(Quebec) After more than two years in office as president of the Hotel Association of the Quebec region (AHRQ), Michelle Doré is about to meet two of the most important goals it had targeted, either reduce the commission charged by online bookings for one night companies and limit their power of sale in Quebec.
Not possessing the negotiating weight of the large hotel chains such as Fairmont and Hilton, AHRQ decided during the last year to form a committee of independent hotel owners, representing approximately 6,000 rooms to 10,796 in the region Quebec.
“We wanted to have more power to negotiate. AHRQ is unique as an association since 85% of members are independent, notes Ms. Doré. And they [the online reservation sites] have been very responsive to our requests. ”
For now, for Expedia.ca is about 25% commission per night that independent hoteliers yield to the online booking platform. To Booking.com is between 15% and 18%. Ms. Doré refused to approve the new dimension going to take Expedia.ca, noting that a contract was signed, and the other is still in the hands of lawyers.
“We want to make sure everything is correct, but the percentage is down to Expedia.ca, she says, pleased with the work done so far. According to our information, it would be more than 4% decrease.
With the decrease of body side through the website bookings, independent hoteliers will therefore have more money in their wallets to pay their employees and in particular to date to their building. “We wanted a healthier business relationship with companies. Our contracts which were renewed every year, dated from 2008, “says the president. “When you pay outrageous fees, it is more difficult to reinvest in your property. In the Quebec City area, is roughly $ 16 million that went in commissions per year. ”
The primary objective of the agreement signed in 2008 was to introduce foreign hoteliers in the region without having to spend huge amounts of money for advertising. “We had no idea that one day they [intermediate] would seek customers within Quebec itself, argues Ms. Doré.
Other requests including AHRQ has made and Booking.com Expedia.ca, there stopping the purchase of domain names. “When you go on the Internet and that you register the name of a hotel, the first site is often that of a reservations company. People think it’s the hotel website and they book laments Ms. Doré. That is why we asked them to stop advertising with our name. We want to get our local client. ”
How are we going to limit advertising to Quebec customers? “From the IP address of the computer. For example, when our client Saguenay-Lac-St-Jean we seek, the announcement of the OTA [Online Traveler Agency] will no longer appear. In comparison, the customer in France that would have the same search in these search results paid links OTA “says Ms. Doré.
Along the last months of toil AHRQ has not gone unnoticed in the rest of Canada, as the Canadian Hotel Association contacted Ms. Doré. “They look at what we have achieved and what we have established as reconciliation with our group members. We must talk to advance … ”
Upon arrival in his post in 2013, Ms. Doré had also promised to get things moving in the illegal hosting package. “We always work very hard. In 2013, there were
350 illegal settlements, and one can think today there are nearly 400 in Quebec City and in central neighborhoods. Our laws are no longer adapted to reality. The good news is that you can assume that announcements will take place this fall, “she says.
In the coming years, the president of AHRQ notably aim to continue to develop communication between hoteliers. “You also see how the industry will be in 2020. This is what is coming. What changes? “Argues Ms. Doré. “Associations will have the challenge of understanding the public demands that are extremely changeable.”
The hotel, a “different” industry
The accommodation represents the largest share of tourist spending, according to a study commissioned by the Association of hoteliers in the Quebec City area (AHRQ).
“We are a different industry from others. We do not export a product, we import a consumer, “says the president of the AHRQ, Michelle Dore. “When you exported a product, the value is there and you enrich the local economy. Tourism, when you imported a consumer is much broader as a result. All other sectors benefit, “says the businesswoman.
So where is the hotel industry compared to other industries? “I asked myself the question of how to quantify it,” says Ms. Doré. “It relates to what people? In our study, if 1 is the perfect figure to see how the industry increases the economy of a region, the hotel is 0.83. Second, it is the arts and entertainment to 0.81. The third is the mining, oil and gas 0.75. You will say that the arts and entertainment is local, but they have a lot of subsidies, which is why they relate less to the society. ”
“This means that more hotels will be performing in a region, the more the region will be enhanced,” suggests Ms. Doré. “The hotel is new money for a region. It is important to invest in it. ”
In 2011, according to Statistics Canada data, 34.8% of tourist expenditure related to accommodation in the region of Quebec. Total tourism expenditures are estimated at $ 1.404 billion. Spending on accommodation were $ 488.6 million in 2011.
The study by AHRQ, in 2012, total revenues of the 109 members [now 111 members] were $ 301.6 million (before taxes).
Since 2007, the total number of available rooms has declined 9.7%. Between 2012 and 2014, the region lost 835 rooms. These are the smaller facilities (less than 40 rooms) that were the most affected with a decline of 23.1% available rooms since 2007. “Perhaps those who are most affected by illegal accommodation ‘ notes the president of the Hotel Association of Québec area, Michelle Dore. In 2014, the average annual occupancy rate has reached a record high, with 61.7%. “It must be taken into consideration that the hotel Le Concorde, situated on Grande Allée, was closed for part of 2014 and also the Manoir St-Castin, Lac Beauport to,” concludes Ms. Doré.
Increase in the average price per room
The average price per room rented in the Quebec region since 2007 jumped $ 14.85, to $ 136.75 US dollars in 2014. For small establishments (less than 40 rooms), the average price per room has increased 25.4% during this period, from $ 89.90 to $ 112.76. For establishments with 40 to 199 rooms, the increase in cost of the room was a little less than 10%, from $ 115.38 to $ 126.60. Finally, for large establishments (over 200 rooms), the average price per room has increased by 12.7% between 2007 and 2014. After having adjusted their prices downward in 2013 (- $ 1.28 for the average price), good tourist year of 2014 business has allowed them to increase their prices to $ 159.12 per room.
This is the progress of revenue per available room since 2007 for all categories of establishments. These are smaller institutions that have experienced the largest increase, with growth of 35.8%, or $ 35.96 in 2007 to $ 48.83 in 2014. In 2014, the average revenue per available room for the hotel 40 to 199 rooms was $ 81.66. For an establishment of over 200 rooms, the average income was $ 107.72, or 18 cents more than in 2008 during the 400th anniversary of Quebec City.