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technology Guest Entertainment: IPTV changes everything Digital TV: Are you ready?

refurbishment Furniture Packages: Budget is not a dirty word Financing: Decisions made easier by financing alternative

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www.accomnews.co.nz

Issue 21 | Winter 2013 NZD $16.50 (Inc GST)

Buying Management Rights in Australia

the no.1 guide to specialist accommodation industry product & service suppliers

Choice Hotels – Your missing link Fairtrade Ad 4.pdf

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20/07/12

Profile Inside >

2:09 PM

hotels • motels • resorts • apartments • time share • holiday parks • budget • retirement We like to think our One Fairtrade range is pretty cool and based on the initial sales, so do you. It also turns out that Mr Big from Fairtrade itself agrees with us... “Health Pak is the first and only NZ company to produce a 100% Fairtrade Certified beverage range exclusively for the hospitality market” Stephen Knapp, CEO Fairtrade Australia & New Zealand

For samples and pricing contact your local Health Pak distributor or www.healthpak.co.nz sales@healthpak.co.nz | Phone 09 579 6268


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The accom management guide is distributed quarterly to Accommodation Industry Managers and Professionals throughout New Zealand.

Winter

www.accomnews.co.nz PUBLISHER EDITORIAL

PRODUCTION

Darren Willis d.willis@accomnews.co.nz

industry

Kim Armstrong-Fray k.armstrong@accomnews.co.nz Richard McGill r.mcgill@accomnews.co.nz

ADVERTISING

Stewart Shimmin 03 974 1036 advertising@accomnews.co.nz CONTRIBUTORS

Allan Trotter, Amanda Clarke, Brent Leslie, Dan Keenan, Daryl Hughes, David Roney, Graham Vercoe, James Kenny, Kelvyn Coffey, Larry Mogelonsky, Lindsay Upjohn, Michael Baines, Mike Phipps, Mike Roberts, Ned Vernon, Peter Ford, Rachael Shadbolt, Roberta Nedry, Rosie Clarke, Stephanie Haami, Sylvia Johnston, Tim Monck-Mason, Tony Brindle and Zahava Elenberg accom management guide welcomes editorial contributions and images on relevant topics for features, news items or new products. Please email copy to: editorial@accomnews.co.nz. Images should be in high resolution (300dpi) JPEG or TIFF format.

05

TIA Report: Alcohol law changes affecting hotels

06

Special Report - Tourism: Hobbits still proving a big money-spinner

08 09

CINZ Report: It’s been a long time coming!

ADVERTISING CONDITIONS:

The publisher reserves the right to refuse to publish or to republish without any explanation for such action. The publisher, its employees and agents will endeavour to place and reproduce advertisements as requested but takes no responsibility for omission, delay, error in transmission, production deficiency, alteration of misplacement. The advertiser must notify the publisher of any errors as soon as they appear, otherwise the publisher accepts no responsibility for republishing such advertisements. If advertising copy does not arrive by the copy deadline the publisher reserves the right to repeat existing material. INDEMNITY:

Advertisers and Advertising Agents warrant to the publisher that any advertising material placed is in no way an infringement of any copyright or other right and does not breach confidence, is not defamatory, libellous or unlawful, does not slander title, does not contain anything obscene or indecent and does not infringe the Consumer Guarantees Act or other laws, regulations or statutes. Moreover, advertisers or advertising agents agree to indemnify the publisher and its’ agents against any claims, demands, proceedings, damages, costs including legal costs or other costs or expenses properly incurred, penalties, judgements, occasioned to the publisher in consequence of any breach of the above warranties. © 2013. No part of this publication may be reproduced without written permission from the publisher. accom management guide is proudly published by:

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Door Lock Technology: Safety and security in door lock technology

energy & resources 44

Guestroom Energy Management: Switching on to energy efficiency

technology

10

Sales: The problem of too many sales leads

46 47

Digital TV: Are you ready?

11

Insurance: What’s keeping you awake at night?

50

13

Photography: Think of it from the guest’s perspective

Case Study – Ramada Couran Cove Island Resort: Couran Cove selects up-to-theminute IPTV

51

Docking Stations: A faster future for hospitality docking stations

accom management guide is distributed quarterly to hotel, motel, resort and apartment complexes throughout New Zealand. Views and opinions expressed in this publication are not necessarily those of the publisher or Multimedia Publishing Limited. Every effort has been made to ensure the accuracy of information in accom management guide, however the information contained in accom management guide is intended to act as a guide only. The publisher, authors and editors expressly disclaim all liability for the results of action taken or not taken on the basis of information contained herein. We recommend professional advice is sought before making important business decisions.

safety & security

MANZ Report: Creating an experience is key

management

2013

marketing 16

Utilising Guest Data: The risks of data sharing

17

Hotel Franchising: The hotel franchising growth opportunity

20

Promotions: Making an offer they can’t refuse

21

Bookings: I’ll just award myself five stars

refurbishment 22

Bathrooms: Bathrooms, more than just water

24

Furniture Packages: Budget is not a dirty word!

24

Financing: Refurb decisions made easier by finance alternative

27

Maintenance Programmes - Painting: Extend the paint life on your building

guest facilities 53

Guest Movers: People movers becoming more important in the accommodation industry

56

Vending Machines: How a vending machine can add value to your business

property 58

Property Report: Signing up to sell your business

60

Management Rights NZ: Management rights and the business

60

New Manager Profiles: Challenges and rewards

62

Management Rights Australia: The in’s and outs of obtaining a licence

64

Management Rights Australia: Why do Australian lenders love management rights?

housekeeping 29 32

Bed Linen: All about sheets

35

In-House Laundries: Making the most of a compact in-house laundry

35

Vacuums: Which vacuum system suits you best?

Healthy Beds: Health a prime factor when choosing new beds

Guest Entertainment - IPTV: IPTV changes everything

preferred suppliers 67

Preferred Suppliers Directory

PO Box 5104,Papanui, Christchurch, 8542 New Zealand Phone: (03) 365 5575 Fax: (03) 365 1655 mail@accomnews.co.nz www.accomnews.co.nz ISSN: 1178-8941

Cover photo: Quality Inn Hurley’s - Queenstown

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ACCOM MANAGEMENT GUIDE


industry i TIA Report:

Alcohol law changes affecting hotels NEW ALCOHOL LAWS ARE BRINGING SOME SIGNIFICANT CHANGES AROUND THE WAY LOCAL AUTHORITIES ADMINISTER THEIR LICENSING FUNCTIONS WHICH IS SET TO HAVE MAJOR IMPACT ON THE TOURISM AND HOSPITALITY SECTOR. In particular, local alcohol policies (LAP) could affect the legality of hotel minibars and events like champagne breakfasts. The new Sale and Supply of Alcohol Act 2012 sets default maximum hours 7am to 11pm for off-licences and 8am to 4am for on-licences, club licences and special licences. This means that it would be illegal for hotel guests to access their minibars between 4am and 8am, while champagne breakfasts, although not regular occurrences, could not begin before 8am. For the minibar issue one option may be to remove them – with potential consequent negative impacts on Qualmark ratings. However, local authorities have broad discretion over what is included in an LAP, which could address not only the mini bar issues for hotels but also concentration, location and hours of licensed premises and may include one-way door restrictions so that after a certain time, nobody can be admitted or re-admitted into licensed premises. Unlike current alcohol policies, LAPs are subject to the special consultation procedure under the Local Government Act 2002. Only a person who made a submission on the draft local alcohol policy can appeal any element of the provisional policy which is why it is vital to get involved now. TIA strongly recommends you take a proactive approach within your community to understand these issues. Meanwhile, TIA is writing to the chief executives of all local authorities to ensure their LAPs address the hotel minibar issue. In Wellington, the City Council is proactively advancing the development of its Local Alcohol Plan, and addressing the hotels’ minibar concerns, well in advance of the Act coming into effect on 19 December. Christchurch is also at the public consultation stage. However, the rest of the country is lagging behind with many choosing to address the issue only after the Act takes effect. In areas where no LAP has been adopted, this will mean that hotels will effectively be operating illegally for four hours of each day unless an amendment to the Sale and Supply of Alcohol Act is made prior to its introduction (easier said than done).

While TIA has been grappling with the finer details of the Sale and Supply of Alcohol Act, hotels have been going about the business of increasing occupancy and room rates with the first five months of 2013 performing well by comparison with the last few challenging years. For the year to May, national occupancy was up 4 points to 76 per cent with all star ratings enjoying increases. The Average Daily Rate (ADR) also showed an increase of $4 to $140. Rachael Shadbolt Coupled with the growth in occupancy, that meant RevPar was up a healthy $9 to $106, the highest RevPar of the last five years and enjoyed across all star rating bands. The visitor mix within these results shows where the real action has been happening. While the New Zealand and Australian markets remain steady, significant growth has been seen from China and not only during the traditionally busy Chinese New Year period. Visitor numbers from this important developing market have been consistently up all year, particularly in Rotorua where the city enjoyed a strong February (Chinese New Year) with 18 per cent of hotel guest nights being Chinese. We would have expected this number to drop after the New Year period but it continued to track upwards, with the May result being 21 per cent of hotel guest nights, up 10 points on last year. China is now Rotorua’s second largest visitor market after domestic. We are seeing a similar picture at national level although some regions that are off the traditional touring route are yet to see any significant numbers of Chinese visitors. Over the next few years, significant effort will be put into the development of this fast-growing market. We need to ensure New Zealand is delivering the sort of experience Chinese visitors want, as well as making FIT Chinese visitation easier. This work will form part of the National Tourism Plan which is being developed by TIA to provide our industry with an informed sense of direction. Due to be launched at the TIA Summit on 1 October, the National Tourism Plan is about the industry working together to create the strongest possible platform from which individual businesses can build for their own success. It is about identifying specific opportunities which have potential to generate significant economic growth for New Zealand. The accommodation sector is integral to this effort and we look forward to sharing more details with you as the project progresses. By Rachael Shadbolt, Sector Manager Hotels, TIA

“We appreciate Health Pak’s efforts to care for holidaymakers and travellers in a way that’s kind to nature” Forest & Bird General Manager, Mike Britton. For every Forest & Bird product you purchase, Health Pak will donate a percentage to Forest & Bird to support their magical work in protecting our native flora & fauna.

For free samples and pricing contact your local Health Pak distributor or www.healthpak.co.nz sales@healthpak.co.nz Phone 09 579 6268

WINTER 2013

05


i industry Special Report: Tourism

Hobbits still proving a big money-spinner

Hobbiton still a major tourist drawcard. Pic by Ian Brodie.

A DECADE OR SO AGO, WHO IN THEIR RIGHT MIND WOULD HAVE PREDICTED THAT A FUNNY LITTLE FICTIONAL CREATURE, THAT HAS NOTHING TO DO WITH THIS COUNTRY, WOULD IN 2013 BE A SIGNIFICANT DRIVER OF NEW ZEALAND TOURISM? Yet, this is the case. Investment in marketing New Zealand’s association with the Hobbit trilogy is paying off in increased visitor motivation and arrivals, says Tourism New Zealand’s (TNZ) chief executive Kevin Bowler. “Information gathered from three separate research sources is really starting to present a positive picture for the country thanks to the Hobbit trilogy and our 100% Middle-earth, 100% Pure New Zealand campaign,” said Bowler. Tourism New Zealand’s own Active Considerer monitor shows the impact of the campaign, first launched in August 2012, in key markets, he said. “We asked specific questions about the campaign in the AC monitor in seven key markets and 82 per cent of respondents state the campaign increases their interest in New Zealand, and 73 per cent state the campaign improved their opinions of New Zealand. “In terms of actual arrivals, we know from the International Visitor Arrivals data that for January-April 2013, holiday arrivals into New Zealand are up a very pleasing 10 per cent on last year. Notably, holiday arrivals from the United States, a key target market for our Middle-earth campaign, are up 23 per cent on the same period last year. “This increase in holiday arrivals over January-April perfectly coincides with the release of the first Hobbit film and a significant increase in our efforts to promote New Zealand as a holiday destination off the back of it,” he said. “Finally, new information gathered from the International Visitor Survey shows that 8.5 per cent of all international visitors surveyed January to March this year, say The Hobbit was a factor in stimulating their interest in New Zealand as a destination.

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ACCOM MANAGEMENT GUIDE

“We know that very rarely there is just one reason for someone to visit New Zealand – there are usually a number of factors. The objective of Tourism New Zealand’s Middle-earth marketing is to provide additional motivation and reason to convert potential travellers’ interest in New Zealand into an actual booking – and it’s working!” The most dominant reason to consider a visit to New Zealand remains our “spectacular landscapes and scenery” which is referenced by 46.7 per cent of surveyed visitors. The Hobbit rates alongside “getting a good deal on flights” at 8.8 per cent, demonstrating the power of the connection between New Zealand and Middle Earth, Mr Bowler said. According to TNZ stats, 13.2 per cent of international visitors over January to March took in a Hobbit experience while in New Zealand, including group tours specifically visiting film sites or visiting Hobbiton. Leveraging the Hobbit trilogy continues to feature heavily in Tourism New Zealand’s new three-year marketing strategy with the ongoing use of the 100% Middle-earth, 100% Pure New Zealand campaign with significant events being planned for the international premieres of films two and three.

Air New Zealand partnership Air New Zealand and Tourism New Zealand have signed a Memorandum of Understanding (MoU) valued at more than $20 million, in a one year partnership to undertake joint marketing activity promoting travel to New Zealand in selected international markets. The investment represents an increase in planned joint marketing spend of around 80 per cent compared with the previous financial year. In mid June, Air New Zealand unveiled its new aircraft livery which features the iconic official New Zealand Fern Mark, the use of which is managed by Tourism New Zealand and New Zealand Trade and Enterprise. Under the MoU, Air New Zealand and Tourism New Zealand will each invest more than $10 million over the next 12 months in co-operative marketing activity in the key markets of Australia, China, Hong Kong, Japan, North America, the United Kingdom and Europe as well as increased activity in emerging markets such as India and Indonesia.


industry i Subsection:

Headline

WINTER 2013

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i industry CINZ Report:

It’s been a long time coming! THE RECENT ANNOUNCEMENT BY THE PRIME MINISTER OF NEW ZEALAND JOHN KEY, THAT THE NEW ZEALAND GOVERNMENT HAD REACHED AN AGREEMENT WITH SKYCITY ENTERTAINMENT GROUP IN WHICH IN RETURN FOR CERTAIN CONSIDERATIONS, SKYCITY WILL BUILD THE INTERNATIONAL CONVENTION CENTRE AT A COST OF NZ$402M IS GREAT NEWS FOR THE CONVENTION INDUSTRY, AND IS ALSO LONG OVERDUE. CINZ has been lobbying for such a facility for at least the last 12 years with varying degrees of success, but I guess looking back, it is like building a strong foundation for a building insofar as a lot of the earlier work that CINZ did was taken on board by various entities and used to build a business case justifying the need for an International Convention Centre for New Zealand. The agreement involves certain changes to gambling legislation in New Zealand which have been very controversial in terms of their alleged impact on problem gambling and the social cost associated with this, but if the changes go through Parliament it is anticipated that construction will start in 2014 with the facility been completed sometime in late 2016. The incumbent National Party has the numbers to get the legislation through Parliament and I foresee no issues with this.

The challenge for New Zealand, as I have mentioned before, is to make sure that it increases the marketing effort in the international association marketplace and that the country presents a united front in terms of positioning New Zealand as a compelling and dynamic convention destination going forward. The combined new infrastructure will propel New Zealand to a different league in terms of Alan Trotter its international competitiveness in the convention marketplace but there needs to be an awareness that the lead times involved in securing medium to large international conventions mean that marketing for the new International Convention Centre in Auckland needs to start very soon, and once the decisions Many people in have been finalised regarding the other two proposed the wider tourism facilities they too need to be marketed with the utmost industry do not urgency. Regrettably, many people in the wider tourism understand the issue industry do not understand the issue around lead times around lead times for for convention bookings and there is certainly a job to convention bookings be done to educate these people as to the realities of and there is certainly the marketplace.

a job to be done to educate these people as to the realities of the marketplace.

There are still discussions around the proposed new 2,000 seat convention centre to be built in Christchurch to replace the one that was destroyed in the February 2011 earthquakes, and there is also a strong possibility that a 1,000 seat convention centre will be built in Queenstown, so New Zealand is certainly on a roll in terms of new convention infrastructure that will be coming on stream in the next three to four years.

However, on a more positive note, it was great to see that the government will be investing a further $34M for business tourism marketing for Tourism New Zealand in the next four years, and given the infrastructural developments, this is a very welcomed decision. CINZ is in discussion with Tourism New Zealand about how we can work even more closely together to ensure that the ROI on this increased spending is maximised, particularly in the all-important Australian market. It is most pleasing indeed that in these challenging economic times, the government has seen fit to increase Tourism New Zealand’s budget across the board, and even more encouraging, to see that $34M is specifically targeted for business tourism marketing and this bodes well for the future. By Alan Trotter, CINZ

Special Report: Tourism Air New Zealand CEO Christopher Luxon says the MoU will extend and deepen the airline’s existing relationship with Tourism New Zealand, its largest marketing partner. “Air New Zealand has a long-standing relationship with Tourism New Zealand, having worked closely with the organisation in all of our key markets to promote New Zealand for a number of years.” The MoU signalled “a significant step-change in the level of joint marketing activity we will undertake to promote destination New Zealand,” Luxon said.

Emirates coup A deal with another world-leading airline is also set to lead to spin-off benefits. A strong working relationship between Tourism New Zealand and Emirates has resulted in a tourism coup, with Emirates choosing to host its annual Australia market incentive in New Zealand for the first time ever. Regional Tourism Organisation and partner in the deal, Hawkes Bay Tourism hosted 28 of Emirates’ top travel sellers and executive team from Australia in June, as part of the airline’s annual thank you weekend. This is

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ACCOM MANAGEMENT GUIDE

the first year the incentive has ever been hosted outside of Australia. The group stayed at the five-star luxury lodge The Farm at Cape Kidnappers and had the chance to experience some of the Hawke’s Bay’s finest restaurants, wineries and activities. Flight Centre founder and MD Graham Turner and Jetset Travelworld Group CEO Rob Gurney were among the influential group of travel sellers. Tourism New Zealand general manager Australia, Tim Burgess, said that having the chance to host a group of this calibre was a great opportunity to further build New Zealand’s profile in Australia. “Earlier in May, we hosted a famil of 250 agents from Australia in partnership with Emirates. The feedback they gave us about the trip and the location was fantastic. After that, it was an easy job to pitch New Zealand for this incentive weekend.” Emirates Vice President Australasia Barry Brown said the quality of New Zealand’s tourism product helped influence their decision to bring this group of VIPs across the Tasman. In June, Emirates was awarded the highly coveted ‘World’s Best Airline’ award.


industry i MANZ Report:

Creating an experience is key IT APPEARS TO ME THAT IN TOURISM WE HAVE ENABLERS AND ACTIONERS. THOSE GETTING THE PEOPLE TO THE DESTINATION ARE THE ENABLERS; AIRLINES, AIRPORTS, TRAVEL AGENTS, ETC. The actioners are the people that give the tourist the experiences that turn the travellers into advocates and ensure that their words, when they go back to their place of origin, truly reflect the great time had in the place they stayed. When you analyse the activities that people undertake on their tours, be that domestic or international, the bulk of time is spent doing the ordinary stuff like retail, eating, travelling and sleeping. It is enlivened and enhanced by the activities which are wonderful and create the need for people to travel in the first place. But, it is how they are treated doing the “ordinary stuff” that turns a pleasant experience into a great experience. It turns a great experience into a magnificent experience and turns the person having it into a voice; a song which trumpets the time that they had when with you. I think sometimes we have it wrong inside New Zealand. We do a great job with our airlines and our airport, and we do a great job promoting the fantastic experiences that can be had, but we don’t do a lot to ensure that the ordinary things are done well. In accommodation we sell beds and showers, TVs, etc. The value added to that is how the customer is treated by those that run those establishments. Accommodation operators are the subject matter experts on their region. They are the first port of call that one goes to when looking for a good restaurant, somewhere to buy a new shirt and tie, a doctor or dentist or any other of the normal activities of life. The accommodation provider knows these things because they are part of the community in which they live. They understand the activities which are the best value, which are the best experiences, which are suited for the young and which are suited for the old. This goes without saying, because we assume that everyone knows this, but I am not sure that we are actually qualified to make that level of assumption. I also believe that making that assumption is not necessarily the correct thing to do. I learnt in retail that marketing doesn’t stop when the customer arrives at the door of the shop. It actually never stops because, by stepping inside the shop and by way of the type of product that they are purchasing, the value of that product and the way they are treated by the staff ensures the work done there will bring them back. Marketing which is only designed to entice customers is a waste of money because the true value of marketing is realised by the whole experience that they have and how they value the purchase. When we look at New Zealand there is a proliferation of small and medium businesses operating in the tourism space, be it accommodation activities, transportation or whatever. In my view they are mostly left to their own devices to come up with their own plan, source their own information and do their own research to help the customers that come through. Little is done to ensure that they are given access to that information. Many of the information providers don’t want to share information and treat it like gold. They hoard it and use it only for themselves. Unfortunately, if they are never asked, then that information is useless. Only trade associations working with their members provide any support, knowledge and education.

