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"Last Room Sell Function" Revenue Enhancer |
| SILVER SPRING, Md.-- Aug. 8, 2001--The installation
of the first phase of InSync, the proprietary, last room sell function
developed by worldwide lodging franchisor Choice Hotels International (NYSE:CHH),
is now complete, with over 2,400 Comfort Inn, Comfort Suites, Quality,
Clarion, Sleep, and MainStay Suites brand hotels employing the revenue-enhancing
feature.
Designed as a critical element of Choice's state-of-the-art property management system, Profit Manager, InSync synchronizes the rooms inventory of the Profit Manager system with CHOICE 2001, the company's central reservations system (CRS). As a result of synchronizing their databases, both systems are able to sell rooms until the last room is sold. "Before InSync, our reservations agents were only able to sell rooms that a hotel loaded into the CRS," said Gary Thomson, senior vice president, chief information officer at Choice. "If a hotel neglected to load rooms we had to turn potential guests away - even if the hotel was less than 100 percent full. "With this system, both the CRS and the on-site Profit Manager system are operating off of the same inventory," said Thomson. "If rooms are available, we now know it. Essentially, all sales channels - call center, Internet, global distribution systems, direct calls to the hotel, group sales, and walk in - are operating with the same information. InSync ensures that hotel rooms can be booked until the last room is sold." According to Thomson, as a result of the InSync function, Choice brand hotels have experienced an average decrease of 25 percent in room sales denials via CHOICE 2001 - potential guests turned away because available inventory was not loaded into the CRS. And individual hotels have reported significant increases in revenue due to InSync. Addison Richardson, owner of the Comfort Inn in Virginia Beach, VA, credits InSync with an overall increase in revenue at his hotel of up to 10 percent. "It's also cut my reservation management workload from six hours to two hours per day - hours that can be used far more productively elsewhere," Richardson said. "It's a fantastic tool." Chuck Ledsinger, President and CEO of Choice, cites the InSync installation as another example of how the company is employing technology to deliver value to franchisees. "Particularly in today's challenging economic environment, every room sale counts," he said. "InSync helps Choice maximize sales opportunities for our franchisees. This is a financial bonanza for them - and for the company." The full installation of the last room sell capability of InSync marks the successful completion of Phase I of the function. Phase II, currently under development, will enable Profit Manager and CHOICE 2001 to synchronize rates. Currently, hotels must set rates separately on each system. Phase II of InSync will also enable Choice to extend Profit Manager's yield management function, called RevPAR Maximizer, to CHOICE 2001 as well. Phase II of InSync is slated for completion by the second quarter of 2002. Choice Hotels International is the world's second largest lodging franchisor, marketing more than 5,000 hotels open or under development in 43 countries under the Comfort Inn, Comfort Suites, Quality, Clarion, Sleep, Econo Lodge, MainStay Suites and Rodeway Inn brand names.
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| Choice Hotels International
Joe Squeri Sr. Vice President, CFO and Treasurer 301/592-5006 or 301/592-5155 [email protected] |
| Also See: | Choice Hotels International, Inc. Enjoyed Strong Royalty Fee Gains of 4.9% During 1st Qtr, Yield Management Credited for RevPar Growth / April 2001 |