In The Big Chair - Larry Cuculic of Best Western

How do BWH Hotel Group’s operations today compare to early 2020, pre-pandemic. And has the pandemic created any permanent changes in the way the company operates?

The hospitality industry has endured an incredible challenge, and I am tremendously proud of how our organization and our hoteliers responded to the pandemic. Our board of directors together with our senior executive team worked quickly to ensure BWH Hotel Group could support our hoteliers through their hardships and protect our company’s financial position. As a result of our responsive and aggressive austerity program, we are now fortunate to be in the strongest financial position in the company’s history and we will leverage this position of strength to increase revenue delivery to our hoteliers. 

As the industry continues its rebound, I am committed to ensuring that we are driving superior revenue to our hoteliers, providing industry-leading support, capitalizing on new development opportunities and providing superior care to our guests. We will deliver on these goals by continuing to strengthen our award-winning loyalty program, increasing brand revenue delivery, exceeding guest expectations when they stay at our hotels and driving our development efforts across key markets in North America and across the globe.

The hospitality industry is changing as the lines blur between hotels and short-term rentals, accelerated by the pandemic as more people are able to work remotely or combine leisure and business travel. What is BWH Hotel Group doing to adapt to new consumer demands?

While the pandemic has had an impact on remote work, a combination of business and leisure travel is something we have seen in the industry for some time. Some of our brands in the boutique segment such as Aiden and Vīb offer open spaces, modern lobbies and cocktail bars where our guests choose to work during the day and socialize in the evening.

In addition, with approximately 4,700 hotels around the world, many of our properties are in destinations ideal for a blend of leisure and business travel, and many of our properties provide business centers, meeting space and enhanced technology to meet business needs. We continue to monitor the evolving needs of our guests and we will continue to do everything we can to meet and exceed those expectations.  

We’ve seen an accelerated adoption of contactless technologies – self check-in, chatbots, QR codes, etc. – in the last two years. How far will BWH Hotel Group go with automation in the hotel experience? What roles do you think will always need to be fronted by a person?

While contactless technologies are being adopted where there is a tangible benefit to our guests, we believe that guests still desire a friendly face and personal interactions that “connect.” We will continue to evaluate the level of technology that guests expect, but we will always want our guests to know that we are there when they need us – be it at the front desk or in the breakfast area. 

How important is “book direct” for BWH Hotel Group brands? And what can be done to capture more bookings in that way?

Guests that book direct with Best Western Hotels & Resorts and WorldHotels enjoy the benefits of our low-rate guarantee and are able to utilize our Best Western Rewards and WorldHotels Rewards loyalty programs and benefits. Loyalty members drove approximately 80% of our company’s direct online bookings amid the pandemic and we need to make sure that we are bringing our loyalty members value on a consistent basis. To help capture more direct bookings, we will continue to showcase the value that our guests can receive through cost savings and loyalty program benefits.

Recently we launched the BWR Pay with Points program which provides our valued rewards members with greater access to travel regardless of how many points they have in their account. Through this program, consumers who do not have enough points for a free room can discount their room rate by using BWR points. With BWR being the only loyalty program in the industry in which points never expire, Pay with Points is just one of many investments we are making into our industry-leading loyalty program.

We've touched on direct, but OTAs are a necessary part of the distribution ecosystem. What are some of the best ways of ensuring that relationship works for BWH Hotel Group?

Our preference, of course, is that guests book direct on bestwestern.com, where guests and BWR loyalty program members are offered the lowest rate and can rely upon our low-rate guarantee. We recognize that some guests may want to compare pricing on an OTA website; however, we are hopeful that guests realize, over time and through their personal experiences, that the lowest possible rates are on bestwestern.com and that by avoiding OTAs they can participate in the BWR loyalty program where points never expire, and points can be used for free night redemptions as well as our BWR Pay with Points program. 

In the last decade, airlines have accelerated the “unbundling” of their product. What is your view on this strategy for hotels – for example – à la carte pricing for housekeeping, use of a pool, early check-in, etc.