We do a great job promoting the fantastic experiences that can be had, but we don’t do a lot to ensure that the ordinary things are done well.

delivery mechanism in tourism; not only the delivery mechanism of the wonderful activities and events, but also the simple things, the everyday things. The things that people spend most of their day doing. These don’t provide photo opportunities. They don’t make great stories. They are hard to encompass in a “famil”, but they are the lifeblood of the business and ensure the ongoing viability, profitability and attractiveness of what we have to offer.

Michael Baines

By Michael Baines, CEO, MANZ

BUSINESS BUILT ON RELATIONSHIPS

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I think as a country we need to carefully address the issues of the WINTER 2013

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m management Sales:

The problem of too many sales leads One really interesting thing about being a hotel trainer is that you get to peek behind the scenes at so many different types of hotel and lodging companies. Regardless of the location, property classification or brand, right now it seems that most hotel salespeople are having similar challenges. One such “challenge”, ironically, is that most salespeople are overwhelmed with inquiries. On the surface this would seem to be a good “problem” to have. Yet too many sales offices have not re-organised their processes to meet this challenge. The “problem” of too many leads is caused by the increasing use of meetings management technology systems and other electronic channels by both professional meeting planners and those planning social and other meetings and events. Many professional meeting planners have migrated to using various networking services to send out their RFPs - request for proposals - often keeping the name of the group anonymous. Those planning social and other meetings and functions also seem to prefer to send their initial inquiries via email.

can then spend more time responding to those that are truly the best fit and hottest leads for their business. If necessary, others can get a more generic, template response or be delegated to a sales administrative assistant for basic follow-up. Here are some additional training tips to help your hotel stand out from its competition. •

Respond promptly to all inquiries, even those for which you have no Doug Kennedy inventory or otherwise cannot meet their specifications. Plans change as meeting details are finalised, and many planners are involved with multiple meetings and thus could be a future prospect.

Pick up the phone! Never respond to a RFP with only an electronic form of communication. Even if you only get through to voicemail, an energetic, friendly and engaging voicemail message will start to make your proposal rise up in the stack. For those specifically indicating they do not want to be called, send a personalised letter or card by standard mail.

As a result, in today’s world planners are inquiring at far more properties than they did not so long ago when inquiring meant placing a phone call to the hotel sales office. Whereas a few years back a planner might phone three to five properties, now at the click of the keyboard they can instantly inquire at a dozen or more hotels. Consequently, accommodation sales staff finds themselves overwhelmed with inquiries. Many accommodation salespeople seem to be handling the challenge of too many leads coming in electronically by trying to respond to them all with equal attention. When leads bottle-neck during periods of peak demand, the end result is slower response times and generic proposals. This levels the “playing field” for all the accommodation complexes contacted and does not allow any particular property to stand out from its competitors.

Train your sales team to sort and prioritise electronic inquiries, especially on days when they are overwhelmed with the volume of inquiries

Instead, accommodation sales managers need to take a step back and re-evaluate the processes in place at their sales offices to make sure they have re-organized to keep up with these emerging trends.

Speaking of the phone, always call to verify that the recipient received the email proposal or contract. With so many of us business travellers reading email on various devices, it is easy for something to get deleted or overlooked.

Send a personal hand-written note. Rather than just sending emails that say “Just checking to see if you reached a decision”, stand out by using the good old fashioned postal service. A handwritten note really means something these days. When was the last time you received one?

Sending a link to property information pages on a website is not relationship selling and does not show you know your product. Nor does it provide any sense of pride and ownership of what you are representing. Instead, provide personalised details along with the link.

Sending a link to an online concierge service does not demonstrate your knowledge of the area and is not relationship selling. Instead, assist with needs-based suggestions and recommendations.

Use “high tech” resources to go “old school”. Rather than just sending an email, use your webcam to record a short video message saying how much you want their business. Or create a fun flash movie using iMovie or Windows Movie Maker.

Use your sales lead tracking system diligently. With so many RFPs coming at us these days, it is impossible to organise tasks using folders in your email server. Always systematically enter the next follow-up action step into your tracking system so that it appears on your daily task list.

Of course it is also important to evaluate the overall revenue opportunity of the meeting or event.

Research the organisation online prior to responding so that you can personalise the response.

Having sorted and prioritised the inquiries, accommodation sales staff

By Doug Kennedy, president, Kennedy Training Network

For those just starting this process, the first step is to train your sales team to sort and prioritise electronic inquiries, especially on days when they are overwhelmed with the volume of inquiries. I call this “reading the lead” just as an experience waiter “reads the table”. •

What is the source of the lead? Is it a direct inquiry? If not, which third party did it come from? Was it through a listing service? A convention and visitors bureau or tourism office?

Are their requested dates during periods of moderate to low demand? Do they indicate flexibility?

What special requests or comments have they mentioned? Many of those who email their inquiries to the sales@yourhotel.com address include in-depth details about their plans that can be used to personalise the response.

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management m Insurance:

What’s keeping you awake at night?

Don’t lose sleep worrying about ‘what if”

WHEN THE CHRISTCHURCH EARTHQUAKE HIT, IN SEPTEMBER 2010, A LOCAL MOTEL OWNER AND HIS LANDLORD WERE INCREDIBLY RELIEVED THEY HAD INSURANCE. On inspection the motel business had minimal damage and clean-up costs while the landlord’s building suffered some superficial damage, which did not need immediate repairs.

Often this is caused because some business owners and brokers can be price focused, but we have found that when a business is thoroughly reviewed and the shortfall in coverage is pointed out that most people are shocked and want the coverage put in place. While price is always a consideration when choosing an insurance provider, placing its importance above having the right cover is not worth it.

Luckily, for both the landlord and tenant there was no need to shut the motel. It was business as usual with no loss of income or rent. However, what the motel owner first thought a lucky escape, some years later turned out to be a significant blow that could potentially put him out of business. Without giving it any thought at the time the motel operator and property owner had arranged their insurances separately with different providers, neither of them brokers. When the landlord decided it was time to get the building damage repaired it meant the motel had to shut half of their rooms. The motel owner contacted their insurance provider to see what cover they had in place. They were advised that as there was no claim with them for the building they were not able to claim for any loss of income. This was a significant loss for the owner of the motel that could have been prevented. With correct investigation at the time of arranging his insurance, and with a professional broker giving advice, both parties would have been advised to note their respective interests and probably had cover arranged together to ensure there was no gap in coverage. When it comes to protecting your livelihood “one size does not fit all” and it is important that a thorough process is followed when you arrange your insurance.

If your insurance and risk management worries are keeping you awake at night go to page 13.

A good insurance broker will only quote on your insurance once they have a thorough understanding of your business and the risks it faces. Your broker should collect all the right information about your business so they can analyse your risks and give you all the information you need to make an informed decision about cover . Any cover provided without this process is often not worth the paper that it is written on. Eight out of ten insurance covers that we review with show signs of inadequate cover or underinsurance, and this seems to be a trend across the country. WINTER 2013

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m management Insurance:

In addition to the motel example, the Christchurch earthquakes have taught business owners many things: Have your business covered with a recognised insurer with good financial credentials. It may cost a little more because they have better reinsurance programmes, experienced underwriters and local claims support but in the event of a major issue the last thing you want is to find you have no cover because the underwriter has failed. Since Christchurch, five underwriters have left our shores and at least three more have stopped underwriting in certain areas of New Zealand, leaving many claims issues and uninsured clients. Inadequate data protection and failure to have good back up offsite. Many businesses were unable to continue trading because they did not have access to their computer or the data on it. Building valuations were often inadequate not allowing for the real costs of demolition. Indemnity periods were too short – 12 months is inadequate Insurance has changed and will never return to before Christchurch standards. Underwriting information with the ability to satisfy overseas insurers is paramount. Give yourself a good night’s sleep by making sure that you have the right covers in place.

The Christchurch earthquakes have highlighted the need to have the right cover for your business.

By Daryl Hughes, Crombie Lockwood

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Choic e Hotels – Your hotels missin • motels g link • resort We like s • apartm to ents • and based think our One time share Fairtra on the out that de range • holida initial Profile Mr Big sales, y parks is pretty Inside so from > • budge t • retirem ent

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management m Photography:

Think of it from the guest’s perspective

A PICTURE IS WORTH A THOUSAND WORDS. PHOTOGRAPHY IS AN ESSENTIAL PART OF SELLING YOUR ACCOMMODATION COMPLEX, BOTH IN TERMS OF DISPLAYING FEATURES AND CREATING THE EMOTIONAL SALE. We all know this but it seems the message is getting lost under the weight of smart phones and the ability for anyone to snap off a half decent image.

Larry Mogelonsky

Standing in between management and guests are the professional photographers and it’s important to hear their point of view. That’s why I approached Darren Edwards, a professional photographer that I’ve worked with in the past, for a quick interview, offering some pointers for managers on what makes for good pictures and how to better prepare a shoot to reduce the budget.

Crombie Lockwood has a specialised insurance solution exclusively available to members of the Motel Association of New Zealand.

Describe your typical hotel photo shoot.

To speak to your local motel specialist email manz@crombielockwood.co.nz or call 0800 276624.

Every accommodation shoot is different, which is great. Sometimes they simply need some updated room shots but others are just opening or have just completed renovations, so these can be much longer. On average, we complete most jobs within a few days. The days can be very long or with strange hours, however.

We’ll meet you at your place - not over the phone.

Unless the complex is brand new, they are always open with guests everywhere, so we really have to take advantage of the overnight times and dawn when things like the lobby and restaurants are typically empty. I love getting that dusk or sunset light but in the evening when that’s happening, so is everything else at a hotel. I bring a lot of gear to most hotel jobs. We always end up shooting a wide WINTER 2013

13


m management Photography:

variety of subjects and often have unforeseen situations, so you never know what you’re going to need. I have acquired enough gear through the years to light up just about anything a hotel can throw at me, indoors or out.

want and aren’t looking at it from a guest perspective.

I can get most of the work done with just one assistant but it’s always nice to have two or more. Having that extra body or two to move gear around the property, through the airports and in and out of rental cars makes the process so much easier. Besides, because of the way we light things, it’s nice to have a dedicated digital tech and a lighting assistant. I completely understand, however, that most times it’s all about the budget, so we work with whatever we are able to bring. Accommodation photography is all about being able to adapt to the situation. It seems there are always unforeseen problems that arise but when we overcome them with creative solutions, it keeps everything on track and the client happy. Extra people always help that process.

It needs to sell the experience of the property in order to entice the guest to want to choose them out of all the options they have.

What are the most important aspects for hotel photography to showcase? Accommodation photography obviously has to showcase the main areas of the property, guest rooms, restaurants and spa. But beyond that, I think the focus should be on the guest experience. Too many times accommodation providers get caught up in what they

The customer wants to envision themselves in the photos, so exceptional photography is one of the most important parts of an accommodation provider’s website.

What steps do you take to prep a guest room? Two words, clean and crisp. In most cases, if the property is prepared, the rooms are shoot-ready when we arrive. We have, however, pressed sheets, fluffed pillows or moved things around for the best composition. The room has to look spotless, so we also hide cords, clocks, cards, menus or remotes to make it look as clean as possible.

How do you go about using lighting and framing to evoke a certain mood or feeling? Lighting is one of the things that sets us apart from many other photographers. We’ll light every scene in a variety of different ways in order to have all the options we want for post-production. I generally see images in terms of how it will be put together, rather than in one shot. This way, we can create just about any look we want after the shoot is over. We like everything in the image to have depth, so lighting may come

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management m

from many different directions. It will often depend on the mood or feel the hotel is trying to achieve. Some really like the over-lit look, while others prefer more of a journalist, natural feel. My favourite time of day to shoot is almost always dusk and dawn. Even when they are not asking for it, I will often just go out and shoot during that time to see what I can get. I like to over-deliver and often these are the shots that can make the difference.

Are there any avoidable setbacks that you typically encounter? The biggest avoidable setback I usually see is simply having the property prepared for us. The rooms need to be spotless and the staff needs to know we’re going to be there. If areas of the property need to be closed, the guests need to know well in advance. A common complaint I see when reading online reviews is that the rooms do not look like they do in the photographs. Do you believe that a room should be as accurate as possible, or are you an advocate of enhancements such as floral arrangements? I believe hospitality photography is about selling the fantasy of the property and not necessarily the reality. When was the last time you got a burger from a fast food restaurant that looked like the picture? The images need to show everything in its absolute best light in order to entice customers to choose that property. There are so many options out there and often the photography on the website can be one of the determinant factors to a potential guest.

Given the extra costs involved, what’s your stance on using models/people to showcase the room, dining area or lobby? Personally, I like using people for some of the scenes. I think it gives a mood and feel that a static image just can’t match for certain areas of the property. However, there are usually corporate guidelines to consider in terms of using models and cost is always a factor.

Is there anything specific that you do to match accommodation provider’s photography with their marketing strategy and target demographics? I always try to have a creative meeting with the accommodation provider or agency people prior to the shoot to get an idea of the look and feel they are trying to achieve. This can make all the difference in the planning process, not only in the shot timing, but also in making sure we are consistent with current work and the target market.

By your estimate, what percentage of your photographs are used exclusively for the Internet? I would say the majority of our work ends up on the Internet sooner or later. In this day and age of photography, we generally give, and most clients expect, unlimited rights. This gives our clients the ability to use the images anywhere they want for as long as they want. Accommodation providers are in constant need of new photography, so the life of an image is relatively short anyway.

How has the social media changed the nature of your business?

Some shots work great without people, allowing the viewer to imagine themselves in that scene, while others are meant to show the atmosphere and really need people to complete it.

Social media hasn’t really changed my workflow in terms of making beautiful pictures but it’s certainly changed the way we view and share them.

Most of the jobs we’ve done include both. Besides, the way we shoot with people, we generally get the room or scene without them too, so the client can get both options. It does take longer and costs more but the upside is a mood you don’t get otherwise. Smiles mean a lot.

We post a new picture each day on Facebook then add links to Twitter and LinkedIn. I think it’s just easier to get your work out there than it has ever been before.

What is your position on using hotel staff in photography? I always prefer to use professional models whenever possible. They bring a comfort and natural look to the images you just can’t get from hotel staff or friends. They’ve usually done it before, are not shy and take direction very well. You can also predetermine your demographic, clothes choices and make sure they have the right look to give the feel you want. With everyone else, you are sort of at the mercy of what you can get. We always prefer to have as much control as possible, but also completely understand when the budgets don’t allow it.

That being said, everyone with a camera is a ‘photographer’ these days, so in order to stand out as a professional, we have to do things that every other person with a camera can’t do. With intimate knowledge of light and equipment, a trained eye and the experience of major jobs to deliver under pressure, the need for professional photographers will always be there. Most hotel shoots are far too important to the survival of the property to be left to amateurs. Having a good camera gives you a great picture about as often as an oven makes a great meal or a keyboard writes a great novel. It will always come back to the skill of the user. By Larry Mogelonsky, president and founder of LMA Communications Inc. WINTER 2013

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m marketing Utilising Guest Data:

The risks of data sharing

Most managers may be unwittingly breaching the Privacy Act simply by outsourcing their marketing.

RECENTLY SEVERAL MANAGERS HAVE BEEN CAUGHT OUT BY UNWITTINGLY HANDING OVER THEIR SENSITIVE BUSINESS DATA TO A THIRD PARTY BELIEVING THIS WAS NECESSARY FOR THE SUPPLIER TO UNDERTAKE MARKETING FOR THEM. Some of the most experienced managers of all are willingly entering into these transactions without realising the obvious risks involved with this. Almost daily we are contacted by our clients asking how to export their critical business data to a third party to reduce the cost the company will charge them to undertake their marketing. Many of these companies are asking the manager to enter into agreements with them to use their products and services for a specified fee. They offer reduced rates if the client list is provided to them each month. While this may seem innocent enough, what managers may be overlooking is that these providers are gaining access to the property’s complete customer client base on an ongoing basis. Marketing companies seem to be springing up at a rate of knots, several of them with no experience in this field or with any industry references at all. Yet managers are happily handing over details of every guest that ever stayed in their resort without thinking twice. 100 per cent of business accommodation turnover, market segments and client personal details are now in someone else’s hands. Operators need to ask themselves whether they would give this information to a stranger off the street. If not, then they need to urgently review this practice. Take a step back and look at the whole picture carefully and thoroughly, remembering at all times business protection is vital in every decision made.

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ACCOM MANAGEMENT GUIDE

Managers need to start asking themselves “Who can benefit from this data, how else could it be used?” They also need to ask, “Who really are these people that I’m revealing the whole of my business to?” A better solution is to simply outsource the creation of a newsletter if need be, after all not everyone is a copywriter or graphic designer, and then mail merge it directly from their property management system. This way they have a polished product without exposing their business. There are numerous free tools available on the market that allow for the creation of a newsletter with the assistance of ready prepared templates. Simply pick the preferred style and fill in the content. There are many consultants who will assist in learning this product for a small fee and even hold a managers hand through the first couple of newsletters. The cost of these professionals is far less than a single newsletter through a marketing company and at least the manager knows the content is personal and pertains to their own property. Holiday makers have likely stayed in other properties in the same location, receiving a generic newsletter with a different photo and perhaps one paragraph personalised is not a professional image that operators should portray. In addition, does a resort operator have the permission of the guest to forward their personal details to a third party? The guest may have agreed to receive communication from the resort but have they agreed for their information to be shared with unknown third parties. Most managers may be unwittingly breaching the Privacy Act simply by outsourcing their marketing. Remember, what puts the dollars in your pocket are your guests, don’t risk sharing them with anyone else. By Sylvia Johnston, Hirum Australasia


marketing m Hotel Franchising:

The hotel franchising growth opportunity SINCE THE 1960’S, FRANCHISING HAS BECOME A GLOBAL PHENOMENON. IN THE USA ALONE, IT IS A $2 TRILLION INDUSTRY. The lodging sector was one of the first industries to see the merit of “being in business for yourself, but not by yourself” as franchising is often described. Chains like Holiday Inn initially drew on the desire of ambitious individuals and companies to build and operate franchised accommodation facilities to service the needs of travellers on major highways. Today, whilst the hotel sector still only accounts for a small percentage of all franchised businesses in the USA, franchising remains an important means of developing hotels there - the 25,000 franchised accommodation establishments in the USA have been estimated to account for over two thirds of the country’s entire room stock. In Australasia, hotel franchising has taken longer to become established, in part because of the limited number of suitable candidates with the experience, financial resources and commitment necessary to become a franchisee. There has also been an understandable reluctance by the major hotel companies to expose their brands to the risk of reputation loss in the hands of inexperienced hotel owner operators. Hotel companies have also been reluctant to franchise because they have not needed to, given their success in convincing most hotel owners to allow their brand to manage hotels for the owner under a Hotel Management Agreement (HMA). Under a HMA, management decision making primarily remains with the hotel company, providing them with a reliable means of protecting their brands, whilst also benefiting from a low risk, fee earning opportunity. Despite the slow start, the franchising of hotels in Australaisa is now on the rise. At a time when the viability of hotel development through the traditional build-own-outsource management model remains challenging, development through franchising is increasingly an option being considered by some developers and investors – and it now potentially provides an important vehicle for the future growth of the accommodation sector in this country. Increased interest in hotel franchising is being driven by the success and caliber of some of the leading accommodation brands now involved in the sector here. These include highly regarded international hotel brands such as Accor and Choice, as well as local brands like Quest that has flourished in the growing serviced apartment market. Quest’s model has drawn particularly strong interest because it entails both the franchising of its brand, as well as a lease of the serviced apartment property under its brand, thereby enabling a property investor to derive a fixed lease income, rather than be subject to the variable (and higher risk) income streams it would have to rely on without a lease. Quest’s success in convincing local investors and potential franchisees about the merit of its business model is demonstrated by the fact that it now operates over 150 Quest properties throughout Australia and New Zealand. Quest’s founder and Chairman Paul Constantinou, describes the benefit of franchising this way: “Owning a business is tough, but I think franchising takes away some of the risks. It sets disciplines in place, and it assists people in driving their business knowing that there’s someone there guiding them through the processes”.

