The Independent Hotelier
Peace of mind – James Sullivan, CFO and co-founder of Great National Hotels and Resorts tells H&R Times about adding value and creating certainty for independent hoteliers.
“Life as a hotel general manager is never easy. The modern GM more than ever before needs a strong team around them. They need experience and talent in key departments, especially in revenue management, digital marketing, sales & marketing & finance. All while having complete confidence that their phones are being professionally answered with inquiries being converted to bookings”
In building and developing this team the hotel general manager, particularly in independently owned and run hotels is challenged with recruitment and salary costs which prevent them from having a full team.
Regardless of the recruitment & financial challenges, they are still required to continuously achieve their financial targets in the current quarter, for the next quarter and in the year ahead.
While these are not new challenges as we see a softening in the market and more intense competition new answers may be required.
The Role of Great National
This is where Great National Hotels and Resorts steps into the picture. The independent hotel group, one of the largest of its kind in Europe, takes responsibility for reservations, revenue management, delivering direct business, digital marketing and management of all online travel agencies (OTA’s) and GDS channels.
“In 2009 when my business partner and Co-founder David Byrne invited me to join him in setting up Great National Hotels and Resorts our vision was to establish the quintessential Irish hotel soft brand that would enable the independent hotelier to better compete in a competitive and dynamic marketplace and to bring them the scale and benefits of a global brand without the costs or long term contracts or the need to comply with strict brand operating standards”.
“Now more than 15 years later by bringing our technology and top-class talent to each client, we work to deliver them a world of revenue opportunities. With our continued focus on improvements and innovation and by providing each client with a dedicated manager in each area of reservations, revenue management, digital marketing & online distribution we are bringing a unique blend of “talent and technology” to each hotel”.
“By taking responsibility for these key internal processes and activities we allow the hotel and its team the time and resources to secure other valuable business including but not limited to corporate accounts, tour operator business, weddings and events, conference and banqueting, and special interest groups – safe in the knowledge Great National is looking after their key online revenue & reservations channels. Such time and space is vital to the busy General Managers and their teams” explains James Sullivan, chief financial officer at Great National.
“Imagine it’s Christmas Week and your hotel is buzzing. The hotel GM and their team are focused on busy operations. Strong demand requires room rates to the managed and changed, key OTA’s need to be closed out and you have to update your website for new offers in the New Year, Valentine’s Day, Spring & Easter Breaks with a supporting digital marketing plan to be rolled out, all while ensuring you don’t have to worry about the phones being answered and business being converted over the busy holiday period”.
“It’s a lot to be concerned with and you need the resources to ensure that no opportunity is being missed and that every opportunity is maximised”. This is the exact sweet spot of the support provided by Great National, the hotelier does not need to worry. All of these are taken care of by our team. Our support gives a GM more time on the floor – front of the house – with their customers and team members.
Secret to Great Nationals Success
“We are bringing a unique blend of “talent and technology” to each hotel”.
What is the secret to Great National’s success?
As with many things in life timing and luck can play a part, coupled with a strong understanding of the mentality, pride and passion of the independent hotelier
When Great National first entered the market in 2009, the industry was experiencing a major economic downturn with a hotel proliferation around Ireland that felt more European than local with international brands being imposed on hotel owners by the banks and other lenders as a loan covenant.
That didn’t sit well with the independent hotelier who sees their hotel as an extension of their personality,” notes James. “Independent hoteliers like to have their personality & operational freedom. They are embedded into the community; they are of the community”.
The fundamental reason why Great National has been successful is that we understand and connect with independent hoteliers, and we do this In a very cost-effective and light contractual manner, we bring them the expertise, talent and shared passion, and we give them the ability to compete and all the benefits of a global brand all while keeping their sovereignty and remaining independently owned and managed.
“We understand and connect with independent hoteliers.”
Strategic Expertise
This expertise begins with the co-founder. James Sullivan has 30 years of business and financial experience in hotels across three continents. He’s worked with the World Tourism Organisation, national tourism authorities, hotels and resorts: as director, controller, consultant and auditor.
