RAB5 JULY 16 OCEAN CITY, MD

THANK YOU! THANK YOU DR. BERGER AND STAFF THANK YOU DR. BERGER AND STAFF Clarion Resort Fontainebleau Hotel Clarion Resort Fontainebleau Hotel Ocean City, MD Ocean City, MD

Welcome & Introductions Pam Lytle-Hess Pam Lytle-Hess –Chairperson –Hess Hotels –1807 Edgewood Road –Edgewood, MD –

RAB5 Treasury and Budget Marketing Trust Fund Balance As Of May 31, 2002 $94,800.49

RAB5 Treasury and Budget 2002 Budget vs. Actual YTDThrough5/31/022002Budget2002ActualVariance Admin.Expenses$5,860.00$697.55$5, Meeting/TravelExpenses$14,000.00$4,550.38$9,449.62

IOC June board meeting in San Diego Extra Delegates represented Region 5 very well Extra Delegates represented Region 5 very well Comments From Comments From –Karl Bissey –John Miller –Govinda Malya

Executive Committee Report Fall Regional meetings are on track. All regional chairpersons were given their F & B budgets and encouraged to get sponsorships for the event. Fall Regional meetings are on track. All regional chairpersons were given their F & B budgets and encouraged to get sponsorships for the event. –We need everyone’s help securing sponsorships! The numbers for this year’s convention were not available at this time, but would be at our August meeting. Our next convention will be at the new OpryLand in Orlando, FL on May The numbers for this year’s convention were not available at this time, but would be at our August meeting. Our next convention will be at the new OpryLand in Orlando, FL on May 7 - 9

Executive Committee cont. Chuck Ledsinger was asked about the status of his employment contract. He stated that he has a year to go on it and is looking forward to re- negotiating to continue his position as CEO Chuck Ledsinger was asked about the status of his employment contract. He stated that he has a year to go on it and is looking forward to re- negotiating to continue his position as CEO Beginning next year there will be one national delegate for each 50 properties the region has as active--minimum 4 delegates Beginning next year there will be one national delegate for each 50 properties the region has as active--minimum 4 delegates –Two of the four spots are for Chair and Vice Chair –With 175 properties, we will still have four delegates

Operations & Standards Committee Report Revised SED cards will be arriving to include owners and management companies Revised SED cards will be arriving to include owners and management companies The Comfort Inn amenity initiative discussed at the Owner’s Conference and Convention was voted unanimously to accept The Comfort Inn amenity initiative discussed at the Owner’s Conference and Convention was voted unanimously to accept –All rooms to have in-room coffee, hair dryers, full sized irons and boards, free local calls, clock radio and no long distance access charge –Effective date is January 1, 2003

Operations & Standards cont. Brand re-imaging update stated that around 100 properties have done nothing to re-image. Brand re-imaging update stated that around 100 properties have done nothing to re-image. –Default notices to these properties were issued June 15. –A report will be given at our August IOC meeting on the revenue performance versus local competitive set of the re-imaged properties. –A copy of the from Brent Russell is distributed to show we can use up all our consumables with old logo first without FSD penalty.

Operations & Standards cont. The committee agreed with Choice that properties will now be able to offer the Wall Street Journal instead of the mandatory USAToday. The property must offer one or the other or both. The committee agreed with Choice that properties will now be able to offer the Wall Street Journal instead of the mandatory USAToday. The property must offer one or the other or both.

Marketing Committee Report Govinda Malya was a guest delegate Govinda Malya was a guest delegate The new enhancements for site were shared. The new enhancements for site were shared. –Utilizes “the power of being there, go” theme –All brand sites use their logo colors –Guests will be able to download the Vacation Directory  leaves an icon of the desktop  is updated each time desktop is connected to the internet

Marketing Committee cont. E-Brochures are easier to print E-Brochures are easier to print –can now have up to four pictures –unlimited space to add rich copy about area attractions with out external links –NO addresses may be listed, but Choice has added the address, which can answer questions 24/7

Marketing Committee cont. The IOC voted unanimously to remove all external links from e-Brochures except those links to your own independently operated web site. The IOC voted unanimously to remove all external links from e-Brochures except those links to your own independently operated web site. –Need to keep potential guests on the site and book  cheaper (no third party commissions)  promote brand loyalty –Links may actually connect to our competition’s web sites

Marketing Committee cont. Choice will soon have a template available that will allow properties to be sure they are positioned correctly on GDS Index Points Choice will soon have a template available that will allow properties to be sure they are positioned correctly on GDS Index Points Current fee for Pegasus is $2.00, but that rate has been in place since 1996 and Choice is getting pressured to accept a rate increase or get turned off their system. Choice is negotiating, but thinks it will increase to $3.75 soon. Current fee for Pegasus is $2.00, but that rate has been in place since 1996 and Choice is getting pressured to accept a rate increase or get turned off their system. Choice is negotiating, but thinks it will increase to $3.75 soon.

