Westin Moves Up The Chain, Wins Top Upper Upscale Spot

<B>Westin Moves Up The Chain, Wins Top Upper Upscale Spot</B>

By Bruce Serlen

Chains in the upper upscale category of this year' survey are conflicted: They want all the cachet of the deluxe brands, while remaining less pricey for the corporate travel buyer and somewhat more mainstream. The unexpected news in the category is clearly labeled Westin, and the news is two-fold. First, Westin Hotels & Resorts makes its first appearance in the upper upscale category this year, thanks to a concerted effort by its parent, Starwood Hotels & Resorts Worldwide, to upgrade the level of guest services and amenities. Westin historically had been an upscale brand.

The second piece of news is that Westin debuts in the number one position, beating its field of nine in the overall relationship of price to value.

"The decision to move the brand up a level was intentional and carefully thought out," said Norman MacLeod, executive vice president of Westin Hotels & Resorts North America. "To enhance the physical facilities, major investments were made in signature properties like the Westin Peachtree Plaza."

The chain also undertook extensive training to get employee buy-in. "Because moving up this way required a change in the culture, it was important that everyone in the organization top-to-bottom understood what we were trying to achieve," he said. And MacLeod is confident that every property in the system measures up to the enhanced expectation. "We think of it as a natural evolution--raising expectations of the brand while providing good price value."

In terms of branding, Starwood faced a considerable challenge. "Brands are most effective as a marketing tool when they stand for something clear and distinct in the customer's mind," said Leo M. Renaghan, professor of services marketing at Cornell University School of Hotel Administration. "Call it a promise. When that promise hasn't been carefully thought out--or changes in a significant way--you can end up diluting the brand's impact."

"What we want to do moving forward is concentrate on innovation because it is linked to meeting the business traveler's expectations," said MacLeod. As an example of a recent innovation, he cited the introduction of the heavily promoted "heavenly bed" program last year, which upgraded the quality of the bedding in guest rooms. According to MacLeod, it has proven quite successful.

The runner-up to Westin in this year's survey was the Peabody Hotel Group, which was in the number one spot last year. Three chains-- Forte/LeMeridien Hotels, Inter-Continental Hotels and Loews Hotels & Resorts--tied for third place.

"The corporate traveler was clearly our focus last year," said Barry Anderson, vice president of marketing for Peabody. "As the traveler's needs continue to evolve, so do we, down to the furnishings in the guest room."

Noting that more business people are bringing their offices with them when they travel, Anderson said the Peabodys in Orlando and Memphis have added built-in desks along with dataports and two telephones. "Many travel buyers are surprised there are only two properties in the portfolio because the name is well-known," he said.

Given its size, Peabody's approach to negotiating corporate rates is straightforward, based on volume. At Westin, on the other hand, the chain participates in Starwood's global sales effort. "The approach to negotiated rates varies, client by client, property by property," MacLeod said. "There are always variables like the time of the year and the volume. Depending on the account, it can be managed specifically by Westin or by Westin and Starwood."

In terms of price generally, upper upscale chains may encounter travel buyer resistance if room rates in key destinations continue to escalate. Deluxe hotels seem to be in a class by themselves because of the very senior-level traveler they target. At the upper upscale level, however, this is not always the case.

"In expensive cities like New York and Boston, corporate travelers are starting either to pass up the trip altogether, if possible, or book a less expensive alternative," said consultant Gerald Pantalone, president of Strategies Unlimited in Boxford, Mass.

At the same time, hotels in the suburbs of these cities aren't an alternative. "With access in and out so difficult, any money you save on the hotel, you spend in lost time and frustration," Pantalone said.

Negotiated rates in these destinations aren't much help either. "During peak travel periods, there can be no rooms available, negotiated rate or not.