Case Study: Understanding Hotel Fees


Understanding Hotel Fees

Presented by Red Lion Hotels Corporation | Janurary 19th, 2015

Survey Results of Hotel Management Readers:











There is an appetite out there with franchisees to gain a complete and full understanding of their fees and what they are getting in return for those fees. Descriptive monthly invoices are the first step in ensuring owner satisfaction, with performance metrics tied to fees as a close second. Franchisees want to know they have earned a return on their investment and at what ratio or percentage of cost.


At RLHC, we have streamlined our billing process to one bill per month for each franchisee. As we move forward in 2015, we are developing metrics to provide the owners and franchisees with an ROI on each individual fee. These metrics will be customized for each franchisee based on their structure and program participation: reservation expenses divided by revenue booked for a percentage of revenue; ADR and room night increases from baseline data versus revenue management fees. With committed ongoing support, RLHC does what it can to ensure our franchises grow and thrive. Through innovative technology, turnkey conversion and development programs – all with a flat fee structure – our hotels are supported every step of the way.


Our metrics for all fee based programs will prove to be a comparable or lesser cost or percentage against their measurable to other branded hotel franchisors. RLHC will provide its franchisors with a hotel performance report card on the value per price paid. As our costs and or percentages go down, we will become a better value for hotel owners to franchise with us and utilize our brands.

At RLHC we’ve been focusing our attention on accurate, descriptive billing to our hotels to ensure there is a complete understanding of our hotels fees. As we continue to collect voice of the customer data, we will update our billing process and invoices to ensure owner satisfaction.  We have already shifted to one bill per month versus two based on our owner feedback- voice of the customer.


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