Marketing Committee cont. The new ECRM initiative was discussed The new ECRM initiative was discussed –It has two components  the analytic engine that crunches and scrubs the data (the who, what, where and how)  the campaign management tool that will recognize customers and their habits to allow us to target market them specifically and directly –It will also be used for guest satisfaction surveys

Marketing Committee cont. The Advertising Campaign is showing results shown in research The Advertising Campaign is showing results shown in research –Reaction to the ad is favorable –Shows increases in brand awareness  Comfort retained 97%  Comfort Suites went from 76% to 80%  Quality went from 86% to 87%  Sleep went from 44% to 49%  Clarion went from 70% to 72%  MainStay went from 13% to 16% Shows increase in calls going through 800-4choice –Previous call volume was 8% vs. 34% during ads

Marketing Committee cont. The fall advertising campaign was reviewed The fall advertising campaign was reviewed –LHOME for leisure  Message: “The farther you get from home, the closer you get to the people who live there.”  $4 million on media buy, TV, Online and intermediary  There will be a promotional tie-in

Marketing Committee cont. Double airline miles for business Double airline miles for business –Message: “The farther you get from your office, the closer you get to your business.” –To run September 23 to December 15 –Cost of miles per qualified stay is 10%  Hotels to pay 7%  Marketing Fund to pay 3%  The board unanimously agreed to the funding arrangement

Marketing Committee cont. Choice Privilege Front Desk incentive Choice Privilege Front Desk incentive –To increase number of applications from 40,000 to 84,000 –Prize drawing open to all mid-scale staff who enroll a guest in CP –Prizes TBD –Entries run during Double Airline mile promo (Sept. 23 to Dec 15) –Winners to be named in The Times

Marketing Committee cont. Travel and Vacation Directory update Travel and Vacation Directory update –New online review of your directory listing with deadline of July 10 –2003 directory will have 4-color picture of property with listing –2002 directory included an atlas, but with a new vendor, our costs reduced from $.834 to $.814 per copy –Directories will no longer be required to be placed into guest rooms, a rack card will be shipped in November with the directories to instruct guests on how to get a copy of the directory

Awards Committee Currently inspecting about 200 properties for first round of Inn of the Year for 2003 convention Currently inspecting about 200 properties for first round of Inn of the Year for 2003 convention The committee is planning the Awards Reception/Dinner event at the Fall Association Meetings to be very special recognition for the gold and platinum winners The committee is planning the Awards Reception/Dinner event at the Fall Association Meetings to be very special recognition for the gold and platinum winners

Education Committee Report by Judy Felton-Carlin Report by Judy Felton-Carlin Karl Bissey was a guest delegate Karl Bissey was a guest delegate

Audit Committee Report by Perry Patel Report by Perry Patel

Strategic Partnership/Technology/ Reservations Committee Report by Lou Zagarino Report by Lou Zagarino John Miller was a guest delegate John Miller was a guest delegate

Our three committees are vital to us. You will be expected to participate during the upcoming events under the leadership of the chairperson. If you do not wish to participate in the committee you signed up for, you must become involved in one of the other two.

Newsletter Committee Update by Chair, Perry Patel Update by Chair, Perry Patel

Fall Association Committee Update by Chair, Judy Felton-Carlin Update by Chair, Judy Felton-Carlin

Marketing Committee Update by Chair, Monica Worrell Update by Chair, Monica Worrell

New GM welcome list. Make a short phone call of welcome and explain what the RAB5 does and when our next meeting is Make a short phone call of welcome and explain what the RAB5 does and when our next meeting is I need a volunteer for each state I need a volunteer for each state

Choice Hotels Update Report by C. Cage Report by C. Cage