The benefit of brand support is critical to the success of franchising, according to Horwath HTL Australia Managing Director Mr John Smith. “Franchising provides a way of accessing not only a quality hotel brand, but also industry expertise, essential systems and other support such as training from the chosen hotel company franchisor”. He added that many of the world’s leading hotel brands are now being made available for franchised accommodation properties. Trent Fraser, Chief Executive Officer of Choice Hotels Australasia, agrees on the importance of control and support “franchising enables hotel owners to have greater control and input over the day to day operation and management of their business – and with more than 6,200 franchised hotels and almost 500,000 rooms in over 30 countries, Choice Hotels’ success is proof alone of the virtues of hotel franchising” However, the success of franchising for hotels also critically depends on the quality and experience of the franchisor and its brand. Simon McGrath, Chief Operating Officer of Accor Pacific noted that whilst “franchising is becoming more relevant in the market, it requires a strong international brand, loyalty and comprehensive distribution systems to deliver results for franchisees.” To review the state of hotel franchising and its prospects, and to assess some of the key issues for consideration by hotel developers, franchisors, franchisees and lenders, a new event called Hotel Franchise World was held in Sydney in July 2013. Hosted by Horwath HTL and legal advisers Ashurst, the event brought together senior executives in the accommodation, real estate and property development industries to hear, learn from, and network with franchise and accommodation industry professionals experienced in this increasingly important form of property ownership and management. Delegates at the event were provided with findings from the first ever survey in the region of the franchised accommodation sector, which was undertaken by Horwath HTL. Hotel Franchise World was a pre-event to HotelsWorld Australia New Zealand, the region’s leading event for accommodation industry CEO’s and other senior executives involved in the ownership, management and development of hotels, resorts and serviced apartments. Both events are part of Hotels Megameet, which comprises 5 co-located and linked industry events at which over 1,000 delegates were expected. WINTER 2013

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m marketing Subsection:

Headline

YOUR MISSING LINK

C

hoice Hotels has over 35 properties across New Zealand and another 230 properties open or under development across Australia and Singapore, represented by the Econo Lodge, Comfort, Quality and Clarion brands and the Ascend Hotel Collection. Choice Hotels is the largest pure franchised, mid-market hotel group across New Zealand and Australia, providing exceptional support to properties by working together to increase overall business.

Econo Lodge City Central, Auckland

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Comfort Hotel Wellington Wellington

ACCOM MANAGEMENT GUIDE

Quality Inn Hurley’s Queenstown

Wai Ora Lakeside Spa Resort Clarion Collection, Rotorua

Metropolis - Ascend Hotel Collection, Auckland


marketing m

WHY CHOICE? Subsection: National brand presence Fly Buys, Air New Zealand and Qantas Frequent Flyer partnerships Powerful online distribution channels Corporate & government tender opportunities National and regional marketing campaigns Preferred status with key corporate travel agents In-house call centre with New Zealand specialists

Headline

Choice Privileges loyalty program Cost-effective GDS connectivity Dedicated operational support Advanced technology and systems to grow yield In-depth training programs Zero commissions for Choice reservations (excludes travel agent & loyalty cards)

WHAT OUR FRANCHISEES SAY:

C

hoice provides a great level of support, with access to all the resources you’d expect from a global chain. Being part of Choice helps small- and medium- sized hoteliers play a bigger role within their local and/or regional market. Choice are very engaging with all Franchisees and adapt well to trying to find solutions to everyone’s markets. Choice helps Franchisees connect and develop

W

e joined Choice Hotels because we identified we needed to lift the profile of our hotel. After making an initial enquiry to Choice, we met with a member of the development team who presented us with well explained material, outlining the advantages of being a hotel in the Choice System, the service levels provided and the systems available to us.

relationships with key accounts, consortia and inbound operators – all the resources are there, and it is up to the Franchisees to use if needed. The business generated by Choice is consistent and helped us to gain (and maintain) market share for both hotels.”

Olivier Lacoua – General Manager, Quality Hotel Wellington & Comfort Hotel Wellington, Wellington The support that Choice has provided us to date has been excellent and above our expectation. We’ve found the Operations team to be very helpful, and the Sales and Marketing teams have been really supportive and accessible. Overall, it’s been a great move for us to make.”

Kevin Smith – General Manager, Quality Hotel Elms, Christchurch

W

e offer operators and investors like you the support and backing of Choice’s powerful brands and global network. Our collective goal is to increase the properties’ room night demand from key market segments including corporate, government, domestic and international, resulting in higher room rates and long term asset value. With four distinct brands and now Ascend Hotel Collection membership, ideally suited to unique, boutique and upmarket properties, there’s no better time consider taking your property to the next level. Contact me today for a Choice Hotels information kit and a no-obligation discussion.

Brett Salter Senior Development Manager NZ toll free number: 0800 453 069 Email: brett_salter@choicehotels.com.au

Web: www.choicehotels.co.nz

WINTER 2013

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m marketing Promotions:

Making an offer they can’t refuse HAVE YOU EVER ADVERTISED AN OFFER THAT FIZZLED? IT LOOKED GOOD, IT SOUNDED GOOD, BUT SOMETHING JUST DIDN’T QUITE CLICK IN THE MINDS OF YOUR TARGET MARKET. Don’t be discouraged, crafting an offer is hard work! It requires you to make a compelling statement that immediately offers value, and fit it all in a sentence or two. Let’s look at an example of a great offer and why it works. An example of a great offer: “Kids under 13 eat for free on Monday’s” What makes this a good offer? It’s targeted This isn’t an offer for everyone. In fact, if you don’t have kids you will probably avoid the place like the plague on a Monday. This can seem counter-intuitive because you’re going out of your way to exclude people who could use your services, but the old saying, if you try to please everyone, you’ll end up pleasing no-one, is dead right.

The value is measurable Free = $0. Anyone reading that offer knows exactly what they’re getting. Contrast this to the common “Get 20 per cent off your next purchase” offer. What is 20 per cent worth? Unless there’s a value attached, or your customers are very well informed, a generic discount is unlikely to get much traction. People are adverse to risk, it’s inbuilt. If the value in your offer isn’t obvious it introduces an element of risk to the purchase decision. If making a decision or taking action is risky, people are much more likely to play it safe and do nothing.

It’s specific Give people a mental checklist that they can use to compare the offer against their circumstances. In this case a passerby could look at the offer and mentally calculate “I have kids (check), they’re 7 and 9 (check), it’s Monday today (check)” If your offer ticks three boxes, you’ve probably got yourself a sale. When your designing your offer, try to cover the Who (your target market), the What (what they get/save) and the When (How long do they have to make a decision).

It hits on a common pain point Dinner out with kids in town can be a daunting proposition, especially if they’re young. Implicit in this offer is the idea that the restaurant is family friendly. Take a look at your target market, what problems do they have that you can solve for them? This often takes a bit of research and experimentation, if you don’t get it immediately that’s ok. Feedback is invaluable here, ask people who do take up your offer what drew them to it. If possible find out what the others would have preferred instead.

This isn’t an offer for everyone, if you don’t have kids you will probably avoid the place like the plague

to everyone. Make sure people know what they’re getting or saving. For example:” Stay with us and receive 20 per cent off. Do they know what your usual rate is so they can work out what they’ll be saving? Uncertainty equals no sale Be specific, lay out the criteria in the offer itself. This doesn’t mean you can’t have a “Conditions apply” underneath, but do include the main points in the offer. If you can, take a look at your target market. What do they struggle with? What problems do they have? If your offer can take away a problem, you’re on to a winner. Test your offers. Gather feedback. Without a little experimentation, you’ll never know what works and what doesn’t.

When you’ve got your next offer in mind, here are a few key points to consider:

When you’re creating your next deal think about the last time you were swayed into purchasing something because of an offer? What was it? What did you feel were the key ingredients that made you take the next step and purchase? Your own experience and the simple steps in this guideline will lead to creating offers your customers can’t refuse!

Pick a single target market. Don’t water your offer down trying to appeal

By Stephanie Haami, Motel Guru

Key points

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ACCOM MANAGEMENT GUIDE


marketing m Bookings:

I’ll just award myself five stars ONCE UPON A TIME, WE HAD ONE SOURCE TO CERTIFY THE HOSPITALITY EXPERIENCE - THE AUTO CLUBS. We now have a cornucopia of evaluators, systems and concerned reviewers, lending to massive confusion and brain melt in the mind of the consumer, according to John Hendrie, customer experience representative for LRA Worldwide, Inc. “It used to be so easy to get a handle on a ‘booking’. But, the consumer, who largely is flying blind in many cases, when booking reservations or gathering information to make a decision, must decipher the code when looking for reliability of a property – that it is clean, safe, secure, and comfortable, with reasonable service, product and facility. That reliability nowadays is fleeting,� says Mr Hendrie. “There are rating services which rely solely on guest feedback. Others evaluate businesses based upon level of amenities, location, size, price or just former reputation. Some businesses choose to rate themselves (no two stars here). Very few of these services actually visit the property, which is the ultimate test. A hands-on, physical inspection of a property, using a market driven, legitimate diagnostic assessment tool is really the only means to substantiate the pending experience. Certainly customer reviews also have a place, if trends can be uncovered. All others are fluff, and actually devalue the experience and fog up the ‘brandscape’,� says Mr Hendrie.

“An accommodation decision is not seen as critical as a purchase of a car or major appliance but yet we all are brand driven, and brands must stand up to critical review. Plus, brands validate those standards constantly. This is where the flag properties, chain restaurants and retail companies have an edge over the independents, for some level of standards is integrated into their brand. Essentially a visit to the chain hotel or restaurant in Auckland will be pretty much the same as their operation in Dunedin. There also needs to be some accountability from the organisations that represent destination management. Too often they see their mission as strictly marketing and promoting travel to a particular area. They tend to wash their hands of any responsibility for the experience once there. ‘Welcome and good luck’. “The consumer has one precious commodity – time. And, this is why an experience becomes successful or not. They do not always give due diligence to their travel plans, other than flight schedule and usually price. They do depend upon us to paint a legitimate picture and deliver. We are ultimately responsible for the state of hospitality and there must be some credibility to the product and service we represent. When standards are low and uneven, consumer satisfaction follows that tide. Without standards you cannot measure performance; you have neither accountability nor reliability. We need to elevate the hospitality bar!� LRA Worldwide is a leading research and consulting company in the emerging discipline of customer experience management. It uses a range of quality assurance, mystery shopping, research, training and consulting solutions to help accommodation providers.

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r refurbishment Bathrooms:

Bathrooms, more than just water

GUEST SATISFACTION IS PARAMOUNT FOR ANYONE DEALING IN ACCOMMODATION. LIKE ANY INDUSTRY YOUR LAST ‘JOB OR CUSTOMER’ CAN MAKE OR BREAK FUTURE PROFITABILITY.

www.plumbingworld.co.nz

WHEN QUALITY MEETS EFFICIENCY. THAT IS TOTO.

New customers luckily enough give you the opportunity to make an allimportant first impression and existing customers can be off looking for a new accommodation provider when things aren’t right. Out-dated fittings, difficult to use taps, or an annoying drip can soon dampen that all important favourable long-lasting impression. Modern, clean-lined bathroom ware and fittings can make a huge difference to the all-important impression of one’s overall accommodation experience. It isn’t until you have a good or bad experience that you realise how this impacts. The bathroom is a place where even a modest investment can pay off ten-fold in the long term. And who knows what quality they might have seen elsewhere, giving your customers a feeling of luxury in what might otherwise be fairly ordinary premises is something worth considering. It’s satisfying to know that New Zealand hotels and motels have bathrooms as good as almost any type of accommodation, worldwide, and we are fortunate to have several companies that provide products that are right up with the very best in international standards when upgrades are required. Daniel Keenan, advertising and promotions manager for Plumbing World says the bathroom is always going to be the key focal point for both residential and formal accommodation alike. “Without a doubt a good bathroom and quality fittings can really make or break a room, it’s a whole lot more than just ‘water-in’ and ‘waste’ out, especially when you get to experience it how it should be”. Here in New Zealand we have tapware by Methven, designed and manufactured for local conditions. We also have access to top of the line European sanitaryware, perfectly suited for high-end tourist and business accommodation alike.

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Mr Keenan is very aware of international design and conservation trends. “The focus is three-fold – space maximisation; easy-cleaning and maintenance; and water conservation. With water usage increasingly monitored, good WELS rated tapware, water-flow limiters, and a growing focus on grey water recycling will undoubtedly be top of mind in future residential or commercial projects. We’re seeing demand increase for more wall-hung vanities, back to wall and wall-hung toilet suites, and in-wall cisterns. People want and expect a designer edge, a good use of space that doesn’t harm the environment”. By Dan Keenan, Plumbing World

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ACCOM MANAGEMENT GUIDE


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Square, Christchurch

www.dalman.co.nz


r refurbishment Furniture Packages:

Budget is not a dirty word! NOWADAYS BUDGET DOES NOT MEAN FILLING YOUR ACCOMMODATION COMPLEX WITH BORING PIECES OF CHEAP FURNITURE. Gone are the days when budget furniture meant mean and nasty (and came in a box with a set of complicated nonsensical instructions and a marriage counselling manual...). Today it can mean anything from eclectic chic to inspired replicas of expensive originals. Today we all have access to designer style, and everyone can create their own ideal interior look and feel. Designer furniture pieces are no longer the domain of the wallpaper set – and we now have access to once hard to find classics from Scandinavia and Europe. It is time to embrace this culture of everything and work with it to tailor furniture solutions to meet every budget and style. Budget furniture packages do not need to be horrible and designers have risen to the challenge by crafting fantastic and stylish packages for a tight budget. Furniture packages are the most efficient way to create a cost effective, cohesive and stylish look from scratch. Whether it is for hotel, motel or an investment property, having someone else put the look together removes a lot of the uncertainty and emotion associated with furnishing guest rooms. Working with a package specialist also has its cost benefits. Most furniture package companies work directly with suppliers and manufacturers so that you don’t have to pay retail prices.

Financing:

Refurb decisions made easier by finance alternative I WAS APPROACHED BY A VALUED CLIENT WHO WAS LOOKING TO REFURBISH THEIR PROPERTY AND, AS IS MY NORMAL PROCESS, WE MET ONSITE TO DISCUSS THEIR NEEDS.

At the end of the five years, you own the product after a token payment of $1.

During our walk through and discussions about the look and feel they wanted, the type of clients they accommodate and their clients’ expectations it became apparent that the property was also in need of building works as well as the furnishings refurbishment. Obviously the property owner was keen to do it all and ensure that they kept up with the new properties and those in the area that had undergone refurbishment, however how can they do this without affecting their cash flow greatly or going to the banks and jumping through the hoops they require?

Improved cash flow

Reduced operating cost

No upfront capital outlay

Reduced interest costs

More than competitive against bank rates

One monthly invoice

No deposit or application fee

Upgrade now allowing you to maximise room rates immediately. Purchase what you really want without having to compromise

Payments can be up to 100 per cent tax deductible. (Please seek advice from your tax agent or advisor to confirm level of tax deductibility)

The answer: A commercial hire purchase option. What was available to the property was to be able to finance the FF&E component of the refurbishment thus allowing them to use the available cash on building works updating room layouts, joinery, carpets and the building’s exterior. I was able to include the design component, furniture, appliances and TVs, lamps, window furnishings, crockery, cutlery, beds, bedding, artwork and installation in the commercial hire purchase model. This also allowed the property to purchase higher quality product then they would have perhaps considered should they have paid for the refurbishments in one full payment. The commercial hire purchase option allows accommodation providers to break down the payments into monthly instalments over a five-year period.

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Some of the benefits of this offer are:

The team of interior design specialists worked with this client to specify sizes and materials used to construct the individually designed furniture pieces and selected fabrics and accessories to accent each piece. I was able to provide 3D renders of each room type. This way the client was able to see what the completed rooms would look like before they were fitted out. This is a great design initiative, allowing adjustments to colours, sizes and positioning as each piece is rendered to scale in a room which measures exactly. Changes can be made easily and it is a great sales tool if you are developing a new property where apartments are sold to independent investors. By Ned Vernon, Guest Commercial


refurbishment r Subsection:

Headline

DANSKE MOBLER COMMERCIAL

Our philosophy is simple – exacting standards and meticulous attention to detail. From the boardroom to the restaurant to the hotel bedroom, Danske Møbler can design and manufacture customised upholstered and wood furniture to

Excellence in New Zealand made furniture since 1958

your specifications, regardless of how big or small the project may be. For unrivalled quality and craftsmanship, along with the confidence of the project being completed on budget and on time, talk to Danske Møbler first.

FACTORY AND HEAD OFFICE: 983 Mt Eden Road, Three Kings, Auckland P. 09 625 3900 F. 09 625 0903 E. johnv@danske.co.nz

www.danskemobler.co.nz WINTER 2013

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r refurbishment Furniture Packages:

Engaging someone to take care of every last detail does not mean that you have to relinquish control

Sometimes a large scaled piece becomes the hero of the room, allowing the more basic pieces to disappear and not fight for attention. But how do you put it all together so it doesn’t look like a designer garage sale? The refrain ‘what do I like, is this me, how big should the pieces be, does it match, do I have time’ resonates with most people. The idea of schlepping from supplier to supplier, arranging deliveries, matching colours and finishes, checking sizes and stock and getting tangled up in the detail is often too daunting. Sometimes it is best to hand those headaches to someone else. The expertise in putting a room designs together, let alone a whole resort or motel, requires skill in spatial awareness and restraint. Most people struggle to visualise the size of a room without furniture in it. Spaces shrink without anything to bring them scale, so people often make the mistake of over sizing furniture or having too much. Less is definitely more in a tight space. Engaging someone to take care of every last detail does not mean that you have to relinquish control, unless of course you want to. And that’s okay too. A good concise brief, a colour preference, some ideas of key pieces and a budget is all you need to get the ball rolling. A good designer or furniture package specialist will provide you with a full package list, layout plans and some suitable options. Working to a budget is not difficult and most companies specialising in this area are familiar with parameters clients often place on the brief. You also want to make sure you get the best bang for your buck. It is much better to manage the fit-out effectively, and have something to fulfil the requirements of each area, and then add splashes of colour, accessories and art works to bring the space to life. Working with the right team will ensure this is all managed effectively for you. The other thing to keep in mind when working to a budget is the ability to make your property stand out from the rest. This is especially true for accommodation complexes. Considering that a complete fully furnished property can have up to 250 individual items in it – it is easy to blow the budget on the invisible things. Working with a specialist ensures that funds are allocated appropriately and you spend resources where they work best for you. Having great images of your finished property will also give you an edge, especially if you are in a competitive rental market. Working to a budget can also mean editing what you have and adding selected items or colours to the mix. Mixing colour and scale are a great way to give a room personality and can add an element of style.

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When refurnishing on a budget it is good to set some realistic parameters and work out what your criteria and objectives are. When weighing up the pros and cons, don’t forget to factor in the time and effort it takes to source, manage and deliver all of the products as well as book lift access and cleaners, assemble furniture items, put it all together, remove the rubbish, take labels off everything, tune and program the TV and clock radio...and all the rest! When you add it all up, sometimes it is best to hand it over to someone else to take care of every last detail so all you have to do is move in! Budgets are often a great catalyst for innovative ideas and with the right team around you, working to a budget to create a great look for your property is actually pretty simple. Creating the perfect furniture package can ease the stress and frustration of doing it bit by bit – and is often a great way to manage costs. Some tips: • Don’t fill your space with too much stuff • Do use a neutral palette and add colour through smaller items and accessories • Don’t forget that spaces look smaller when they are empty • Do factor in all costs before when setting a budget


refurbishment r Maintenance Programmes - Painting:

Extend the paint life on your building

PAINTING MAINTENANCE PROGRAMS ARE NOT UNIQUE IN THE CONCEPT OF MAINTAINING BUILDINGS AND STRUCTURES. First, you have to define what is a painting maintenance program and secondly what benefit does it provide to property owners.