A graduate of UCC and having studied at the Kennedy School of Government at Harvard University USA, he has also served clients such as the World Bank, the International Finance Corporation, the European Bank of Reconstruction and Development, and the European Investment Bank.
Together with David Byrne, his co-founder and partner in Great National Hotels & Resorts, cites 22 years of experience in the hotel sector, including director of sales at Lynch Hotels Group and General Management positions.
With his background in sales and hotel management, “David has an incredible connection with independent hoteliers, he understands the importance of “quality revenue” and a strong focus on the costs related to generating superior margins and profits and he is continuously looking at opportunities on how we can bring more and better revenue to our clients. He has been instrumental in introducing new technologies for Great National clients, such as the Revanista revenue management software which assists hotels across Ireland & the UK. “I think it’s fair to say that David fully understands the challenges facing independent hotels and is relentless in shaping the value proposition of Great National to help them to grow and be more profitable”.
Always Nurture Your Direct Channels
The growth in the number of rooms being generated by the OTA’s has led to an increase in the level of commissions effectively “business acquisition costs” being paid by hotels. There is no doubt that OTA’s are a valuable rooms segment and are most valuable to hotels when they provide “incremental rooms” rather than being a core segment.
Direct channels are far more cost-effective and Great National works tirelessly on gaining direct business via phone and direct contact reservations and via the hotel’s website. “Talk of the demise of telephone bookings has been greatly exaggerated”. Reservation teams that are trained to convert and to up sell are key to securing high-quality bookings and our trained agents are all incentivised to secure the booking and up-sell.”
“To win direct business you must go up against OTA’s for this you have to be on your game, they have the best technology and big budgets. You’ve got to compete with them and be better than them in everything they do. A full rate and digital marketing strategy is needed to enable hotels to compete daily with the OTA’s. “The quest to increase direct business all while optimising the use of OTA’s for incremental room revenue is a key hotel revenue management strategy and one that we excel at”.
“A full rate and digital marketing strategy is needed to enable hotels to compete daily with the OTA’s”.
What Next For Great National
As a growing SME, we have continuously reinvested in our business in the development of our technology platform and our people. Strategically we’ve developed, our revenue management software Revanista & the acquisition of our UK subsidiary The Hotel Partnership trading as Classic British Hotels which we acquired in 2018.
“Continuous investment in our technology and people”
Rollout of GDS Supported by Strong Agency Partners & Dedicated Sales & Marketing Support Team
Our current GDS platform is proving successful for hotels in Ireland’s Midwest, near Shannon Airport & Limerick City. In the autumn of 2024, we look forward to bringing to Irish Hotels our improved global distribution platform in partnership with Sabre and key strategic agencies including American Express Global Business Travel, CWT and Calder’s, and providing access to over 500 travel managers and 600,000 travel agents worldwide.
This new and exciting service will be supported by our sales and marketing team and an in-house RFP desk. We believe that the introduction of a world-class GDS platform along with the great national ethos of combining talent with technology will help us to deliver high-quality corporate and meeting and events business to our clients. Giving clients a global reach, while they continue to be ingrained in their local communities.
“The introduction of a world-class GDS platform along with access to key global preferred agreements giving hotels a truly global reach”.
Continued Growth in the UK
In 2018 Great National acquired Classic British Hotels a UK soft brand sales and marketing company, “we saw this as being the ideal way to anchor our growth in the UK. Having now repositioned and restructured the business, it is well-positioned for further growth and expansion. We see great opportunities in the UK to not just develop the service offering of Classic British hotels but also to develop a UK market from the core services of Great National”.
“Develop a UK market from the core services of Great National ”
New Service & Membership Structure for the Irish Market
We’ve learned a great deal from our acquisition and growth in the UK and we are now looking forward to applying that learning to the Irish market.
