By David F. Carr  |  Posted 2005-05-23 Email Print this article Print

Choice Hotels has made a tidy profit selling supplies to its franchisees. The next step: extending the b-to-b site to the outside world.

Choice Hotels International Base Case">

Choice Hotels International Base Case Headquarters: 10750 Columbia Pike, Silver Spring, MD 20901 Phone: (301) 754-3946
Business: Licensor of hotel franchises, under brands such as Comfort Inn, Quality, Clarion and Sleep Inn.
Chief Information Officer: Gary Thomson
Financials in 2004: Revenue of $428.8 million; profit of $74.3 million.
Challenge: Convince hotel franchise owners to purchase more of their supplies through a procurement portal, ChoiceBuys.com, operated by the parent company. Improve the usability of the procurement portal to make it more attractive to franchisees that are free to make independent purchasing decisions.

Baseline Goals

  • Grow the number of participating buyers in ChoiceBuys.com by 30%, from 1,003 at end of 2004.
  • Increase the number of buyers who make more than 10 purchases per year through the system to 30% of its users, from 14% in 2004.
  • Maintain the growth of the Partner Services Division, which increased its revenue from $6.4 million in 1998, the year before ChoiceBuys.com was introduced, to about $14 million in 2004 (excluding the effect of a one-time revenue sharing arrangement).

David F. Carr David F. Carr is the Technology Editor for Baseline Magazine, a Ziff Davis publication focused on information technology and its management, with an emphasis on measurable, bottom-line results. He wrote two of Baseline's cover stories focused on the role of technology in disaster recovery, one focused on the response to the tsunami in Indonesia and another on the City of New Orleans after Hurricane Katrina.David has been the author or co-author of many Baseline Case Dissections on corporate technology successes and failures (such as the role of Kmart's inept supply chain implementation in its decline versus Wal-Mart or the successful use of technology to create new market opportunities for office furniture maker Herman Miller). He has also written about the FAA's halting attempts to modernize air traffic control, and in 2003 he traveled to Sierra Leone and Liberia to report on the role of technology in United Nations peacekeeping.David joined Baseline prior to the launch of the magazine in 2001 and helped define popular elements of the magazine such as Gotcha!, which offers cautionary tales about technology pitfalls and how to avoid them.

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