Definition In brief a painting maintenance program is constructed over a set period of time, generally in years. It will in most cases consist of a full repaint followed by annual paint maintenance services which, if external, will include cleaning of soiled painted surfaces and painting of any painted surfaces that have been damaged by normal wear and tear. The cleaning component will in most cases include detergent washing of painted surfaces to remove dirt and grime and dry cleaning using a soft broom to remove cobwebs and dust where washing is not appropriate. The external cleaning is an important part of the process of maintaining a building as it is the build-up of salt, dirt and grime over time that will break down painted substrates. A simple analogy is ‘we clean our cars regularly to protect the duco so why would you not clean your painted building on a regular basis’ especially when you consider the cost difference between a car and a resort complex. It is a well-known fact that if you wash your building externally every year the life of your paint work will be extended by three to four years. Once upon a time, paint manufacturers never used to mention the need to maintain your paint work, now they do as their warranty is linked to maintaining painted surfaces. It is no secret that the environment we live in has changed in regards to climatic conditions, pollutants in the air and the effect of acid rain impact on painted and pre-finished surfaces so it makes sense to wash your building on a regular basis.

Higgins Coatings providing innovative painting solutions

Whatever it takes Higgins Coatings is a private company operating throughout New Zealand BOE"VTUSBMJBsince 1949. Higgins specialise in the painting of existing buildings and their ongoing painting maintenance requirements. We combine decades of experience, training, modern technology to provide practical painting solutions.

General Painting Maintenance Painting Specialised Painting Anti Graffiti Building Repairs Specialised in High Access Work Health, Safety and the Environment XXXIJHHJOTDPBUJOHTDPO[ info@IJHHJOTDPBUJOHTDPO[ WINTER 2013

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r refurbishment Maintenance Programmes - Painting:

Paint maintenance is the last step of the maintenance process where by any painted surfaces that have been damaged by normal wear and tear are sectionally repainted to an architectural break to ensure uniformity of appearance. Nothing looks worse that patch painting, so it is important that the painting extends to a break line in the building to project a uniform finish. A typical painting maintenance program will be over six to seven years depending on the location, consist of a full repaint in year one and annual paint maintenance services on the anniversary of the initial repaint. There of course will be variances to the above; for example if you have a group of buildings like a resort or retirement village that are in varying degrees of condition, your program will be structured accordingly with the repaints spread over the program - no point painting everything in the first year if does not need it. The only exception to this would be if the customer wanted to implement a full colour change.

The Benefits What are the benefits you may well ask - the logical one is that you will extend the life of your painted surfaces and therefore save yourself the cost of regular repainting and possible building repairs where the substrate has broken down due to moisture ingress caused by your paint work breaking down.

If you wash your building externally every year the life of your paint work will be extended by three to four years

The other stand out benefit is that your building will be maintained at an acceptable level that does not detract from its appearance. As we know first impressions count so for a resort, retirement village or motel, appearance is important. Depending on which company you engage to put in place your painting maintenance program, there are a number of payment options to consider: first, there is the even spread of payment approach that divides the total cost of the program evenly over the term of the contract. This is a simplistic option that makes it easy to budget for and is of great benefit when the facility is very low on funds and needs the job done. This system is generally a lot more expensive as it has an interest factor built into the price and “indexation� or rise and fall when calculated over the life of the program can increase the overall cost by up to 25 per cent. The other payment options include paying a higher percentage in the first year to lessen the on-going payments in the latter years, or the standard pay as you go option where you pay the exact value for the work each year. Both these options are far more popular in strata buildings where there is a sinking fund and access to a greater amount of cash to pay for the works. The added benefit of paying for the work each year is that the contract becomes a performance based agreement, as no money is owed it can be terminated without additional cost at any time which provides greater flexibility.

Suitability When considering a painting maintenance program approach to your building, ensure that it is beneficial. For example, a high rise apartment building generally would not suit a standard painting maintenance program unless it is close to the sea and susceptible to salt air build up. In this type of situation, full building washes can be tied in with high inaccessible window cleaning to minimise costs. With high rise buildings that are not close to the sea, it not so much the repaint but the annual paint maintenance that has to be considered when it comes to accessing the building. Put simply it would be just too expensive to maintain all the building every year, hence you would have to compromise and only maintain ground level areas and internal common areas. The majority of buildings and structures in the accommodation sector would suit a painting maintenance program. The main factor is that it must suit your requirements and be structured accordingly to your benefit not the contractors. By David Roney, Higgins Coatings

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housekeeping h Bed Linen:

supplier profile BRITANNIA TEXTILES LTD

All about sheets SHEETS AND PILLOW SLIPS IN THE COMMERCIAL WORLD ARE MOSTLY A BLEND WHERE COTTON IS COMBINED WITH DIFFERENT LEVELS OF POLYESTER - A POLYCOTTON. The polyester makes the sheet stronger, quicker to wash, and in less need of ironing. But cotton does feel good, absorbs moisture better, and takes whiteners better, but conversely will rip easily. Generally cotton will shrink more, but if subject to undue heat polyester will shrink very badly and remain shrunk – remember polyester is plastic and will change shape. For all of the above reasons most commercial sheets are a 50/50 mix though a compromise of 75 per cent cotton with 25 per cent polyester is increasingly popular (or it might be 80/20). We call this cottonrich.

Thread count A lot of rubbish is talked about thread count with some bizarre and silly claims made for high numbers. A maximum of 312 thread count (tc) is perfect as at this level it still has an open enough weave to breath well and be easy to process.

Sateen stripes for top shelf properties

I

f you want something special for a top shelf property, or maybe as a top sheet, the latest trend is a sateen striped sheet with a high thread count. This makes a beautiful sheet that is comfortable, and distinct, whilst still of a high commercial standard for easy processing and a long life. The trend is to avoid the duvet cover/ bedspread altogether and instead use an uncovered quilt with an extra sheet on top; hence it is called three sheeting. But a flat white sheet on top of the bed is, well, rather plain. That’s where the Sateen stripes come in – they look beautiful as a top sheet only (with plain sheets in the bed) and feel fantastic when used for all three sheets and pillowcases. At Britannia Textiles we’ve settled on a wide 28ml stripe on a purely subjective basis – it simply looks and feels really good with a real shine, extra depth, and an impressive luxurious finish. Called Douceur, our 312 thread count, 28ml stripe sheeting is stocked in flat sheets and envelope pillowslips. It’s what I sleep in - and I get a very wide choice!

A bog standard commercial sheet is usually 180tc and a better one often 250tc. Top ones, usually with a sateen stripe, are around 312tc.

Britannia Textiles

All these thread count measurement use a metric 10cm box which is the new commonly used standard.

Commercial suppliers of Superior Bed Linen Douceur — for when you need the best.

Thread count is not the only sign of a good sheet. What you don’t know is the thickness of the thread used, the quality of the cotton and polyester, and the quality and type of loom it is made on

• 28ml sateen stripe • 312tc • Sheets and pillowcases

• Match with our Egyptian cotton towelling

www.britannia.co.nz

0800 800 366 PO Box 113, Nelson

WINTER 2013

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h housekeeping Bed Linen:

Tip - to convert metric thread count to old inch thread count divide it by 1.25. But thread count is not the only sign of a good sheet. What you don’t know is the thickness of the thread used, the quality of the cotton and polyester, and the quality and type of loom it is made on. For instance we make a top end striped sheet that must be made on modern air jet looms and so is made in China where they have the latest equipment. Also the mix of cotton/polyester becomes less important the better a sheet is. Our top sheets are 50/50 but you would think they had more cotton in.

Still want cotton? We no longer even make higher thread count cotton sheets as the newer p/c blends are just so good. But others do, so if you are determined, and can do the ironing, go ahead – it does make a nice sheet. If you’re going top-end, certainly for 4 to 5 stars, choose one with a sateen stripe around 312tc. This will take extra time and resources to process but is expected of you. This can also be used as a top sheet when 3 sheeting.

3 sheeting?

If you’re hiring, which we strongly advocate, then simply feel the sheets and judge the service. If you have the time, equipment, and energy to do your own sheets here’s some help choosing.

Yes 3 sheets. Only 3 years ago we still sold lots of duvet covers, now we sell almost none as all those customers have gone to 3 sheets. Simply they use a third sheet on top of the whole bed – with the pillows on top and often a throw over the bottom. To do this you need something other than a flat white sheet hence the growth of striped sheets. Guests now know the top layer is freshly laundered and clean.

Can you iron?

Outsourcing your own sheets?

If you don’t want to iron the bed linen then the answer is simple; you need a better Polyester/Cotton blend of around 250tc with high quality production. This will have less memory and will crinkle less.

If you will be outsourcing the washing of sheets that you buy, do check that there is a laundry locally that will wash your goods – big ones simply can’t wash what we call customer own goods (COG). If they can wash them check what sheets they can process and get their recommendations.

So how to choose?

Here’s how to manage without ironing: Always remove from the wash immediately and under-load the dryer so they never get squashed. Remove from dryer as soon as you can – very slightly damp is best - and fold immediately. If you sun dry bring in before fully dry and spin quickly.

THE NAME YOU CAN Now available at Southern Hospitality

WASTE • CLEANING • TROLLEYS

Hiring Most laundries hire out a polycotton blend – either polycotton or maybe cottonrich. Most have a standard 180tc and some offer an upmarket alternative of a striped sheet with a high thread count. A few private laundries offer a middle ground of around 250tc. But the test is to see and feel the product and look at the service and reliability they offer, and don’t hire on price – processing sheets costs money and laundries invest millions in equipment – good ones can’t do cheap!

Would you sleep in them? Guests rarely comment on creases in linen but they do comment on comfort. It is essential guests get a good night sleep and are comfortable in the bed. I’ve slept in hotels with sheets so stiff and shiny with age they were unpleasant. The owner/manager would not sleep in that bed so why should I? SOU

HOS

THERN

P I TA L I T Y LTD

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0800 503 335 • www.southernhospitality.co.nz 14 branches nationwide

ACCOM MANAGEMENT GUIDE

Sleep well. By Tim Monck-Mason, Britannia textiles Ltd


housekeeping h Subsection:

Headline

WINTER 2013

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h housekeeping Healthy Beds:

Health a prime factor when choosing new beds EVEN THOUGH THE ACCOMMODATION INDUSTRY IS VAST AND MULTIFACETED, THE CRUX OF IT RESTS ON THE PRESENCE OF COMFORTABLE, HEALTHY BEDS. Essentially, guests require a bed when they look for accommodation and so regardless of how fantastic or dismal a property’s other facilities are, a five star bed will win points every time. A truly top notch mattress takes into account two key factors: posture support and allergenic treatments. These two things not only benefit guests when successfully implemented but they also benefit the accommodation providers hugely. Not only will a better quality bed last longer and require less maintenance but it will create such a lasting impression on guests that they are almost guaranteed to want to return again and again. Each of these scenarios results in a financial gain that instantly outweighs the cost of a higher quality bed - particularly when you consider that even just purchasing a slightly better mattress will make a big difference. Technology has vastly developed over the last decade, meaning that mattress support is much more advanced now than ever before. If your property features dated mattresses your guests will feel the disadvantage as soon as they attempt to sleep. Posture conscious beds these days offer mattress technology specifically designed to release pressure on shoulders, hips and the waist or lumbar areas that traditionally suffer during sleep, when the whole weight of the human body rests on those points of contact. A good mattress should reduce back aches and pains, ease shoulder pain and work with a nice pillow to improve neck alignment and stiffness. This improved neck and body alignment will reduce snoring, (an invaluable gift to provide guests with) lower pressure placed on the pelvis and hips as well as enable a gentler, more relaxing sleep.

Mattresses are historically notorious for containing a wealth of unfriendly bacteria and other substances

Accommodation providers should also be aware of the chemical impact beds have on sleep, when they examine the state of their own beds. Mattresses are historically notorious for containing a wealth of unfriendly bacteria and other substances such as pesticides, herbicides, synthetic fibers, dust mites, colorants and even formaldehyde from some bed frames made of particle board; all of which can be hugely damaging to human health. An array of nasty symptoms including nausea, asthma, chronic bronchitis, reduced lung function and serious allergic reactions can all result for using mattresses infested with these chemicals and bacteria. It has also been noted that sleeping just one night on a severely affected mattress may cause an individual to suffer with insomnia, fogginess, restlessness or even disorientation; these lesser symptoms may not be life threatening but they would certainly ruin a guest’s stay.

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housekeeping h

Hypoallergenic bed options greatly reduce and, in some cases eliminate, these horrendous substances. Mattresses can contain these chemicals without being filthy or overused; particular materials such as polyurethane foam not only contain toxins such as blowing agents but they “offgas” from the product ready to be inhaled or absorbed through the skin. Organic bedding and hypoallergenic, synthetic free mattresses usually reject the use of these toxins, so accommodation providers should be aware and chemically conscious when looking into replacing old mattresses, bedding and bed frames. Even though it is an industry standard that mattresses be made with fire retardant fabrics so as to ensure guest safety, the treatments used as fire retardants and bed bug resistants are all non toxic. Managers should remain wary of cheap foreign imports, as there is no safety requirement placed on these.

Environmental performance The most vital thing to keep in mind when choosing a commercial bed, according to Sleepmaker, is that “you should always understand what environmentally friendly processes and materials the manufacturer is employing when making those beds”.

Sleepmaker prides itself on integrating bedding manufacturing with accreditations from certified industry bodies that are endeavouring every day to reduce waste and carbon emissions by using materials and processes that are friendly to the environment. In an important milestone, the environmental performance of Sleepmaker has been recognised by EarthCheck, the tourism industry’s leading environmental management, benchmarking and certification company. EarthCheck operates the world’s most scientifically rigorous benchmarking program and measures key indicators such as energy and water consumption, total waste production, and community commitment to provide a holistic picture of operational performance. Sleepmaker offers a variety of ergonomic bed technologies to the accommodation industry. With over 25 per cent more springs than conventional spring systems, Duracoil Plus Spring System delivers durable support and is perfect for all body shapes and sizes. Unlike conventional coils, the Duracoil system has a unique triangular formation of the continuous coil method that distributes weight evenly across adjoining coils, improving mattress stability and reducing pressure points. The result is less ‘pins and needles’ and a more restful night’s sleep.

Sleepyhead is New Zealand’s largest bedding supplier. The Sleepyhead Commercial range features leading innovative technology. Phone 09 276 9300 Fax 09 270 6006Free Phone 0800 753 377 Email contract@sleepyhead.co.nz WINTER 2013

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h housekeeping supplier profile GOODER EQUIPMENT

Proven technology and heritage

T

he best laundry solutions are a mixture of proven machines and brands using the latest innovations and improvements.

Two brands of machines that use this approach are Primus and Maytag. Both have been manufacturing commercial laundry equipment a long time, Primus was established in 1911 and Maytag in 1893 so have an enormous heritage of producing machines that get the job done well.

Maytag’s dryers also have turbo-vent technology, this is a higher pressure fan system which makes their dryers the fastest drying machines in their class and able to deliver excellent drying in installation that would make competing dryers leave wet clothes in the drum. Primus throughout their long history has innovated, and their latest product development is the FX range of machinery. This

Primus and Maytag are at the cutting edge of laundry equipment design and this year have released innovative machinery which has new technology advantages and will further enhance their reputation for producing the finest quality equipment for use in commercial laundry situations. Maytag have introduced their new range of front load machines and washer dryer stackers, these use cutting edge technology to deliver excellent wash results using the absolute minimum required in terms of resources. The Maytag front load washing machine is a 9kg machine but can wash a full load using just 47 litres of water! This is less than half that of a traditional machine.

product range has had energy efficiency, ergonomics and environmental friendliness built into the design. These machines have 400G force extraction getting more moisture out of the load. They have also introduced a new advanced cascade tub design which allows more water extraction than other tub designs and does not leave the operator with linen stuck to the inner surface of the wash bowl. For further information contact Gooder Equipment in Auckland on 09 415 3581 or Wellington on 04 566 9124 or go to our website at www.goodequip.co.nz

‘Your Laundry Solution’ ❙ ❙ ❙ ❙

Better Technology New Designs Improved Ergonomics Greater Energy Efficiency

...from Maytag and Primus. Same reliability and back up from Gooder Equipment for your laundry solution. MLE20 PD

FX240

Auckland: 09 415 3581 Wellington: 04 566 9124

www.goodequip.co.nz 34

ACCOM MANAGEMENT GUIDE


housekeeping h In-House Laundries:

Making the most of a compact in-house laundry WHETHER IT IS FOR A LARGE HOTEL OR MOTEL, OR ANY OTHER KIND OF TOURIST ACCOMMODATION, AN IN-HOUSE LAUNDRY MUST NOT ONLY BE EFFICIENT IN SERVING THE NEEDS OF GUESTS, IT SHOULD BE ECONOMIC TO OPERATE AS WELL. Creating guest satisfaction will be of limited use if the facility is costly to operate and becomes a drain on profitability. In an inefficient laundry, that can amount to thousands of dollars a year. There are a number of ways these costs can be kept under control. Right from the beginning when installing a laundry, the chances are that the space available will be at a premium. With building costs as high as they are, the less space that has to be devoted to the laundry, the more economic that laundry will be. This means excellent planning is essential and a good laundry specialist will be able to provide a design that will make the best use of the area available. For instance, soft-mount, freestanding washers that slide into place without reinforced concrete foundations and bolts, might prove the best solution. Any reputable laundry equipment specialist will be able to offer several models that are compatible with compact space-saving designs. One example of this is return-to-feed ironers that are specifically

engineered to deliver superior finishing productivity within a smaller area. Making the most of available space, these can be installed a few inches from a wall. Such return-to-feed ironing systems can deliver fast processing speeds while working seamlessly with an optional feeder, stacker and smallpiece accumulator to quickly accomplish feeding, ironing, folding, stacking and accumulating. Purchasing and installing equipment that is really too big for the needs of the laundry, may prove to be a costly error, even if it might seem to be a cheaper option at the time. On the other hand, equipment that is too small will prove expensive in operating time and labour. There are several other ways of keeping in-house laundry costs low. The aim should always be to conserve water, save energy and reduce waste while increasing profits and productivity. By reducing water consumption, hotels not only cut water costs, they also cut water-heating costs. With water heating accounting for approximately 40 percent of a hotel’s energy consumption, cutting one or two litres of hot water from every load can translate into tens of thousands of litres saved annually. New Zealand has several in-house laundry specialists who are able to give good advice and planning, as well as supplying equipment.

The worlds largest manufacturer of coin operated and commercial laundry equipment

Factory Backed Finance Available

0800 77 333 7

sales@speedqueen.co.nz | www.speedqueen.co.nz WINTER 2013

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h housekeeping In-House Laundries:

Speed Queen NZ Ltd

ELS New Zealand Ltd

Speed Queen NZ Ltd supplies equipment throughout New Zealand and the South Pacific for the Wisconsin-based headquarters, the largest and oldest manufacturer of commercial laundry equipment in the world.

ELS New Zealand Ltd distributes the Electrolux range of equipment throughout New Zealand and the Pacific Islands. Managing director, Allen Moore, says the Electrolux product is developed with “quality, user friendliness and efficiency in mind, taking into consideration the hospitality industry’s needs for speed and high quality results.”

Sales director NZ, Duncan Gardiner, says when considering the purchase of new OPL (on-premiselaundry) washing machines, the two main decisions are the size and whether a ‘hard mount’ or ‘soft mount’ machine would be best. “The size of the equipment is important to ensure the laundry runs efficiently. The biggest cost in an in-house laundry over time is labour. If your new equipment is too small to handle the volumes generated, the laundry will be operating for longer than it needs to, creating additional labour costs. “Hard mount machines are the workhorses of the laundry industry – they’re the cheapest to buy and usually more than adequate for small to medium hospitality laundries. Soft mount machines are more specialised pieces of equipment with the main advantage being much higher extraction speeds. This really comes into play if a property is processing large amounts of towels or heavy terry items, such as robes.

When establishing a new in-house laundry, it is very important to get the basic design and sizing of laundry equipment correct, he said. “This is where the experience of our company’s personnel and our extensive product range can be very beneficial to clients.” He sees some of this basic design criteria as: •

Sufficient floor space for a well-planned layout, allowing for laundry pre-sorting areas which may include a tub for soaking or prespotting. There should be area for the correct installation of the equipment, with allowance for adequate service area around the machines, plus room for a table for folding and sorting the linen in preparation for delivery to the rooms or linen store. Separate clean and soiled sides, providing a work-flow within the laundry design layout that supports good hygiene standards and prevents the possibility of cross contamination of dirty laundry to clean laundry. Correctly specified services of electric power, water supplies (hot and cold), drainage, gas supplies, and venting of the dryers to the outside atmosphere. It is important to note that that during a time of increasing energy costs, gas heating as an alternative for both hot water supplies and dryers usually provides a cost effective option to electric heating.