Our philosophy is that our rates should generally be all inclusive and transparent. We recognize, however, that there are circumstances when guests want certain flexibility, for example early check-in and late check-out. These guest opt-in programs are an opportunity for hotels to generate additional revenue while responding to guest requests.

What are the most critical elements of the guest experience in order to drive repeat business? Where are their opportunities for BWH Hotel Group to generate more brand loyalty?

We have to be able to demonstrate our ability to care for the guest, as the hospitality industry at its core is about caring for the guest and overdelivering on the expected experience. Amid the pandemic, guests have come to expect enhanced cleaning standards and we were the first in the industry to roll out enhanced cleaning protocols. Recognizing that travelers continue to be more concerned than ever about cleanliness, these higher level of cleaning standards and operational best practices provide reassurance to guests interested in traveling again that they will be assured a safe stay.

We also need to continue to gather the learnings from our loyalty business to understand our guests on a granular level. We have to know what motivates them to stay with us, so we can continue to provide and evolve our loyalty program and hotel offerings.

How do you attract new customers to BWH Hotel Group brands?

Scalability is key and BWH Hotel Group offers hotels across every chain segment ranging from economy to luxury. In addition, through the use of our loyalty program, guests have opportunities to utilize points to save on their travel at our approximately 4,700 hotels globally. We also recognize our guests are relying more and more on the mobile experience, and we are investing heavily in that direction. We have been working to make our digital experiences more user-friendly and we are also developing the ability to accept additional forms of payment. This includes making our gift cards easier to use by enabling them to be redeemed online and through our new Pay with Points program, our website now allows guests to designate BWR points for the purpose of reducing the room rate.

We are also working to continue evolving brand perception, which will help attract new guests to our diverse portfolio of brands. To show prospective guests the Best Western of today, social media continues to be one of our most important tools. It allows us to create special connections with key audiences and engage with our community of loyal guests. Through our comprehensive social media strategy, we highlight each of our 18 brands on BW Travel Zone and on platforms like YouTube, Facebook, Instagram and LinkedIn. We also engage with a network of influencers to introduce Best Western to new audiences and spotlight our hotels across their various platforms.

What emerging technologies are you most excited about as far as their potential to affect the hospitality industry?

We are investing heavily in the mobile experience. We understand that more and more guests are using mobile technology to research and then book reservations at our BWH Hotel Group hotels. We want to be and we will be where guests can easily find and seamlessly book rooms at our hotels.

Regarding hotel revenue, we are excited about our development of a newly designed revenue management platform that will ensure our hoteliers recognize and leverage the ability to carefully and thoughtfully manage rates and inventory.

And in what parts of the world do you see the best opportunities for growth for the company?

We’re continuing to open hotels globally on a daily basis across our brands. While the bulk of our inventory remains in the midscale, we see increased opportunities to expand across other chain scale segments, especially in the boutique and extended stay segments. 

We are a global brand focused on thoughtful, measured growth. BWH Hotel Group offers 18 distinct brands across every market segment, from economy to luxury, including lifestyle and extended stay options and we will continue to grow each brand based on traveler demand. Guests can expect to find BWH Hotel Group properties that meet their traveling needs wherever their travels take them. 

What are the top two or three items on your to-do list for the company in the next three years?

After just celebrating our 75^th anniversary, we will continue to evolve to meet and exceed guest expectations. We will remain focused in the areas that we know matter most to our customers, which include investing in technology to enhance the guest journey, ensuring that our loyalty program offers industry leading rewards for which it is known and providing every guest with the spirit of caring and service that is at the heart of our brand.

You began your career in the U.S. Army. What skills from that experience have been most useful in your career in hospitality?

I served in the military for 20 years prior to beginning my corporate career. My military service molded me into who I am today, teaching me values of honor, leadership, commitment and teamwork. I am grateful for my military experience, which has enabled me to truly appreciate the value of remaining calm under pressure and thoughtful in my approach – I recognize that every decision I make, or we make as an organization, impacts people and their lives. That is the essence of the hospitality industry – what I am most passionate about - caring for people.

What advice do you have for young people entering hospitality?

• Work hard every day with integrity, honor and commitment.
• Grow and learn every day.
• Most importantly, be true to yourself and enjoy life’s journey.
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