES as a successful and formidable trade
  association representing most innkeepers
  throughout the United States and beyond