“The choice of dryer is usually just a matter of selecting the right size to match your new washing machine. The correct size is a dryer that can process a full load from your washing machine in the same time it takes to run a wash cycle,” Mr Gardiner said.

Mr Moore says there are several makes of equipment now available on the market, but not all are supported by suppliers and overseas principals who can provide efficient and long term service, spare parts supplies, and ongoing support for staff training or technical backup.

“Pre planning is also a crucial part of ensuring a new or refurbished laundry will work efficiently and cost effectively. Speed Queen does as much pre-planning as possible, using a CAD (computer assisted design) system to ensure the work space is used efficiently and that all technical aspects, such as ducting and drainage, are all in the ideal place. With some innovative thinking, such as fitting service doors behind machines, we can often solve otherwise thorny space or access problems,” he said.

“Ask the hard questions prior to the equipment you’re considering being installed and connected – does it have approved Electrical and Gas Certification, which is now mandatory in New Zealand.”

“We have a product to suit any situation. Our range of washers starts with our 8kg top and front load machines and extends up in size through our economical rigid mount models. We also offer soft mount, high speed extract washers designed for easy installation and to save precious energy in the drying stage of a laundry operation. “Our dryers are designed to be as energy efficient as possible whilst still offering excellent drying performance. The range includes space saving stack units right up to fully programmable high capacity machines. “We’re backed by more than 130 service agents throughout New Zealand and carry a full stock of parts in our warehouse. If a breakdown occurs, downtime is kept to a minimum,” said Mr Gardiner. “With over 60 years of combined experience in every sector of the industry, we are happy to offer advice on setting up any type of commercial laundry operation, be it a ‘passive income ‘self serve laundromat or a large ‘on-premise’ operation for a hotel or hospital.”

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He says given a reasonable level of maintenance, the life expectancy of good commercial laundry equipment should be approximately 15 years. “Fully programmable microprocessor controls for both washers and dryers, guarantee the owners optimised program control for each individual application. Added advantages of low water usage in washers, plus features such as residual moisture control (RMC) in modern European commercial dryers, also decrease energy consumption and protect linen to maximise life expectancy,” Mr Moore concluded.


housekeeping h supplier profile SOUTHERN HOSPITALITY LTD

The New IPSO D-Line Washer-Extractors

D

-line washer-extractors feature an improved design for easier installation and maintenance, a redesigned frame that is even stronger than before and proprietary inverter technology that offers users a more efficient cycle. Other characteristics include a new soap dispenser with four compartments; new dispenser lid with four compartment symbols and an improved door lock mechanism with a reed switch for extra safety. The new washer-extractors’ design reflects IPSO’s commitment to creating intelligent solutions that reduce waste, save money and maximize productivity. Its ultra-efficient SmartWAVe technology allows for minimum consumption and maximum performance. Other manufacturers use an automatic weighing system to determine how much water should be used. The patented and precision-engineered technology of SmartWAVe takes it one step further. IPSO uses cutting-edge sensors to measure the absorption capacity of the type and amount of fabric that’s in the cylinder to dispense the ideal amount of water. SmartWAVe reduces water, energy and soap consumption – without users having to lift a finger. The D-Line features IPSO’s advanced Cygnus control systems, the most comprehensive control in the industry. Cygnus is available in four tiers: Standard, Commercial, Premium and Professional. Cygnus Assist software allows the modification of every parameter, including the wash cycle, from the convenience of a computer or laptop. Cygnus also provides a full spectrum of service features, from scheduling maintenance at

designated times to recording valuable information such as the number of completed cycles and service warnings–all of which extend the life of the equipment and boost the profitability of the laundry operation. Five-Stage Testing for Unmatched Industrial Reliability – Guaranteed The new D-Line was developed through IPSO’s exclusive Five-Stage Product Development Process. This rigorous process includes finite element analysis, component testing, life and load testing, field testing, and world-class manufacturing and quality control. The process is so intelligent and thorough that IPSO has the confidence to offer an industryleading three-year warranty. In addition to IPSO’s stringent testing criteria, the company also turned to the world-renowned Hohenstein Institute - an international research and service centre headquartered in Boennigheim, Germany focused on development, testing and certification of textile products - to independently test its products. As a result of their testing, IPSO has modified its standard wash programs to offer the same outstanding wash results, while using less water, detergent and energy. As a result, IPSO machines have reduced water and utility consumption by 25 percent without sacrificing wash performance. D-Line washer-extractors are now available through Southern Hospitality Ltd with the models available: HD Soft-mount 6-30.5kg capacity & WD Hard-mount 6.5-40kg capacity

INDUSTRIAL PERFORMANCE D-FINED Introducing The New IPSO D-Line Washer-Extractors The new IPSO washer-extractors are here, and they’re setting new standards for what it means to be industrial-grade. A redesigned frame takes durability to a new level. Advanced Cygnus Controls and our innovative inverter drive combine to help reduce water and utility consumption by up to 25%. Top it off with an improved design that provides easier installation and maintenance, and it’s clear that D-line is redefining industrial performance.

0800 503 335 • www.southernhospitality.co.nz 14 branches nationwide WINTER 2013

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h housekeeping In-House Laundries:

Southern Hospitality Southern Hospitality has been agent for the Ipso equipment range in New Zealand for nearly 35 years, either directly or through a Kleentech, which Southern Hospitality purchased in November 2006. Ipso is owned by Alliance Laundry Systems in the US and the machines are manufactured in Belgium. Southern Hospitality has 14 branches in New Zealand and usually has about 75 reps on the road. Their jobs involve making regular calls on existing customers to build good relationships. Before setting up a new laundry, the company will talk to the customer about what its needs are – then provide a floor plan and advice on the most suitable types of equipment to use. It would then quote the customer on a full supply and installation. Its design department is able to provide computerised plans and a utility schedule that can be used when approaching the local council for concepts. Once the laundry is established, the company can provide full training on everything from good housekeeping practices to various health and safety issues, and offers a full preventative maintenance service on the equipment after the warranty period runs out after two years. National laundry manager, Paul Trotter, says Southern Hospitality is still providing parts for Ipso machines that are 30 years old.

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“We can supply laundry equipment from 8 kg to 200 kg, program our own laundry cycles and automatically inject our own range of laundry detergents – offering a one-stop-shop for anything laundry,” he said. By Brent Leslie, Industry Reporter


Forest & Bird. Help us help nature. For every Forest & Bird product you purchase, Health Pak will donate a percentage to Forest & Bird to support their magical work in protecting our native flora & fauna. That’s right, not only are these products made right here in New Zealand (saving on 1000s of kg of carbon emissions) from degradable formulations and packaged in recyclable packaging, making them without a doubt, the greenest guest amenities on the market. Not only this but…. · We will pay the first 12 months for you to become a Forest & Bird member! · We will provide you with a fantastic membership certificate to display within your property. · We will provide you with full colour compendium inserts for all your rooms FOC detailing how the Forest & Bird range works. · We will provide you with membership forms to give to your guests. · You will receive the Forest & Bird magazine to display to your guests. This range is truly revolutionary. By becoming part of the Forest & Bird story your guests will truly appreciate your choice and the good you are doing by using this range.

Get immersed in the Forest & Bird range and make the story work for your guests, contact us today to get samples and get started making a difference.

ACCO Y•

ION•I AT

O MM D

DUSTR N

2013 MEMBER

For free samples and pricing, contact your local Health Pak distributor or www.healthpak.co.nz, sales@healthpak.co.nz, or call 09 579 6268


h housekeeping Vacuums:

Which vacuum system suits you best? WHETHER IT’S TO MAINTAIN AN IMAGE, PRESERVATION, GENERAL CLEANLINESS OR THE GENERAL HEALTH OF PATRONS, VACUUMING IS A NECESSARY TASK IN THE HOSPITALITY INDUSTRY. WITH MANY DIFFERENT VACUUMS AVAILABLE IN THE MARKET, IT CAN BE A DAUNTING TASK CHOOSING THE CORRECT ONE TO FIT YOUR NEEDS. Whether it be an upright, canister style or backpack vacuum, they all essentially perform the same task, however some are more suited to different applications than others. This article focuses on Backpack Vacs and Upright vacuums and outlines the advantages of each.

Backpack vacs Delivering the ultimate in comfort while allowing portability, back pack vacuums are popular with contract cleaners and ideal for vacuuming rooms such as office spaces, concert halls, stairways and even the cleaning of aircraft. Having the machine on your back means extra weight for the user so the vacuum has to be relatively light and comfortable.

Backpack vacuums generally come equipped with long electric cables for maximum efficiency however there are occasions that power sources cannot be accessed. Backpack vacuums that are powered by batteries are ideal in this application. This way the user can clean where ever they need to without the worry of finding a power outlet. Another popular option is using a washable cotton filter bag with the vacuum. This reduces costs for the user and is environmentally friendly.

Upright vacuums By contrast, upright vacs are better suited to larger rooms and areas such as hallways, foyers, showrooms, offices, ticket halls, hospitals, hotels and restaurants with the larger working width of the vacuum head cleaning larger areas in no time. Upright vacuums generally do not have as much suction power as a conventional canister vacuum due to their upright design, however they make up for it in their cleaning ability. Most upright vacuums are equipped with a roller brush which reaches deep down into the pile to loosen dirt particles. The dirt is then much easier to vacuum up. The agitation of the brush lifts the pile of the carpet and leaves the carpet looking refreshed. However upright vacuums equipped with a roller brush are less suitable for long or looped pile carpets as the brush gets caught in the pile. Another feature that upright models have is the option of either one or two motors. If an upright vacuum has one motor then both the suction and the brush are operated off the same motor. Alternatively if the unit has two motors then the suction and roller brush are driven by independent motors for increased performance. Upright vacuums are popular when cleaning large areas as they generally have a larger coverage than a conventional vacuum floor tool. A larger coverage means less passes with the vacuum and a faster clean time. Whether we like it or not vacuuming is an essential task which needs to be regularly done. So when choosing your next vacuum be sure to consider the options available when assessing the environment needing to be cleaned.

Professional cleaning with discreet performance. www.karcher.co.nz

0800 KARCHER

Choosing the right type of vacuum will not only make cleaning a whole lot easier but produce the best cleaning result. By Mike Roberts, Kärcher

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ACCOM MANAGEMENT GUIDE


housekeeping h Subsection:

Headline

CREATE A CLEANER & RELIABLE HOSPITALITY ENVIRONMENT Nilfisk Vacuum Cleaners Advantages for Hotels, Motels & Resorts. Improve indoor air quality: superior filtration, HEPA option Save labour: vacuum in one pass with its powerful motor and high suction Save time: less time spent in changing dust bags Reduce operator’s fatigue: machines ergonomically designed Allow for daytime cleaning: noise level at minimum Reliable: longer working life due to its sturdy, durable construction Save energy: quiet and powerful vacuuming with low energy consumption

$50 OFF!*

If you trade in your old vacuum cleaner to our range of Nilfisk vacuum cleaners! Enquire now! *terms and conditions apply

Book a

FREE, NO-OBLIGATION On-Site Audit to know which vacuum cleaner is right for your hotel, motel or resort! Email your enquiries to: marketing@advanceclean.co.nz

Advance International Cleaning Systems is the sole distributor of Nilfisk commercial machines in New Zealand. It has been providing world-class and effective hygiene solutions to the hospitality industry for over 25 years. P +64 9 525 3792

E info@advanceclean.co.nz

W www.advanceclean.co.nz

WINTER 2013

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ss safety & security Door Lock Technology:

Safety and security in door lock technology SECURITY IS AN ISSUE THAT OFTEN REARS ITS HEAD FOR ALL THE WRONG REASONS, LEAVING THOSE OF US IN THE ACCOMMODATION INDUSTRY WITH THE CHALLENGE OF MAKING SAFETY A PRIORITY WITHOUT TURNING GUEST ROOMS INTO PRISON CELLS.

When the decision to upgrade your locking system needs to be made, remember to always make sure that you purchase the finest quality system that your budget allows at the time.

A shocking turn of events made international news last year when a hotel chain admitted how a series of guest rooms had been ransacked due to a breach of security in their door locks. This thief opened the world up to just how easy it is to bypass card reading door locks just by using a marker pen. It should not take an incident like this to force a review of safety and urge managers to update those old security systems. So what is happening in the world of accommodation security systems? Door lock technology has progressed and we want to investigate some of the new technologies available, including: invisible door locks, otherwise referred to as RFID, which stands for Radio Frequency IDentification. This is an automatic identification technology whereby digital data encoded in an RFID card or “proxy tag” is transmitted by the card and captured by a reader. These sophisticated and more secure safeguarding technologies now offered to the accommodation industry have been around for a little while but are still some of the most advanced hotel door locking systems around. They are innovative, intelligent, and allow state-of-the-art access control for both staff and guests. The locks grant or deny access to the hotel or room and this particular technology eradicates the need for a magnetic strip; eliminating any friction or demagnetisation, which means that these “contactless” key cards have an unlimited life span. So what prompts individual properties to make the decision whether to upgrade their security measures or not? Most managers who look to update their locking systems are faced with a dilemma. Their old magstripe locks are out of date and need to be replaced but managers may not have the budget to replace them with the most current RFID technology. If this is the case it is advised that they work with a reputable and knowledgeable supplier who will be able to provide various options. Jan Strijker is the director of Brantas International that supply, SAFLOK a brand of top of the line electronic locks that cover a range of solutions,

from stand alone locks to the full online version, to the accommodation industry. He suggests, “Operators need to look into the future when replacing their locks. Their locking system should last between 10-15 years. They need to ask themselves: does this lock have longevity and is it capable of going online?” SAFLOK can be installed and then integrated into other technologies as they come online. The current trend in locking systems is quickly travelling toward full online contactless locks with room automation due to the huge advances. It is a fact that the accommodation industry has become more and more driven by technology. From the property management systems and in-room technology to the environmental management systems and door lock and security systems, in order for managers to get the best from these systems it is essential that they are all compatible and they all communicate well with one another.

Go Online and get MORE than you imagined possible VingCard - electronic locking system solutions Elsafe - hotel safes Polarbar - room minibars Orion - intelligent energy management system Mobile Kiosk - unattended Check-in/Check-out

Ph 09 444 0161 42

ACCOM MANAGEMENT GUIDE

email: sales@vingcard.co.nz

www.vingcardelsafe.com


safety & security ss

When considering a lock, these other technologies need to be taken into consideration as to how well they integrate into the whole network. For an online contactless locking system can be integrated into the energy management system of your hotel. Locking systems can be integrated with EMS and information as to who opens the lock of a particular room can be sent to a central control and the person who enters the room can be identified. The room’s energy management system will respond according to the identity. So if it is a member of staff coming to replace the coffee the lights and air-con will stay in “sleep mode” and will not respond but if it is a guest the EMS will immediately kick into “welcome mode” This is an incredible concept and has the potential to make huge long-term financial and energy savings. These latest lock technologies according to Mr Strijker offer much more security and convenience for the guests and “bring with it better energy consumption, more staff efficiency and increase the overall guest experience”. Jan Strijker realises the importance of budget for managers when considering an overhaul of these systems. He says, “budget at the end of the day is key and choosing the right integrated system, cost, safety and quality seems to be the key recommendation in terms of selecting the best technological outcome for your property.” He considers that the solutions offered at Brantas International not only offer quality but also longevity.

Keeping guest safety as top priority, unlike the earlier scenario that hit international headlines, the RFID system seems to provide the securest options. Especially when you hear that this system is not easily hacked as it makes stealing the information off the card very difficult. RFID uses a higher level of encryption than the older magstripe technology and this again is very reassuring. However an ever-constant fear is the issue of substandard locks flooding the industry, while they may keep the initial installation costs down, this comes with a cost. The expected service life is greatly reduced than from more established companies, so indeed the lesson to be learned here for those of us in the accommodation industry, is to keep up to date with the newest technological advances, assess the individual needs of your accommodation property and talk to a knowledgeable and reliable provider of this technology. Levco Agencies Ltd; a private family company marketing and distributing mechanical and electric locks; locking systems; safes; drug, gun and data cabinets; access control systems; digital locks; industrial locks and other security hardware products in New Zealand. Hotel locking systems require a 24 / 7 backup and support and Levco Agencies LTD recommends that customer service should be something that is given the highest priority when making the decision to update your system.

WINTER 2013

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er energy & resources Guestroom Energy Management:

Switching on to energy efficiency TECHNOLOGY HAS COME ON LEAPS AND BOUNDS IN THE LAST DECADE, TO THE POINT NOW WHERE EVERYDAY SYSTEMS AND APPLIANCES ASSOCIATED WITH THE ACCOMMODATION INDUSTRY MAY BECOME OBSOLETE. Guestroom energy management is brisling with new technologies that could revolutionise your property with energy efficiency, automated convenience and interfacing solutions. More adaptable and affordable than ever before, it is likely that most accommodation providers will integrate some of these new technologies very soon. According to Jan Strijker, director of Brantas International Technology, a leading provider of energy management solutions, “EMS stands for Energy Management System. In the context of hospitality EMS, it is a set of components which allow a hotel operator to automatically manage the energy used in a hotel room depending on the status of the room. The room status being rented or vacant; occupied or unoccupied; out of order or operational. A good EMS manages energy consumption by HVAC (Heating, Ventilation, Air-Conditioning) as well as lighting”. Strijker furthers that EMS should “provide the hotel operator with information on the mechanical status of the HVAC system in the rooms as well as statistical information on guest behaviour. It should also allow the operator to pinpoint in real time, shortcomings in the various settings and in case of faults with the mechanics the EMS is interfaced to, act proactively and thus minimize guest complaints. So not only is there an ROI on energy saved, but also an ROI on manpower used as well as a soft ROI through improved guest comfort and satisfaction”. This is terrific in the accommodation industry’s new age of environment concern. “The greatest

benefit of a good EMS is that a considerable amount of energy can be saved thanks to the constant monitoring of room status and provision of heating/cooling power associated with that status.” With this level of technological advancement in mind, Strijker explains that the process of installation “entirely depends on the extent of the installation and features of the system desired by the customer”. Strijker continues: “The beauty of the INNCOM solution is that it is completely modular. It can be tailored to the hotel owners’ budget. From the installation of just a very competitively priced smart thermostat with Person In Room sensors and door sensors to extensive bespoke glass touch sensitive switches,

Door Lock Technology: Their aim is to provide workable security solutions to meet the individual needs of the specialist customer base while maintaining a top quality service for customers.

by minimising the lock hardware and incorporating new technologies such as RFID and NFC, a visible card reader has remained on the door exterior, giving hotels a distinctly commercial feel in the hallway.

Mike Levestam from Levco Agencies LTD presents the solution of, Essence by VingCard; a new concept and a great locking system that takes minimalism to the extreme. It eliminates all lock hardware on the door by encasing all electronic components inside the door itself, making security virtually invisible to hotel guests.

Essence by VingCard eliminates that challenge, hiding the locking components from the user and allowing designers to align the guest room doors with the current trend toward a more residential look in hotel design, while proving the ultimate in security technology.

Although undetectable on the door exterior, Essence by VingCard integrates VingCard Elsafe’s most advanced contactless locking solutions into the interior electronics, including RFID and near field communication compatible locking technologies. “Essence by VingCard represents another giant leap forward in hotel design and technology,” said Mr Levestam, “it not only makes the lock disappear from the hotel door, resolving design challenges for savvy, design-conscious hoteliers, but it also minimises a variety of other operational issues, such as integration, installation and maintenance.” Since the advent of electronic security, hotel door locks have presented a challenge to hotel design professionals, such as architects and interior designers, who are tasked with blending the lock hardware into the hotel décor. Even though lock manufacturers have made strides in recent years

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ACCOM MANAGEMENT GUIDE

“In addition to being the dream of hotel design professionals, Essence is also compatible with our patented wireless online Visionline system,” continued Mr Levestam. “This makes it essentially the most advanced and streamlined locking system on the market today, from both a design and operational standpoint. It is the pure essence of form and function, and we are proud to introduce this innovative concept to the industry.” So when the decision to upgrade your locking system needs to be made, remember to always make sure that you purchase the finest quality system that your budget allows at the time and ensure that this technology is able to “talk” or has the potential to “talk” to any technologies that you have, or have planed. Do this and you will readily take your accommodation security into the next decade and beyond. By Amanda Clarke, Industry Reporter


energy & resources er

door chime and do not disturb / make up room annunciators with interfaces to the hotel’s property management system. INNCOM can be installed quite easily in existing rooms without having to be part of an extensive renovation.”