Previously in Ireland, we’ve marketed our services as a one-stop shop. Our strategy now is to reposition the company in the market. This will enable us to provide independent hoteliers with greater flexibility with the option to engage Great National on either a service-by-service basis or a full membership basis.
Independent Hoteliers can also decide on how they wish to engage with the brand with the choice of options, from soft branding, and co-branding to staying completely independent using Great National as a white-label service and resource.
This will ensure that each hotel can select the support ideally suited to its own needs and strategy all while maintaining its independence and individuality. “This is a new and exciting development for us, and we look forward to bringing this fresh approach to the market in the coming months”.
We are continuing to develop our Revanista Revenue Management Software which is now operational in over 40 hotels across Ireland & the UK. We look forward to the continued development of this very user-friendly and powerful software which will become a brand standard for our revenue management clients and will also become available to hotels on a standalone basis.
We see the combination of our world-class Revanista software and the talent of the dedicated revenue manager provided to each of our clients as being a huge competitive advantage to the independent hotelier and being a key instrument in driving increased levels of direct business.
“Each hotel can select the support ideally suited to its own needs and strategy all while maintaining its independence and individuality”.
A Challenging Market Environment Ahead
A busy general manager of an independent hotel has little time to prepare for the future.
Great National helps hotels on a day-to-day basis and also strives to be a step ahead and anticipate challenges, (and there are plenty of them coming down the line). Over the last few years, the Irish hotel industry has gone from lock down to an explosion of pent-up demand in 2022.
We became very busy and there was a good rebound,” says James. “2023 was also a good year for the domestic market. Our rates and occupancies were strong. But it’s beginning to change now. People are seeing more traction in the market. We’re busy but there is more resistance in terms of customer perception. The customer is looking for more value and has a keen interest in offers and special deals.”
This search for value in price has led to unfavourable headlines around “hotel room rates”, particularly in Dublin city centre. James Sullivan believes elevated prices are unavoidable during periods of demand. “You are never going to get a cheap hotel room during the Six Nations,” he reasons. “During peak times, high prices prevail”.
James Sullivan thinks a decentralised approach to large events in Ireland would democratise hotel rooms and prices, citing the examples of large concerts held at Thomond Park in Limerick, Killarney, & Páirc Uí Chaoimh in Cork. “I believe some key secondary sports and entertainment events such as GAA all-Ireland semi-finals, selected football and rugby international friendlies etc. should not go to Dublin. We can see from the excitement being currently generated in the Cork area with the possibility of hosting a number of the games in the 2028 European Championships if these were to go ahead they would be a huge benefit to the local economy. I certainly think a more sustainable approach to staging even secondary events outside of Dublin would not only benefit the regions but also reduce the number of nights where room rates were perceived to be too high.
Maybe these organisations should follow the US model whereby towns bid for these kinds of events. We need to get more stuff out of Dublin because when the number of guests exceeds the number of rooms that will push up prices. We have to get the equilibrium right.”
Particularly with sports and entertainment events, we have seen an interesting trend in the UK where guests are happy to stay maybe 10 miles out of Liverpool, in places like Chester, or Bolton outside Manchester, for certain events.” This can create great opportunities for those hotels close to the event especially those with good public transport connections to benefit from events & concerts etc. which helps to take pressure off the city centre hotels while helping to offer the guests a more competitive rate.
It’s not always easy at any price point. Hotels can end up short-changed by cancellations. Nowadays customers rarely pay deposits when they book hotel rooms. The growth in the level of cancellations requires very proactive communication and management by the hotel of their cancellation policy. This is a challenge that we have worked very closely with our clients on and we ensure that “If we have a cancellation policy that is 24 or 48 hours out we have to be proactive to make sure those rooms are recycled immediately”.
A busy general manager has to have peace of mind and know someone’s looking after this. We bring that peace of mind.”
We also have to recognise the market’s terrific value in terms of leisure breaks particularly mid-week outside Dublin, particularly on the Wild Atlantic Way.”
Working With Great National
Financially, what is involved for hotels that choose Great National to manage their marketing and revenue services?
