Targeting Canada's smaller communities

Small is beautiful, and that can apply to the hotel business as well. When it first came to this country, Ramada focused on Canada’s major cities. As a result, you’ll find well-established Ramada properties in Calgary, Edmonton, Vancouver, Regina, Saskatoon, Winnipeg, Toronto, Ottawa, Montreal, Québec City and Dartmouth. Over the past year, however, the company has been moving in a new direction.

"When you look closely at Canada, we’re well represented in most of the large markets," says Timothy Whitehead, vice president, Ramada Franchise Canada Inc., "but there are some big opportunities awaiting us in many smaller markets."

After all, not all business is conducted in Toronto, Montreal or Vancouver. The key, according to Whitehead, is to find out from the company’s franchisees where their feeder or secondary markets are. For example, a substantial number of business travellers staying at the Ramada in Edmonton come from Fort McMurray and Red Deer. Which means, says Whitehead, that if Ramada builds hotels in those two markets, it’s already a known commodity and much more likely to do well. Red Deer and Yorkton are feeder markets for Regina’s Ramada, and therefore present strong potential markets for Ramada’s expansion.

Some of the connections are less obvious. As there is a direct WestJet flight between Thunder Bay and Calgary, for instance, a Ramada franchise owner in Calgary suggested Thunder Bay as a good secondary market to develop. And, says Whitehead, the move from Alberta to Brandon of Maple Leaf Meats means a dramatic increase of business in this prairie city, making it an ideal target for Ramada.

Five of the seven properties that Ramada opened in Canada during 1999 were in smaller markets. These were Stony Plain, Alberta; Beauport, Quebec; 100-Mile House, BC; Quesnel, BC; and Welland, Ontario. Currently, the major gap in Ramada’s network is the Maritimes, with its one lonely flagship in Dartmouth. Chances are, however, that additional Ramadas will appear in New Brunswick and Nova Scotia over the next few years.

"After all, the hub and spoke concept that has been successfully applied by US airlines for the past two decades works equally well for hotels," comments Whitehead.

Club Ramada
Ramada’s program for its frequent guests has taken off. Since its launch in June 1999, it has acquired well over 12,000 members. Besides a quarterly newsletter, Club Ramada members earn ten points for every dollar charged to their Ramada room, including telephone calls, gift shop purchases, restaurant charges and taxes. Rewards range from earning free Ramada room nights at any property in Canada or the United States to gift certificates from well known retailers such as Eddie Bauer, Shell and The Home Depot; free car rentals with Avis; and free airline tickets and frequent flyer miles.

Enrolment in Club Ramada is free and you can enrol immediately by calling (800) 672-6232 or online at www.clubramada.com.

For comprehensive information on Ramada’s Canadian properties, check their Web Site at www.ramada.ca.

Back to top