Whilst explicitly designed to lower energy costs and heighten guest comfort, the selling point of energy management systems is cost-effectiveness

In terms of an interfacing guest room energy management system with door locks, convenience becomes a commodity. “INNCOM interfaces to door locks from most major lock manufacturers and allows the system to detect if it is a guest entering the room, or a staff member and subsequently decide what to do with the HVAC and lighting in the room as a result.”

It also allows the system to decide, if it is a new guest entering for the first time, to initiate a ‘welcome light’ setting. “This is quiet a clever way to welcome a guest in a different way than a guest who returns to the room after having gone out for a while, in which case the room will go back to the light setting in place when the guest left the room earlier on.” EMS systems also enable staff to control room temperatures remotely from one central location and to automatically control temperature settings as guests travel in and out of guest rooms. Whilst explicitly designed to lower energy costs and heighten guest comfort, the selling

point of energy management systems is that whilst safety and comfort are given top priority, cost-effectiveness is paramount. “A solution like INNCOM can save around 25 to 50 per cent on per room energy cost depending on what components are installed. That is a huge amount of savings!”

Strijker’s recommendation to those considering EMS is simple: “if you are truly serious about energy management, choose a solution that offers a robust ROI of between three and four years, which has energy savings potential but also offers a soft ROI through increased guest satisfaction and increased operational efficiency”. It is not necessarily a question of whether to abolish your old systems and technology for new ones, but finding a way to integrate both so that you and your guests receive the most benefit possible. “Take it seriously and gravitate towards serious suppliers, who have a good track record and can prove their success in the market both overseas and across New Zealand.” By Amanda Clarke, Industry Reporter

Comfort in the Guestroom… Visibility in the Control Room… Energy Savings in the bottom line

Unit B, 156 Bush Road, Albany 0632, Auckland ■

09 966 7662

info@brantasinternational.com ■ www.brantasinternational.com WINTER 2013

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t technology Digital TV:

Are you ready? ANALOGUE TV SIGNAL WILL END IN 2013, ARE YOU PREPARED FOR IT?

In order to receive Digital pictures you must have one (or other) of the following:

It is now less than 2 months till the analogue TV signal that provides the free-to-air channels (such as TV1, TV2, TV3, C4 or Prime) will end in the lower North Island. D-Day is 29 September 2013 and it is imperative that you are sorted before then. For your information the upper North Island is switching off some nine weeks later on 1 December 2013.

1. Free-view inbuilt TV’s – There are two types of delivery systems of Freeview- either satellite or terrestrial (UHF). Freeview TV sets will only work in DTT (Digital Terrestrial Television) areas. You will need to check if this applies for your place.

So what does it all mean? Well as most of you may already be aware, the South Island had their analogue TV signal terminated in April this year. This saw that the majority of accommodation operators were already sorted. However, here at SKY we had several South Island Motels contact us soon after the analogue TV signals were terminated. They had lost their free-to-air channels to their rooms because they thought they were already good-to-go. This was not the case as the TV sets were not set-up for Digital. Disappointed guests made life awkward for these unfortunate Motels, nervously waiting on TV technicians to resolve restoring the freeto-air channels. To avoid the same situation in the North Island when the analogue TV signals are terminated, here are some simple tips to ensure you are Digitalready.

me ould like to welco SKY Business w e w sites sinc the following ne rvice! r Guest Select Se ou to 13 20 ch Mar

Pacific Apartments, Mt Maunganui • Anchorage Apartments, Mt Maunganui • Townhouse Motel, Timaru • Franz Josef Oasis, Franz Josef • City Centre Motel, Christchurch • Alexandra Motor Lodge, Alexandra • Astra Motor Lodge, Hamilton • Averill Court Motel, Paihia • Coach-trail Villas, Waiwera • Quest at St Pauls Apartments, Wellington • The Ambassador Hotel, Hamilton • Aloha Lodge, Nelson • Focus Motel and Executive Apartments, Christchurch • Clear Ridge Apartments, Hanmer Springs • Cheviot Trust Hotel, Cheviot • Marlborough Vintners Hotel, Blenheim • 858 George St Motel, Dunedin • Anchor Inn Motel, Kaikoura • Oxford Court Motel, Nelson • Analfi Motor Lodge, Christchurch • Waldorf Newhaven, Auckland • 299 on Devon Street West Motel, New Plymouth • Cornwall Motor Lodge, Palmerston North • Golden Glow Motel, Rotorua • Athenree Hot Springs Holiday Park,Waihi Beach • The Strand on Devon, New Plymouth • Kaikoura Top10 Holiday Park, Kaikoura • Cedar Park Motel, Timaru • Blue Gum Motel, Christchurch • Coronation Lodge, Queenstown • Central Park Motor Lodge, Christchurch • Cherylea Motor Lodge, Blenheim • King & Queen Hotel Suites, New Plymouth • Matariki Motor Lodge, Te Awamutu • The 4 Seasons Motel, Wanganui • Abode on Courtney Motor Inn, New Plymouth • Waldorf Bankside, Auckland • Murchison Motel, Murchison • Coastal Ridge, Timaru • Nellies Hotel, Mosgiel • Sherbourne Motor Lodge, Christchurch • Kauri Motel, Christchurch • Tudor Motor Lodge, Nelson Call us today on 0800 759 333 to find out how Guest Select can work for your property. Check out the 280 plus sites that are enjoying the benefits at www.skyguestselect.co.nz

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ACCOM MANAGEMENT GUIDE

As a tip, some models of TV will display a DTV ‘logo’ (generally in topleft or top-right corners) as you channel change through the free-to-air channels. If so you have Digital TV already and are good to go when the analogue channels end later this year. For your information, analogue channels are often displayed as ATV. Or 2. Free-view decoders – These are available from various electronics/ whiteware retailers and may be located in a centralised location such as the PABX room, garage, or cupboard under the stairs. If you are an existing SKY subscriber with a limited number of channels now then the Freeview decoders are often alongside the rack/stack of decoders. A single Freeview decoder would be required for each free-to-air channel. Or 3. SKY Guest Select – A decoder in the room gives the guest the ability to access over 50 channels, all in crystal-clear digital format and includes the Free-to-Air channels as well as any new channels as they are introduced to the package. Whatever option you decide to go with regarding receiving digital TV, the most important consideration is that you seek independent advice from a TV installer familiar with commercial set-ups like yours. Feel free to contact us for technicians that SKY approve and recommend. The cost in having a technician reviewing your TV distribution system could be the best investment you make this year. And finally…..don’t leave it too late! Having an assessment carried out promptly by qualified TV technicians will at the very least give you peace-of-mind and at worst identify any TV issues sooner rather than later. Procrastination will not make the analogue-TV issues disappear! As the South Island experience proved, if you leave it too late then already busy TV contractors dealing with the hundreds of domestic homes that require TV solutions are now involved in trying to solve your loss of TV reception issues. Having frustrated guests at your front counter unable to watch even free-to-air TV is unfortunate and regrettable but totally avoidable by having your TV distribution system checked beforehand. In summary, the old girl of analogue TV has served NZ well over the last 50-odd years and it is now time to put her to bed progressively later this year. On the plus side, the future is Digital. It provides cleaner and better pictures than analogue ever could. It will instantly enhance the guests’ expectation of TV pictures for now and beyond. By the time the next AMG edition is released later this year, all of NZ will have moved to Digitaltherefore this will be our last AMG article on going Digital. As a major supporter/supplier to the Accommodation sector we felt it imperative to provide a balanced, informative perspective on a subject close to our hearts. We hope you have found the articles over the last two years helpful in making decisions about your TV system. On behalf of my colleague Todd Marshall and myself- thanks for reading! For more information on going Digital, check out www.goingdigital.co.nz


technology t Guest Entertainment - IPTV:

IPTV changes everything GUESTS EXPECT AT THE VERY LEAST, SOPHISTICATED ENTERTAINMENT FACILITIES EQUAL TO WHAT THEY ENJOY AT HOME WHEN THEY RELAX IN THEIR HOTEL ROOMS - IF NOT BETTER. Just when you thought all your guests’ in-room desires had been catered for, along comes Internet protocol television, easier remembered as ‘smart TVs’. Another technology to fund and grasp the intricacies of is the common reaction, yet in many ways, this new technological evolution actually simplifies in-room connectivity and entertainment. Guests can use their televisions to do virtually anything they want - browse the Internet quickly and securely; access social media to keep abreast of family and friends; use WebMail services; contact work or home through VoIP or Skype; and, of course, embrace a movie or two. And not just watch a movie but enjoy high definition viewing of movies-on-demand, free-to-air channels, subscriber TV and hotel specific content such as a compendium, promotion of on-site facilities and local information - no queuing or waiting for rotation of titles. And with full ‘trick play’ facilities. Guests can also access a wide variety of web based apps and multilingual functions are also available. Especially important for corporate travellers, guests can use their own laptops or other devices without altering their own setups - the can use

their own POP or SMPT settings or corporate VPNs. All from one user-friendly remote. For now the landscape of what guests want to consume and how they want to consume it changes rapidly and according to Jamie Hind, managing director of Tripleplay Australasia, “Properties must be able to keep up and must have the capability to manage the guest experience – get this and the network right and you have a platform and a solution that will serve you well now and allow you to add features and functionality as and when the need arises.”

Let your guests connect and wakeup to their own music CONNEplCeT

to any Ap and other ce! mobile devi

Guests bring a lot of gadgets and these are loaded with entertainment from movies to games and the ability to ‘catch up’ on favourite TV shows they may have missed. Smart hoteliers recognise that allowing guests to easily access the In Room TV is what their guests want. Making this quick and easy via a connectivity panel is the ideal solution and it leaves the TV properly working for the next guest too! Bigger is better, they do not want to watch a movie on their Pad and certainly not from their phone. Make your guests happy, provide a MediaHub so they can access that great TV you put in for their enjoyment.

09 966 7662

www.brantasinternational.com

Unit B, 156 Bush Road, Albany, Auckland, 0632 E | info@brantasinternational.com WINTER 2013

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AN INNOVATIVE APPROACH TO GUEST ROOM ENTERTAINMENT & Wi-Fi

ROSS COLDWELL | MD OF LIFESTYLEPANEL PTY LIMITED

Delivering all the key elements of your Guest’s expectations of quality information, communication and entertainment into a single easy-to-use appliance and interface

T

he Challenge: Hotels and resorts often have to deal with the frustration and hassles their guests encounter when trying to work or be informed or entertained in their hotel room. The simple things, like access to reliable high speed Wi-Fi internet, movies, television and other hotel services, and being able to easily communicate with their business, family and friends while away from home. The second generation of the Lifestylepanel system meets that challenge and does so in a neat and simple way. It delivers true integration of a range of guest services, all streamlined to the guest room via a quality Lifestylepanel Android® High Definition LED Smart TV. The easy-to-use remote control and the wireless keyboard with touchpad introduces the guest to movies-on-demand, free-to-air and cable TV, Internet via the TV, cable and Wi-Fi and hotel information services. Foreign language menu support is also provided. Wi-Fi in the room: Wi-Fi availability in the guest room is universally expected. Providing reliable Wi-Fi throughout the guest space can be an expensive business, often requiring difficult and costly cabling and deployment of hardware hotspots throughout the premises. Getting optimum coverage to each room can be a challenge. Again, the Lifestylepanel System meets that challenge by imbedding the room Wi-Fi into the TV. No extra cabling or deployment is required. Each room TV provides access to a quality Wi-Fi connection to a guest’s multiple devices with the ability to roam the hotel premises on the room plan. Movies-on-Demand means just that: Legacy movie services are the source of many complaints for hotels. A Movie-on- Demand does not mean having to join a queue or wait for rotation of titles. Lifestylepanel means being able to select from a quality library and watch it immediately, or at any time, with full trick play for guest convenience. All in digital quality on a screen sized appropriately for the room.

Infrastructure Options: Hotels can face significant costs installing or upgrading data cabling for internet or Wi-Fi services. Lifestylepanel offers an ideal solution for hotels looking to save those costs. Using Ethernet-overSIMPLICITY: Simultaneously connect multiple devices to Coax technology the fast and dependable Wi-Fi in every guest room. Lifestylepanel System delivers the movies and high speed internet Choice of TV Size: The Lifestylepanel services, including Wi-Fi, Android® High Definition LED Smart TV is to the guest room via the existing MATV currently available in 32”, 42” and 50” sizes coax cable. The Lifestylepanel System is also engineered to utilise existing Ethernet Sensible Competitive Finance options: The infrastructure. Lifestylepanel Hospitality TVs can be supplied Energy Saving: The energy efficient Lifestylepanel LED Android® TV is also designed to operate through the hotel rooms’ non-essential power supply where available, helping hotels meet energy saving goals. Minimising Costs of Deployment: Hotels can incur high cost capital outlays to upgrade their outdated TVs and services, often having to deal with multiple vendors. Lifestylepanel offers a competitive upgrade of the TV fleet which includes installation of the Lifestylepanel System delivering Movies-onDemand and High Speed Internet and Wi-Fi to the guest room Lifestylepanel does a quick efficient install with little or no disruption to existing guest services, leaving a tidy room setup. No set top box or ugly tangle of cables. Being able to utilise your existing coax infrastructure to carry IP services to the rooms is a compelling advantage. Single Supplier Simplicity: For in-room delivery of content there is only the one vendor to deal with, managing the entire process from install through ongoing provision and collaborative management of the Guest experience.

on a competitive Purchase or Rent-to-Own arrangement, complimented by a revenue share or flat rate commercial arrangement. We also offer a simple ZERO CAPITAL Facilities Management Program that includes full supply of the TVs and System and all box office movie and guest Wi-Fi services for a simple monthly fee. Access to Information: The Lifestylepanel System provides real time online reporting with simplified billing integrated with most hotel PMS systems. Online compendiums and information pages offer significant savings over traditional hardcopy printed versions. Not to be overlooked is foreign language menu support especially for Chinese, Japanese and Korean guests. These represent the key elements to satisfy guest and hotel management expectations alike. The majority of guests are prepared to pay for quality of service. The challenge is to keep that cost to Guest affordable and delivering a high quality dependable service. Lifestylepanel Pty Ltd develops and delivers leadingedge in-room entertainment and information technologies for use in the accommodation market. Ross Coldwell can be contacted at: ross@lifestylepanel.com


An innovative integrated solution for Guest Television, Movie and Wi-Fi Services

Delivering dependable Wi-Fi into each guest room! Connect simultaneously to multiple devices! No additional costly cabling or installation required! • • •

A very smart HD 32” or 42” LED HD Android Hospitality TV An easy to use interface your Guests will enjoy Electronic Compendium and Information portal SAVE by utilising your existing MATV coax infrastructure to deliver TV, Movies-on-Demand and On-Screen High Speed Internet, and Wi-Fi into each guest room via the Lifestylepanel Android Hospitality TV  Energy efficient

 Competitive pricing

 24/7 Support

 Single Supplier Simplicity

Simple affordable finance options available Purchase, Rent-to-Own or a Zero-capital all-inclusive Facilities Management Program available If you are planning to update your in-room Entertainment and Wi-Fi please contact: Arvin Lawler 021 677 540 or email arvinl@lifestylepanel.com or Jeremy Amor 021 880 976 or email jeremya@lifestylepanel.com Discover how Lifestylepanel can benefit your business. Lifestylepanel New Zealand Limited

Address: Unit Q, 9 Lovell Court, Albany AUCKLAND, New Zealand

Postal: PO Box 101-249, NSMC Auckland, New Zealand enquiries@lifestylepanel.com www.lifestylepanel.com


t technology Guest Entertainment - IPTV: This is good advice indeed but it is difficult for the accommodation managers to navigate the myriad of guest demands and product options that need to be considered. When Mr Hind says, “One size does not fit all” he hits the nail on the head. Every accommodation is different and each guest’s needs and expectations are too. In addition each provider of in-room entertainment has a strong belief that they offer the solution. In a society both obsessed and as reliant on its gadgets as ours is, we know that a large number of guests bring their own devices with them and like to watch their own movies and programs in the comfort of their room. We asked Jan Strijker from Brantas International Technology Ltd, why do guests want to use their own devices? His theory is, “Because they have installed music, movies and photo’s on their devices and want to play that content at home, in the office and during their travels, on planes and in hotel rooms.” Mr Strijker points out that guests expect to be able to play that content on the hotel TV or docking stations just like they do at home. “A media hub is a panel that is permanently connected to the TV and is generally mounted into the furniture,” he explains. “It allows guests to quickly and easily plug their device into the in room TV so that they can watch their own movies or play their own games or music on the in-room TV.” This option has the benefit of easy connectivity, meaning that the guest doesn’t have to fiddle with wires behind the TV to connect their device that could impact the next guest or cause damage the TV. The “active” media hub option offers plug and play compatibility meaning that when the guest plugs in their device, it auto detects this and switches the TV to play the content automatically without the need for the guest to pick up the remote control or do anything further. Another popular device is the iHomes offer the guest the ability to charge their gadgets as well as play music and serves as a bedside clock radio. The iHomes are the only devices of its sort which have hotel mode functionality, allowing hotel operators to lock them down and prevent guests from changing preset radio channels and time settings as well as

have only one time alarm setting.. Likewise once the guest has finished playing their content they simply remove the cable and the media hub returns the TV to where it was before it took control of the TV. Sales manager of Lifestylepanel P/L for NZ, Arvin Lawler, suggests that he can deliver all the key elements to meet the expectations of guests for quality information, communication and entertainment into one single easy to use appliance and interface. The second generation of the Lifestlyepanel meets the challenge that accommodation providers often have – the frustration of guests who are unable to work or be informed/entertained by their in room entertainment. Movies-on-demand, free-to-air and cable TV, Internet and wifi can all be accessed by the remote control or wireless keyboard, along with hotel and local information. The Lifestylepanel television can be purchased outright or there are rent to own options. The system is complemented daily rate options allowing full flexibility for the hotel to manage all income streams the system generates. Importantly, with IPTV accommodation managers can manage content. By selecting easy-to-use templates the accommodation provider can edit and impart text, images and video clips to compose promotional material on the property itself to inform guests in a very exciting and visual way what facilities your complex offers such as dining, bars, spas, gyms and children’s offerings. These have the facility of being able to be personalised with guest name and, if available, their photo. It can also allow you to promote other businesses in your locale (for a cost) such as restaurants, shops, salons, theatre and tourist attractions - flexibly: easily added to or deleted from. This adds a new dimension to upselling guests rather than just tent cards on mini bars and ads in lifts. You can simulcast movies to any number of rooms, allow your guests to select from a library of titles or the usual free-to-air and paid solutions. Add to this the freedom to add a guest welcome message, account review facility, room maintenance notice and a lot more extras. By Brent Leslie, Industry Reporter

Case Study – Ramada Couran Cove Island Resort:

Couran Cove selects up-to-the-minute IPTV RAMADA COURAN COVE ISLAND RESORT ON SOUTH STRADBROKE ISLAND BECAME PART OF THE RAMADA GROUP IN JULY AFTER IT WAS PURCHASED LATE LAST YEAR BY BRISBANE BUSINESSMAN CRAIG DOWLING OF COURAN COVE HOLDINGS. The 350-room resort underwent a very major refurbishment to meet the exacting standards of its unique clientele and the rigorous performance levels set by Ramada. The refurbishment included a complete installation of an up-to-the-minute IPTV system by Lifestylepanel P/L. Keith Blott, director of sales & marketing for Ramada Couran Cove Island Resort told AMG, “The old system did not allow us to provide the level of service to our guests that we wanted to give. “Utilising a smart TV with the Lifestylepanel system means that we are

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offering superior technology for our guests and giving them access to resort services that we could not previously provide. Examples are being able to book reservations at the restaurants or purchase food items from the general store from the TV browser. Also, the growing trend in homes is towards smart TVs to check Internet/social media which this system provides.” Installation and set up for the resort was quite painless. “No disruption at all – very smooth and straightforward. And the reaction from staff is excellent – everyone is surprised at just how easy the system is to operate and understand. Guests have also commented very favourably about the system.”


technology t Docking Stations:

A faster future for hospitality docking stations THERE WAS A TIME WHEN THE MOST A GUEST EXPECTED WAS A CLOCK RADIO NEXT TO THEIR BED. THAT WAS IT: A CLOCK THAT PLAYED THE RADIO, SO NOVEL! Today much more is expected. Long gone is the clock radio, it has been replaced by gadget after gadget: now there are wireless, synchronised, all singing and dancing gadgets on the market; gadgets like iPads and iPhones, gadgets that charge iPads and iPhones, that control lights and replace television remotes. But with so much technology already out there and more to come, what to choose? There is so much confusion now with the onslaught of smart technology that it has become difficult to know what to invest in. Our love affair with the smart phone has recently been confirmed by Google research, ranking Australia the second biggest smart phone user in the world. Meanwhile Smartphone users are in the majority in New Zealand, with more than half of all Kiwis using their mobile phone to access the Internet. With increasing numbers of people travelling with smart phones, iPads, laptops and iPods this has a huge implication on the type of in-room technology that needs to be provided within the accommodation industry. Guests prefer to use their own electronic products in the comfort of their rooms and the industry is continually looking for exciting new ways to ensure that their guests can enjoy superior comfort and entertainment. These devices need to not only allow the guest to recharge their phone iPod, iPad and laptop systems but the guest also needs to be able to wake up to their own music and what a bonus it would be for them to relax and view their family photos, social media and stored entertainment on the in-room TV. Some iPod clock radio models and newer docking stations may also synchronise wirelessly through blue tooth with the guest’s other electronic gadgets allowing them to have their personal

settings displayed. For business travellers it may be essential that they have access to the latest in-room technology, as it may be critical to the productivity and overall success of their trip. According to a recent survey by Technology 4 Hotels almost half of all the business travellers who had problems using in-room technology say that they would never stay at that property again. Therefore there is a need for hotel technologies to create innovative products and smart design concepts that are in tune with today’s most up-to-date technology and the modern guest’s more sophisticated expectations. Providing an innovative, up to date docking station in guest rooms is no longer a luxury, but a basic need of modern business guests and more tech-savvy tourists. Incredibly it was revealed that 35% of the 10,200 hotels that participated in a recent survey by the American Hotel and Lodging Assn, in conjunction with Smith Travel Research, now offer iPod docking stations in their guest rooms. Evidence that this technological trend is rapidly becoming the expected industry norm is everywhere and means that there is an urgent demand for more information, greater product clarity and more varied choice. Hotel managers have come to realise that exploring the options currently available for docking stations is like negotiating a minefield and demands impossible decisions. Jan Strijker director of Brantas International distributes a range of clock radio docking stations to the industry in New Zealand, with the iHome units one of his bestsellers. The units are extremely well made and provide excellent sound quality. Their point of difference to other units, he says, is that they are the only units on the market with specified hotel features. The units have a range of features that work well in accommodation

“...The 350-room resort underwent a very major refurbishment to meet the exacting standards of its unique clientele and the rigorous performance levels set by Ramada...”