The group gears its costs around an independent hotelier’s budget, says James. Its clients (predominantly three and four-star hotels) across Ireland & the UK range from 20-room properties to hotels with over 200 rooms. “We have a value proposition for all of them”.
Our membership and service offerings are based on low fixed fees very often less than a weekly minimum wage and a commission on business delivered. Our ethos is to be commission-driven. We don’t earn unless we sell for you.” We can offer full flexibility and a La Carte menu of services with contracts from 24 months”.
“We don’t earn unless we sell for you”
Summary Key Points
Irish hotels are fine quality products, believes the CFO. “We have well-run hotels that are vested in the community and run by passionate and dedicated people. However, because of the competitive environment, we need to make sure that we’re edgy. We have to appeal to different demographics, different markets, and the next generation. Sometimes you need a trusted partner to guide you and make sure you’re making the right decisions. One of our key pillars is to collaborate with our clients. Allow us to help you in the best possible way. Work with us. Let us do the things we’re good at. Then you can have the peace of mind to develop your business. That is the key to the partnership and relationship with our hotels.”
- The essence of the services provided by great national hotels and resorts is that we provide our hotel partners with experienced and professional reservation agents, who command a detailed knowledge of
- Each property’s amenities and personality and who are focused and incentivised on closing each reservation call with the maximum amount he up selling, a dedicated revenue manager worked to consistently obtain the maximum rate for each available room every night. l expert digital marketers’ managers are focused on driving the maximum amount of direct revenue to the hotels’ websites with creative consistent and cost-effective digital marketing campaigns.
- All of whom join the internal team and work with the hotel every day. Working in tandem with the hotel team our colleagues does not least do not simply make recommendations on what they involve but they are involved in the execution of all agreed-upon actions.
- The talent that we provide includes trained and incentivised reservation agents who command a detailed knowledge of the property its personality and amenities and who are focused on closing each reservation call with the maximum amount all the mean is he up selling. Revenue managers worked to consistently obtain the maximum rate for each available room every night. The digital managers are focused on driving the maximum amount of direct revenue to the hotels’ website with creative consistent and cost-effective digital marketing campaigns.
- In 2009 when my business partner and Co-founder David Byrne invited me to join him in setting up great national hotels and resorts ambition was to establish the quiz essential Irish hotel soft brand that would enable the independent hotelier to better compete in a competitive and dynamic marketplace and to bring them the scale and benefits are they global brand without the costs long term contracts and need to comply with Brandon operating standards.
- Now more than 15 years later we work at bringing the world of revenue opportunities to our clients through the world-class handling of their reservations, revenue management, online distribution and digital marketing, together with bringing our top talent directly into their business every day. By taking responsibility for these key internal processes and activities we allow the hotel you’re and its team the time to focus on securing growth in other segments and in the pursuit of local opportunities including ground-floor conference banqueting and events with food and beverage.
- As a growing SME, we have continuously reinvested in our business in the development of our technology platform including our revenue management software Revanista. In the autumn of 2024, we are looking forward to bringing our global distribution platform in partnership with Sabre and key strategic agencies including American Express global business travel, CWT and Calder’s together with providing access to over 500 travel managers and 600,000 travel agents worldwide. This new and exciting service will be supported by our sales and marketing team and an in-house RFP desk. We believe that the introduction of a world-class GDS platform along with the great national ethos of combining talent with technology will help to deliver high-quality corporate and meeting and events business to our clients.
Financially, what is involved for hotels that choose Great National to manage their marketing and revenue services? The group gears its costs around an independent hotelier’s budget, says James. Its clients (predominantly three and four-star hotels) across Ireland & the UK ranging from 20-room properties to hotels with over 200 rooms. “We have a value proposition for all of them. There’s a low level of fixed fees: making sure your rates are managed properly across all your channels on an hour-to-hour, day-to-day basis. Our ethos is commission-driven. We don’t earn unless we sell for you.”
