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7 November 2007

Magnuson introduces the Googlization of Hotel Franchising

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Spokane, WA-Every couple of decades major industry transformations occur. In the 1980s IBM ruled the world with the age of computers. Then a young Bill Gates foresaw that the new world engine was actually software. Quickly but invisibly, Microsoft displaced IBM as the titan of commerce.

In the years that followed, Microsoft’s operating system became a global monopoly. Who could ever unseat Microsoft? Not the EU, not the US Government.

And then along comes Google, and the life cycle progressed further from the era of computers to software, to the Internet. No longer were consumers locked into one operating system with little choice.

Google developed free email, word processing, spreadsheets and office applications with a unique approach. Google and its applications were easy to use, and they were free.

Why buy expensive software that requires licensing and upgrades when you could get it for free? That knocking sound at the door? The beginning of the end of the monopoly.

For decades, hotel owners needing access to brand marketing, travel agents and worldwide reservation systems have had to go through high priced hotel chains like Best Western, Holiday Inn, and Ramada. Combined brand and royalty fees often average 15% of gross; not unlike having a 1/3 partner who shelves all the debt to the property owner. The list gets longer and more expensive with membership fees, special assessments, long term contracts, liquidated damages, required hotel renovations.

Enter Magnuson Hotels’ 3 new Payback Brands and the Googlization of Hotel Franchising.
No brand fees, no marketing fees, no major requirements, just an elective set of choices for the owner to make, with a cash brand rebate paid to the hotel as a volume discount based upon Magnuson Hotels’ documented reservation contribution. www.magnusonhotels.com/IncreaseOccupancy.aspx

Judging by the attitudes of hotel franchisees, hotel franchising may have entered the beginning of the one way slide. AAHOA, which represents 50% of the US Lodging supply, has fought valiantly for franchisee rights, with its 12 points of fair franchising initiatives. The overall relationship between franchisors and franchisees was recently described by one industry statesman at a Phoenix Brand CEO summit. ”You hold the vegetables, I’ll cut them.”

Will hotel owners like complete brand power with no brand fees? Will Magnuson Hotels’ payback brands succeed? Fed up with the demands of their record label, British rock superstars Radiohead just released their new album direct to fans online, letting them name their own price. The result? 1.2 Million copies the first day.

Freedom from the dominance of one system that is expensive, one-sided and indifferent to customer needs? Give people what they want at a fair price?

If it’s happened before, it just could happen again. Will somebody get the door?

About Magnuson Hotels | In only four years, Magnuson Hotels headquartered in Spokane, WA, has become the world’s largest independent hotel group and the 17th largest worldwide hotel company overall. Magnuson Hotels’ current combined affiliate base represents aggregate assets in excess of $3.5 billion. Since 2003, Magnuson Hotels has added more affiliate hotels with its low cost franchise alternative than 8 out of the top 10 branded hotel chains combined including Best Western, Days Inn, Super 8 and Ramada.

CONTACT

Thomas R. Magnuson
Magnuson Hotels
Phone: 509-747-8713
Email: tom@magnusonhotels.com

ORGANIZATION

Hospitality NetMagnuson Hotels
http://www.MagnusonHotels.com
605 E. Holland, Suite 206
USA - Spokane, WA 99218
Tollfree: 1-877-747-8713
Phone: 509.747.8713
Fax: 509.744.0364
Email: info@MagnusonHotels.com

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