Ross Coldwell, managing director of Lifestylepanel P/L, said that his company can deliver all the key elements to meet the expectations of guests for quality information, communication and entertainment into one single easy to use appliance and interface which is why it is perfectly suited to Ramada Couran Cove Island Resort. “Wi-fi coverage was a major concern due to the spread out nature of the property; many guests now travel with multiple portable devices and require wi-fi access. The Lifestylepanel TV has full wi-fi access embedded into the TV and allows multiple device connectivity using one unique code on the TV – very simply for our guests and no staff intervention required, there was also an added benefit to the resort of no additional capital cost to setup an external wi-fi network”. Mr Coldwell believes that the Lifestylepanel satisfies both guests and management expectations alike in an affordable package that delivers high quality and good service. By Rosie Clarke, Industry Reporter WINTER 2013

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t technology Docking Stations:

properties with alarms that operate as single day alarms only, preventing one guest’s 4am wake up affecting the next guest’s lie in. Furthermore, “hotel low” mode sets the maximum volume at approximately half the normal volume and radio pre-sets that can be accessed but not reprogrammed. There is also a security lanyard so the unit can be secured to a bedside table thus preventing accidental removal from the room and finally a battery back up so that all the information is saved until power is restored.

about quality.

The latest in technology is the IDL45, this unit is so new that it was only released this month. Jan Stijker explains, “It has the iPhone 5 (lightning connector on the top) to play and charge the latest iPhones, iPads and iPods. There is also a USB port on the unit. This can be used to charge and play music from the previous generation 30 pin Apple products. The USB port can also be used to charge non-Apple products such as Android phones, Blackberries and any other devices that can charge via USB, such as cameras, tablets etc.” This means that the iDL45 unit is literally capable of charging pretty much any device via USB. Music can be played from other manufacturers smart phones and MP3 players through the aux-in-jack.

Those who wish to purchase this technology must do their research into what is currently available and what it is that their guests require. The purchase of a well-regarded brand is essential to ensure the best performance with the most potential for longevity and reliability. Endurance Distributers supplies their recommended choices in docking stations, which they can offer in a range of price points.

In Jan’s opinion it is vitally important that guests are able to charge their smart phone overnight so that they know when they wake up in the morning it is fully charged. The ideal position for this is beside the bed because “most guests also use their phone as their alarm clock. They know how it works and they trust it.” Using this assumption, he believes that a docking station clock radio is the perfect solution. Guests always appreciate that their device is fully charged and ready for the next day. There are four things that accommodation providers should look for when purchasing a clock radio docking station: a quality unit with a track record, a unit that is designed for hotels and has hotel features, a unit that is very easy to use and a unit that charges the most possible numbers of mobile devices. Ease of use is something that can be easily overlooked; units should always be very simple to use. One of the most important things hotels need to consider is that products designed for the home market don’t always work as well or stand up to the constant use that a hotel situation delivers. There are plenty of docking stations out there on the market but will a cheaper brand only last a matter of months? In Jan’s opinion it is always better to buy a product that is a made for the correct use and specifically has a “hotel mode”. To summarise, he advises to choose a quality product as not only will it last longer but it will also show the guest that you care

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Chris de Wit is the director of Endurance Distributers; a leading provider of sales and marketing services for some of the world’s premier brands in the New Zealand market place. He explains that “there is no one size fits all philosophy when purchasing a docking station, it requires a great deal of thought as to what type will best suit your guests’ and property’s needs”.

The biggest problem currently is the disparity between Apple and Android smartphones. Docking stations do not have charging for both and therefore a choice has to be made by the purchaser between an Apple or Android compatible docking station. The iPhone 4, 30 pin plug is now obsolete with iPhone 5 using a different size lightning adaptor. This presently leaves accommodation providers with the choice of buying new systems, paying for Apple’s Lightning dock connector to suit current systems or not providing the 58 million iPhone 5 worldwide users with compatible docking stations. This, it seems is a huge and unwanted dilemma but, Chris de Wit suggests there is some good news on the horizon; new dual docking station is to be launched by Philips in October 2013. Philips, yet again, the leader in technological innovation with their newest product: the AJ7260D. This docking station will bring together the old and the new with its dual dock operation. On board will be a 30 pin docking option and a lightning pin connection; therefore it will suit both iPhone 4 and iPhone 5. In addition it will come with USB charging facility (2.1A) for customers using anything other than Apple products. The unit will also have: a dual alarm, FM radio and MP3 link input. It has a very contemporary design with a unique leather texture. This type of unit is now a must for the hospitality industry in retaining its place at the forefront of modern technology and ultimately for you, if you’re looking to meet the expectative demands of your guests. By Amanda Clarke, Industry Reporter


guest facilities gf Guest Movers:

People movers becoming more important in the accommodation industry THEY HAVE BEEN POPULAR FOR SEVERAL DECADES ON THE GOLF COURSE BUT WHY WOULD SMALL UTILITY VEHICLES, SUCH AS GOLF CARTS, BE INCREASINGLY POPULAR IN OUR ACCOMMODATION INDUSTRY? AREN’T NEW ZEALANDERS SUPPOSED TO BE SUPER-FIT, OUTDOORSY TYPES WHO ARE RIGHT AT HOME TAKING ALL-DAY HIKES AND SHIMMYING UP THE SIDES OF MOUNTAINS FOR FUN? Well, even if that was true, (which it increasingly isn’t), the fact is that our hotels, resorts and even larger motels, cater to a growing extent to guests who come from overseas and will judge New Zealand facilities against what they are used to back home or on the international circuit. And small people-movers are now regarded as an integral part of the facilities at many accommodation properties near the upper end of the market. Even in New Zealand, resort-type hotels, motels and even holiday parks are becoming more popular and often part of, or close to a golf course. It seems natural to make use of golf carts or similar vehicles both on the course and in the accommodation sector. Tourists may well want to drive from their room or suite directly onto the course, and then back again afterwards.

But perhaps the biggest driver of the trend is an established shift in the world population demographic – people are generally growing older. Three or four decades ago, the average age of an international tourist was markedly younger than it is today – and younger usually means fitter and stronger.

Reliability, Efficiency, and an Ongoing Commitment to Customer Satisfaction have made Club Car New Zealand’s largest supplier of golf resort vehicles. Try the brand that is number 1 in New Zealand on your property today.

New Zealand Distributors of Club Car

0800 657 595 | www.powerturf.co.nz

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gf guest facilities Guest Movers:

Many people still want to travel, although they might have difficulty walking. And they will certainly be far more reluctant than earlier generations to carry heavy bags – which can lead to quite serious muscular or skeletal injuries – or in the case of dodgy tickers, something a lot more terminal. An economic utility vehicle would seem a very sound investment to prevent any of those events – and a subsequent damaged reputation.

A wide variety of utility vehicles available and they come with electric, petrol and diesel engines. In the accommodation industry, quiet, environmentally friendly and economic electric vehicles are likely to be the wisest choice.

While longer life spans might be welcome, another trend is not – larger people. In relatively recent times, many travellers of some nationalities in particular have grown so much in size that they can find even walking quite difficult. Accommodation providers have little choice but to cater for them if they are to attract their custom. Owners and managers also have to consider their staff. If guests cannot move their own baggage, a staff member has to move it for them – a considerable expense in itself. And even considerably younger employees members can suffer long-term or permanent injuries from carrying heavy bags. That’s when the costs to the provider can really start to mount. A wide variety of utility vehicles available and they come with electric, petrol and diesel engines. In the accommodation industry, quiet, environmentally friendly and economic electric vehicles are likely to be the wisest choice. Although these people-movers can often be adapted to better fit the purpose required, it is worth careful consideration to select the most suitable model from the start. Options include vehicles that come in multiple seat configurations and often have small utility trays mounted to the rear of the car in order to carry luggage. The vehicle’s safety record, cost, resale value, ease-of-maintenance, durability and lifespan should also be considered.

Power Turf New Zealand Power Turf New Zealand is a specialist provider of electric, petrol and diesel commercial vehicles for the tourism sector. The growing trend towards utility vehicles has been noticed by the sales manager at Power Turf NZ, Terry Sullivan. “Electric utility vehicles in the accommodation industry is seen as the next growth phase for our company. With more accommodation providers looking to improve their level of service offering to older or the more discerning customers, people movers are becoming more sought after,” he said. Power Turf is the New Zealand distributor of a wide range of special purpose equipment, including the globally recognised and world number one Club Car range of golf cars, commercial transport and utility vehicles. Club Car has been represented by Power Turf for over 17 years and Mr Sullivan says together they have made the brand “the most preferred golf vehicle in the country. On many of New Zealand’s leading resorts you’ll find a Club Car being operated for the enjoyment of golfers due to its reliability and looks,” he said. “Club Car is recognised as an industry leader for fleet, private transportation, hospitality vehicles, commercial utility vehicles, multi passenger shuttle vehicles, plus rough terrain and off-road vehicles. Club Car’s people and luggage movers are recognised as industry leaders in efficiency and performance,” Mr Sullivan said.

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“The company has more than 40 base models with applications to suit most accommodation and hospitality applications. Club Car is the world’s largest manufacturer of small-wheel, zero-emissions electric vehicles and is at the forefront of environmentally responsible Zero Emission Vehicle (ZEV) technologies. Club Car’s Precedent and Caryall ranges of vehicles have a great reputation for performing in New Zealand conditions.”

He said product firsts include: rust-proof aluminium chasis, self adjusting rack and pinion steering, a Tranquility petrol power train, a resilient Armorflex body, a Powerdive System 48 and new IQ and IQ Plus electric vehicle power and operating systems. “For nearly half a century, it has been the only major manufacturer in the industry that builds vehicles on aircraft-alloy aluminium frames; its exclusive, rustproof steel frames have been tested to be up to three times stronger than its competitors’and can support a total vehicle capacity of 861.8 kg,” said Mr Sullivan. “From fuelling or charging the car to periodic vehicle maintenance, Club Car designs simplicity and intelligent functionality into its vehicles, and in New Zealand, the after-sales and service is provided at a very high level by the Power Turf team. The company’s long history of innovation is deeply rooted in an effort to solve its customers’ requirements.”

E-Z-GO Electric Vehicles EZGO NZ is a South Auckland-based family business that supplies electric vehicles to New Zealand golf courses and industries. It is the only authorised EZGO distributor here for the American company, EZGO Textron. “We started importing and selling golf carts 25 years ago, then realised that by modifying the carts and turning them into utes, utilities, extended vehicles etc, we could increase our market,” said EZGO NZ office manager, Prue Kerr. “Although EZGO is number one golf cart, both in New Zealand and the US, our new focus is the industrial side. Our aim is to show New Zealand companies and businesses how eco-friendly and versatile EZGO electric utes and people movers are. We want EZGO to be a household name.” Mrs Kerr says the company’s vehicles are electric because EZGO NZ believes in sustainability and a green New Zealand. “Our electric utilities and people movers offer a clean, quiet and fume-free way of moving people and goods. From moving guests at hotels, to security carts, to housekeeping carts, EZGO electric carts are a quiet and efficient workhorse.” The client base includes Air New Zealand, Fisher & Paykel and Middlemore Hospital. Service requirements are covered by two fully stocked service vehicles, as well as having service agents at Wellington and Christchurch Airports. Mrs Kerr says the company sees a growing demand for electric people movers and utilities for hospitality and service areas of industry. “This part of our business has increased dramatically over the last 10 years, primarily due to do our products being seen, and people recognising the benefit of using EZGO vehicles for their own industry or organization.” By Brent Leslie, Industry Reporter


guest facilities gf Subsection:

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gf guest facilities Vending Machines:

How a vending machine can add value to your business VENDING MACHINES ARE NOW COMMON IN PUBLIC AREAS, WAITING ROOMS AND MANY OTHER LOCATIONS. MODERN EQUIPMENT CAN BE STYLISH, RELIABLE AND EFFECTIVE AT PROVIDING PRODUCTS THAT MEET CUSTOMERS’ NEEDS AND WANTS, PARTICULARLY WHERE SHOP OPENING HOURS ARE RESTRICTED OR STAFF AND/OR FACILITIES ARE NOT AVAILABLE.

Some suppliers may offer equipment at “no cost” provided you use their proprietary consumables forever. In other words, high margins on consumables are used to offset the cost of the equipment. Installation costs should not be overlooked. • Will you need to have plumbing and/or electrical work performed prior to installation? • Will you need stands, tables or cupboards to store products?

Running costs Apart from electricity, there are three main running costs to consider.

This article is a guide to help you decide whether installing a vending machine in your establishment will work for you. Any one or more of the following may or may not apply to your establishment. You need to have a clear idea of those that do apply so your expectations are met.

1. The cost of consumables related to the turnover and shelf life of products (if applicable). 2. The cost of staff time to restock and perform basic maintenance and cleaning 3. The cost of technical service and out-of-warranty repairs.

Hospitality Are my customers waiting in an area for periods of say, more than five minutes? Will providing vended products save my customers time, help them relax and/or enhance their experience in my establishment?

Convenience Am I often asked where the nearest convenience store is? Are there no outlets nearby that meet my customers’ needs and wants?

Competition My competitors either do or do not provide for customer’s needs and wants. Should I match my competitors or steal a march by providing a service customers don’t get elsewhere?

Profit Provided you have no doubt that there is ample demand for vended products in your location, why not use it as a revenue stream?

Cost of ownership Purchase costs vary depending on type, size, country of origin and whether equipment is new or used. As with most businesses, there are plenty of suppliers offering cheap deals on flashy plastic equipment. Although an offer may seem attractive, when it comes to service or back-up, such suppliers are often nowhere to be found or the equipment is “discontinued” or “uneconomic to repair”.

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It would be wise to ask potential suppliers to provide these details in writing. Return on investment Depending on the rationale for installing equipment, return on investment may result in a profit, break even or loss. Since actual turnover can only be speculated prior to installation, operators are advised to prepare a spreadsheet model that calculates income from sales versus expenditure on capital and operating costs. Adjusting the number of sales in such a spreadsheet model should give a reasonable idea of the break- even point. Experienced suppliers should be able to provide you with details such as average cost of dispense for their particular machine types.

Other considerations Health & Safety – For vending machines that dispense food and/ or drink products, keeping the equipment clean is essential to avoid potential adverse health effects on consumers. Also, in the author’s experience, maintenance and repair costs can be minimised by operators who follow supplier’s instructions. A few minutes each day keeping equipment clean can save expensive repair bills later. If you allocate staff to carry out these duties, make sure they are managed and that provision is made if the staff leaves or goes on holiday. Consumable supply – In populated areas there are companies who can


guest facilities gf

be contracted to restock the machine for you. In more remote sites, other arrangements will have to be made. Often this means doing it yourself, requiring you to store items for restocking. Some items may need to be kept in a refrigerator and used before their expiry date. Security – In some situations, equipment fitted with coin mechanisms or change-givers can be a security risk, particularly if out of sight of staff or security cameras. Your supplier may be able to provide vandal-proof enclosures or alternatively, equipment may be able to be fitted with card readers for credit-card and/or EFTPOS transactions. Selecting a supplier – This aspect is important since well- designed machinery will provide you with many years of service. Apart from inconvenience to customers, if the equipment is a revenue stream, downtime means loss of income. Key considerations include: • • • • • • •

A physical address Years in business Responds to communication in a timely manner Extent of service network (local, regional or nationwide) Availability of spare parts Sale, upgrade and financing options Written warranties on equipment and service

By Lindsay Upjohn, General Vending

Not Just Coffee & Not Just Vending!

80b Kingsley Street, Sydenham, PO Box 175, Christchurch, 8140 P +64 3 366 2220 | F +64 3 366 3630

www.generalvending.co.nz

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p property Property Report:

Signing up to sell your business IT IS NOT SURPRISING THAT WHEN A VENDOR IS ASKED TO SIGN A LISTING AUTHORITY FOR THE SALE OF THEIR ACCOMMODATION PROPERTY OR BUSINESS, THE MAIN FOCUS SEEMS TO BE THE RATE OF COMMISSION. This is understandable, but it is also very important to understand the implications of some of the other wording in the agreement.

