ZIFFPAGE TITLEBy David F. Carr | Posted 2005-05-23 Email 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.
- 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).