Kimpton Expanding Small, Midmarket Program

As San Francisco-based Kimpton Hotels, a collection of 39 boutique hotels throughout the United States, approaches the one-year anniversary of its Kimpton Global Business program, designed for small to midsize companies and associations, Christine Lawson, vice president of sales for Kimpton Hotels and leader of the program, said the program has approximately 5,000 organizations as members.

"The genesis of the program came because we as a company have always been entrepreneurial and attracted companies with that same spirit," she said. "We realized that as we continued to grow and look at our competitive set, that competition was skewing programs toward the large companies that have volume buying power. While we work with those companies as well, we wanted to make sure we had something available for the smaller companies that didn't have the infrastructure for managed travel."

The program's strategy is to provide smaller companies with specialty rates and discounts similar to those larger companies enjoy. Companies that opt into the program—there is no fee to enter, nor a volume quota to fill—receive a flat 10 percent discount off the best available rate at any Kimpton Hotel across the country. This discount is available seven days a week and there are no blackout nights.

The program steadily is currying favor with its intended audience. Adam Siegel, president and founder of Academic Ambassadors, a service that aggregates small and nonprofit companies throughout the country to gain travel leverage, has lauded Kimpton's program for its effectiveness and ease of use.

"I appreciate the fluidity of the program," Siegel said. "Hotels seem to be increasingly working more on the airline model and a negotiated rate may soon become obsolete. With this program, the rate will not be obsolete and members will receive the benefit of a discount regardless of market conditions." Siegel said one-third to one-half of Academic Ambassadors' 2,000 members are involved in the program.

It is especially valuable now as room rates across the country are at their highest levels since before the industry downturn and are still growing year over year. Lawson noted instances when rates are deflated, but the 10 percent discount still applies. Further, Academic Ambassadors' Siegel remains leery of corporate negotiated rates, which, he said, can sometimes have a negative effect. "A corporate rate can sometimes be undercut by market conditions," Siegel said. "If I negotiate a $150 rate, but find out the hotel is running a $130 special, I look bad. This way, it's 10 percent off the best available rate, which encourages members to look toward Kimpton."

The program also provides members support and data feedback. "We track the company's business and we've had instances when a company ended up having much more volume than they thought and, due to that, were able to move into a rate that was more competitive than the 10 percent off BAR rate," Lawson said.

Launched in November of last year, Kimpton is looking to expand the program and envisions adding a group component to it for small and midsize meetings in 2007.