Kelvyn Coffey

An aspect that often becomes quite contentious further down the track is that of when a sole agency expires. A listing agreement giving say a three month sole agency should mean just that, but it is not always the case. We have seen a number of agency agreements that require proactive cancellation of the sole agency, usually at a month’s notice, even after the sole agency period has run its course. So, the vendor may believe after three months or longer has passed that they are free to offer a general agency to others if they wish. They then discover that they need to give one month’s notice from the time that they wish to cancel. So, what seems like a three month sole agency can go on forever and a month. If this is not the arrangement you wish to enter into, it would pay to check the wording of the agency agreement. It is not a bad idea to give a sole agency to an agent or broker if they are specialists in your industry and have recent and relevant sales experience and knowledge of your market. The sale of accommodation businesses is a specialised field so this is quite important. When sole agencies are expiring and vendors wish to list more generally, we often hear that they see no harm in spreading the listing far and wide, perhaps including local agents who don’t specialise. If another agency is offering an alternative type of marketing to what is currently being employed, then it may be worth considering. If on the other hand, they are simply going to duplicate the efforts of existing agents by website advertising and the like, they are most likely just going to be putting more agents in front of the same potential buyers. The question is, are these new agents likely to handle an enquiry as well as a specialist? Once an enquiry has been answered and an introduction made, the other agents are effectively disqualified from dealing with that buyer on that property or business. In other words, once the buyer has gone through a certain agent’s door they can’t go back out again as far as your property is concerned. You could run the risk that a good genuine enquiry could go to someone who is perhaps not the most competent person to handle it. Sure, some residential firms may have lower commission rates than specialist brokers, but the difference in the rates could be insignificant compared to having your interests represented in the best possible way for the best outcome. The new Real Estate Agents Act 2008 made agency agreements by necessity a considerably longer document than they once were. The changes were designed primarily to protect the public, however, they also gave added protection to the agents in some ways. An important requirement is that the listing agreement for the sale of any property or business must include a market appraisal based on real and accurate comparative sales data. When this was introduced, we thought that it might (unintentionally) give specialised firms an advantage, because the detailed data required for an accurate appraisal is not easily obtained other than from direct involvement in the market place. We have seen a few agency agreements which don’t include appraisals and can only

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It is not a bad idea to give a sole agency to an agent or broker if they are specialists in your industry and have recent and relevant sales experience and knowledge of your market wonder how widespread this apparent breach may be. If your agent is not providing you with an appraisal of your property or business at the time of listing, ask them why. A modification to the legislation did allow for the agent to state that there was no relevant evidence available on which to base an appraisal. We expect that the intention of this variation is to acknowledge that in some cases for rare and unusual situations, there is no sales evidence available in support of an appraisal, not to allow the agent to simply state that they don’t have any evidence. As of April this year the REAA imposed a further obligation for agents to recommend to their clients that they seek legal advice before signing any document relating to real estate business. This includes not only sale and purchase agreements but also agency listing agreements. Whether you do so, is of course, up to you. In summary, it is a good idea to read agency agreements the same as you would any other legal contract you are being asked to sign and ask questions if anything does not make sense, or is not how you believe it should be. If in any doubt at all, seek professional legal advice. By Kelvyn Coffey, Coffeys Tourism Property Brokers Ltd


Industry Specialists Since 1984

New Zealand Wide HASTINGS

MOTUEKA

Great Entry Level Opportunity

Great Lifestyle Opportunity

Tidy 12 unit motel well positioned in Hastings City’s northern periphery with cafes, restaurants and key attractions in close proximity. A lifestyle/income opportunity that ticks the boxes. A consistent performer ideal for new entrants with fair rental and good returns.

Lease

$295,000

Ref #8955

Agent Details Chris Wong P: 09 551 0154 M: 021 106 6188 E: chris@coffeys.co.nz

This high profile, centrally located business enjoys the expanding backpacker trade for the famous Abel Tasman National Park. Situated on a valuable 1809sqm site, the lodge is currently configured for up to 40 persons. There are three separate backpacker buildings and the bonus feature is a separate three bedroom, two bathroom owner's home on a spacious section. Revenue figures are good and growing.

FHGC

$1,195,000

Ref #2252

Agent Details Anne Marshall P: 03 547 9219 M: 021 743 625 E: anne@coffeys.co.nz

METHVEN

GREYMOUTH & OAMARU

Quality Modern Lodge

Bella Vista Motels

Lovely modern lodge property operates like a motel and comes with a cosy bar and restaurant which could be leased out if desired. The accommodation side of the business is very strong and the new owner can look to increasing revenue from the bar & restaurant. A very popular property set in the heart of Methven township the ski capital of Canterbury, outdoor pursuits are beginning to attract overseas tourists over the warmer months.

FHGC $1,750,000 Ref #1236

Be part of the Bella Vista Group with properties throughout New Zealand. The Oamaru and Greymouth motels are well performing businesses and presented to a very high standard in line with the Bella Vista model. Either location offers an ideal opportunity to get into the accommodation industry with a good network of support.

Agent Details Alan Ironside P: 03 550 0465 M: 027 522 1689 E: alan@coffeys.co.nz

Oamaru Lease

$575,000

Greymouth Lease

$740,000

Ref #5793 Ref #3224

Agent Details Inky Stove P: 03 550 0471 M: 021 182 6940 E: inky@coffeys.co.nz

CAMBRIDGE

CHRISTCHURCH

Prime Location with Huge Potential

Prestige & Profit - Prime Location

Existing 34 unit motel on 12,881sqm block with conference and functions centre. Refurbish, Upgrade and Reposition or Redevelop into a retirement village or alternate accommodation. An astute buyer will know what to do with this property.

FHGC $2,650,000 Ref #9004

Agent Details Chris Wong P: 09 551 0154 M: 021 106 6188 E: chris@coffeys.co.nz

This is one of Christchurch’s highly regarded motels, with 18 units, a great reputation and loads of repeat guests. Inspection would not disappoint. Located on Papanui Road (the “Golden Mile”) close to the CBD (the “Rebuild Zone”), nearby to the popular Merivale Mall and a wide range of restaurants and cafes. Revenue and profitability is excellent and these results look set to continue. Spacious separate 4 brm res.

Long Lease $1,100,000 Ref #1896

Agent Details Kelvyn Coffey P: 03 550 0459 M: 027 432 0565 E: kelvyn@coffeys.co.nz

www.coffeys.co.nz Freephone: 0800 263 339 Telephone: +64 3 366 9040 Facsimile: +64 3 366 9051 E-mail: info@coffeys.co.nz


p property Management Rights NZ:

Management rights and the business WHO WOULD HAVE THOUGHT A YEAR ON FROM ITS INCEPTION, THE MANAGEMENT RIGHTS ASSOCIATION OF NZ AND ITS MEMBERS WOULD BE SUCH A STRONG VOICE IN DEALING WITH ALL ASPECTS OF THE INDUSTRY. Aspects such as Government agencies, notification on all paragraphs of litigation and its effects on the industry to assisting with situations that may arise between those concerned within the industry. MRANZ was officially incorporated back in 2012 after a lot of dedicated work by a number of people. Two of the stand outs were Denise Marsden, still our legal advisor and Gordon McGregor, past chairman, who worked through the challenges of creating an organisation that would be able to assist its members in many areas A year on the association has a new chairperson and committee formulating new directions, membership drives and objectives are being changed too, with many specific requests by members. The starting point was of course to gain more members. Analysing the number of possible members throughout New Zealand that may join, it soon became apparent that MRANZ would not be a viable organisation to stand on its membership alone. Research and reports prevailed along with many discussions with our fellow associations across the ditch in Australia. As chairperson of MRANZ Inc, and with the support of the MRANZ committee, we have undertaken formal discussions with the CEO and National President of ARAMA (Australian Resident Accommodation Managers Association). They have been extremely helpful in explaining the benefits that MRANZ along with their supporters and associates could gain. Becoming what would be another arm to ARAMA, while still having our New Zealand identity will add to the strength in numbers of

both organisations being under the one umbrella. New Zealand and Queensland rules and regulations are very similar and would certainly assist with a far easier transition in formalising the possible merger. We envisage that the two organisations will work closely together for a favourable future outcome. As the Management Rights industry continues Tony Brindle to face many new challenges, by way of the Unit Titles Act 2010 and Unit Titles Regulations 2011 implementation, and other legislation, it has to be imperative that as an organisation we pass on to the members all the information and benefits we can. Management Agreements, the value of Management Rights and in some cases the Letting Business that are associated with them, are a hot topic that has surfaced lately, mainly because of the security of the agreements members have with the body corporate and the individual owners. It is a fact that most of these agreements could be contested by the body corporate, driven often by a single disgruntled person pushing a cause. Whilst members may have a good relationship with the body corporate now this can change in a heartbeat. As agreements come up for renewal there will undoubtedly be many lawyers contracted by all parties concerned to minimise and finalise management agreements and their content. The challenges that I will face in my tenure as the chairperson of MRANZ, along with my past experiences within the hospitality Industry Hotel/ Motel Ownership, BOP Tourism board member and my current 13 year Ownership of Management Rights Business, will place me in the unique position of being able to assist all those associated within the industry to best of my ability. By Tony Brindle, Chairperson, Management Rights Association of NZ

New Manager Profile:

Challenges and rewards THE EVER CHANGING GOVERNMENT, COUNCIL AND INSURANCE REQUIREMENTS FOR PROPERTIES CHANGING HANDS IN CHRISTCHURCH HAVE BEEN OVERCOME BY THE GOODWILL AND CO-OPERATION OF BOTH THE VENDORS AND THE PURCHASERS TO SETTLE THE SALE OF THE BELLA VISTA MOTEL IN CHRISTCHURCH. The new owners, Janice and Graeme Stanbury could see the benefits of owning a high profile accommodation business in a market which is short of accommodation and probably will be for some time. Graeme brings management experience and Janice retail management experience, and together will enhance a business that has been well established by the previous owners, Tim and Janet Henderson.

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ACCOM MANAGEMENT GUIDE

Purchasers Graeme & Janice Stanbury pictured with Coffeys Salesperson Inky Stove and Vendor Tim Henderson.


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No matter what sort of accommodation business you’re in, from resorts and hotels to ski fields and mines, motels, caravan parks, permanents and B&B’s, HiRUM has you covered.

Call us now to discover why HiRUM is fast becoming everyones product of choice.

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p property Management Rights Australia:

The new wave of resident managers are becoming more entrepreneurial, wanting to make sales and rent other properties outside their complex

The in’s and outs of obtaining a licence RESIDENT MANAGERS HAVE A FEW OPTIONS AVAILABLE TO THEM AS FAR AS LICENSING GOES IN QUEENSLAND, AUSTRALIA. The resident letting agent licence is the most common licence as it allows you to rent out managed units as well as operate a trust account. Peter Ford The restrictions with this licence are that you must reside full time in the complex you manage. The principal place of business must be located in the complex you are letting. You are unable to make sales of any units within your complex. In order to obtain your RLA or resident letting agents licence, you must first complete six units of competency through a registered training organisation. This is usually a two-day course that can be completed in class or via correspondence. These include: •

BSBSBM406A Manage finances or BSBSMB406A manage small business finances

CPPDSM4006A Establish and manage agency trust accounts

CPPDSM4007A Identify legal and ethical requirements of property management to complete agency work

CPPDSM4010A Lease property

CPPDSM4015B Minimise agency and consumer risk

CPPDSM4016A Monitor and manage lease or tenancy agreement.

Once you have successfully completed your studies your registered training organisation will issue you with a statement of attainment which together with a PAMD form 1-3 (application for resident letting agent’s licence) needs to be submitted to the Office of Fair Trading Queensland. The form can be downloaded from their website. There is also a requirement to provide the OFT written proof of body corporate approval that you can carry on a letting business within the complex. More and more managers are deciding to obtain a full real estate agents licence for a number of reasons 1. The ongoing cost of the RLA and the full agents licence are the same 2. The full agents licence allows you to make sales adding significant extra income 3. You are able to rent properties and make sales outside your complex

FULL REAL ESTATE LICENCE COURSE FOR RESIDENT MANAGERS  Ask about our RLA upgrade to a Full Real Estate Licence and SAVE Time & Money  Courses available in most areas including Sunshine Coast, Gold Coast, Brisbane, Toowoomba, Townsville, Cairns, Rockhampton, Hervey Bay & Mackay

4. You are able to reside offsite (with body corporate approval) The majority of complexes are run as a family business and the Property Agents and Motor Dealers Act states that anybody that offers anything for sale or rent must be licensed, so that would need both husband and wife in most cases to hold an RLA. The new wave of resident managers are becoming more entrepreneurial, wanting to make sales and rent other properties outside their complex so they opt for one of them to hold a full agents licence and the other to have a salespersons certificate. Not only is it cheaper to do so in ongoing licensing fees to the office of fair trading but it gives way more scope in your business. You may be advised by your solicitor or accountant to obtain a corporations licence as part of your risk management strategy.

Launching the new wave of real estate professionals in Queensland

www.completepropertytraining.com.au I Call 61 7 5438 8922

You can only apply for a corporations licence after you have obtained your individual licence. By Peter Ford, Complete Property Training

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p property Management Rights Australia:

Why do Australian lenders love management rights?

THE AVERAGE PUNTER COULD BE FORGIVEN FOR THINKING THAT HERE IN OZ LENDERS ARE FALLING OVER THEMSELVES TO THROW MONEY AT THE MANAGEMENT RIGHTS AND ACCOMMODATION INDUSTRY.

Mike Phipps Finance ACL (364 314)

You only have to do a bit of industry research to be confronted with any number of advertisements from banks and others proclaiming a desire to assist the intending purchaser. Given that in the majority of cases the lender’s security lies in the going concern value of the management rights business this apparently bullish approach to the industry may at first seem puzzling. For business people more accustomed to lenders requiring full real estate security the situation can indeed be perplexing. So why do Australian banks see management rights (and for that matter motels) as such an enticing lending risk as compared with other businesses? Firstly, lenders place a significant degree of reliance on the legislative framework in which a particular business operates. In the case of Queensland management rights lenders believe that the legislation (BCCMA and PAMDA) provides a reliable and dependable set of ground rules for the industry to operate within. Other states are starting to follow the Queensland example and lenders are taking note. The risk of business values being eroded or agreements being invalidated due to untested or unexpected outcomes is considered as being quite low. The lender’s rights and obligations are prescribed within the BCCM Act and this provides a significant degree of comfort to an intending finance provider. In other states a deed of consent with the owner’s corporation or body corporate achieves the same result. Management rights do not carry many of the operational and cash flow risks associated with the majority of other types of going concern businesses. There is a guaranteed salary paid monthly. Letting income is accounted for via a trust account with the on-site manager being paid commissions on a monthly basis. Aside from the occasional small item there are no debtors, creditors or stock.

mobile:

+61 448 813 090

phone. +61 754 735 531 facsimile. +61 754 735 543 mike@mikephippsfinance.com.au www.mikephippsfinance.com.au

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ACCOM MANAGEMENT GUIDE

There is no reliance on significant plant and equipment and therefore none of the fixed capital costs associated with many other business types such as manufacturing. Cash flows are extremely predictable in permanent sites and generally predictable in holiday resorts and short stay sites.


crebrokers Beachcomber Coconut Caravan Village Freehold Going Concern $5,200,000 plus SAV

The Portsea of the north. Your beach front park is a wonderful holiday destination. The facilities are fabulous. The children’s play area and pool are first class and full of fun. Enjoy a swim with the parks friendly ornamental crocodile or enjoy the fun of the games room or quiet walks along the beach or in the rainforest. The award winning gardens set off the accommodation that covers all needs from tents to deluxe villas. Your onsite restaurant and cafe provide stunning views of Dunk Island and the Coral Sea. Contact the agent for further details: Ross Collins +61 4128 31045

CRE Ref # 70476Q

Hermitage Motor Inn

Leasehold Business $750,000 plus SAV

Easy to operate and recently renovated 3.5 star motel located in one of Victoria’s strong regional centres. Comprising 18 rooms, inground pool, off street parking plus a large 3 bedroom 2 bathroom residence with study and open plan living areas. Strong corporate and tourist trade. Not a cent to spend on this remarkable motel which is well maintained and easy to operate. Long lease available and inspections are a must. Contact the agent for further details. Hugh Roberts +61 4175 82081

CRE Ref # 30406L

Motel Traralgon

Leasehold Business $240,000 plus SAV New 21 year lease. 21 room motel situated on a large parcel of land with sweeping views over the LaTrobe Valley. All rooms feature off street parking, tea & coffee making facilities, airconditioning & digital tv’s. The motel includes a large open restaurant with commercial kitchen (currently not in use) and a two bedroom residence. The motel has two street frontages which offers access for trucks and trailers. The business is underpinned by a constant flow of tourists, workers and corporates alike. This opportunity offers a 35% yield with consistent turnover and a healthy bottom line. Contact the agent for further details. Hugh Roberts +61 4175 82081

CRE Ref # 30773L

Star Hotel

Leasehold Business - $1,800,000 Plus SAV Leasehold Gaming Hotel with 18 EGM’s; located in a popular tourist town at the foothills of the Victorian Snowfields. Twenty-six year (26) lease with a reasonable rent. The hotel comprises of a lounge, bistro, modern large kitchen, TAB, alfresco dining and a two bedroom manager’s apartment. Turnover is in excess of $1,900,000 (approx) with over $700,000 (approx) per annum in gaming income. Inspections are strictly by appointment. This is the only gaming hotel in town. Contact the agent for further details. Kevin Connolly +61 4127 72290

CRE Ref # 50581L

Sunshine Motor Inn

Freehold Going Concern $7,000,000 plus SAV This remarkable AAA rated 3.5 star 44 unit motel is situated just 15 minutes from Melbourne International Airport and the CBD. Recently renovated throughout with a strong consistent year round trade. The property features a fully licenced restaurant, function centre for 180+ people, lounge area with bar & indoor / outdoor seating, pool, spa, large off street parking area, large laundry & residence. A rare opportunity to secure a strong business on a land holding of 7393m2 suitable for further development. Contact exclusive agents CRE Brokers. Contact the agent for further details. Hugh Roberts +61 4175 82081

CRE Ref # 30771

Beachcomber Motel & Apartments Leasehold Business $675,000 plus SAV

Solid brick motel with immaculate presentation and not a cent to spend. Large variety of room types and apartments including 2 bedroom, spa and wood fire. All rooms are ground level with WIFI and new large screen digital TVs. Quiet location and less than 5 minutes walk to beach, shops and restaurants. Ample parking for boats, trailers etc, sheltered and private BBQ area as well as a guest laundry. Spacious 3 bedroom residence. Contact the agent for further details. Julie Bennett +61 4084 82089

CRE Ref # 30779L

Loc. Tel. Fax. Web.

www.crebrokers.com

5 Jarrah Dve, Braeside +61 3958 05600 +61 3958 03355 www.crebrokers.com

The information provided herein related to all businesses and/or property, offered for sale, has been supplied to Connolly Roberts Estate Agents Pty Ltd T/as CRE Brokers by the vendors of the properties or businesses. Whilst the information contained herein is provided in good faith, Connolly Roberts Estate Agents Pty Ltd T/as CRE Brokers advises that it is acting as a mere messenger of the information provided by the vendors of the properties and it does not take any responsibility for any errors, omissions or misrepresentations that may be found. Connolly Roberts Estate Agents Pty Ltd T/as CRE Brokers recommends that you seek independent advice and make your own full and proper enquiries before acting on any of the information contained herein. Subject to any terms implied by law and which cannot be excluded, Connolly Roberts Estate Agents Pty Ltd T/as CRE Brokers accepts no responsibility for any loss, damage, cost or expense incurred by you as a result of any error, omission or misrepresentation herein.


p property Management Rights Australia:

When making decisions about credit policy and suitable security Australian lenders always try to understand the market demand for the asset being financed.

For the first time management rights operator the business profile provides an opportunity to leverage skills and knowledge which have been gained from a wide variety of previous work and life experience. With no need to control stock, work in progress, plant and equipment, debtors or creditors the new industry entrant is free to focus on managing the business and driving growth.

Specialist Management Rights Lawyers 

Buying

Selling

 

Again, the low risk of management failure and the infrastructure of support for the new manager is seen by lenders as a significant risk mitigant. When making decisions about credit policy and suitable security Australian lenders always try to understand the market demand for the asset being financed. In the case of Queensland management rights there is a clearly established, healthy and historically strong market for these businesses. The underlying economic growth in Queensland combined with strong tourism demand would suggest that the market will continue to prosper. Again, the Queensland trend is starting to be reflected in other states as well. All of these attributes add up to a business risk profile which has led many lenders to offer the market highly competitive finance packages. There are few other going concern businesses attracting the kind of funding offers now available to management rights borrowers, particularly where gearing is concerned. In fact, the question needs to be posed.

Extensions Advice on all Body Corporate Issues

S M A L L

A wide range of industry specific software supported by the availability of any number of consultancy services means that day to day technical management of the business can be handled by most competent first time managers.

M Y E R S

Are the lenders risking loving the management rights industry to death? COL MYERS

H U G H E S

L AW  B U S I N E S S  R E L AT I O N S H I P S

We act for buyers and sellers of management rights in ALL STATES of Australia

P: +61 7555 26666 M: +61 417 620 516 E: cmyers@smh.net.au W: www.smh.net.au

The fact is that as more and more people attempt to either enter the industry or increase existing investments demand for higher gearing has driven competitive forces within the finance industry. Not so long ago 50% gearing was pretty much to best a borrower could hope to achieve. Today it not unusual to see lenders offering gearing levels up to 70% with significant interest only options. Even for motel leases we are seeing consistent 50% lending available with specialist banks being very confident in the sector. Needless to say it’s important to ensure you engage a qualified professional to guide you through the purchase and finance minefield. Consider me the guide! By Mike Phipps, Mike Phipps Finance

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