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Bed-and-breakfasts complain of inferior ICVA support

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Local bed-and-breakfast operators squeezed by the economy claim they could be doing better if they got some support from the Indianapolis Convention and Visitors Association.

Though bed-and-breakfasts have seen revenue plummet 25 percent or more since the economy began to tank in 2008, local operators’ beef with the ICVA goes back much further.

Gary Hofmeister’s lament is representative. A dues-paying ICVA member “off and on” since he began operating the Old Northside Bed & Breakfast in 1994, Hofmeister said he finally dropped his membership because the organization did nothing to promote his business.

Old Northside B & B Gary Hofmeister, who owns Old Northside Bed & Breakfast downtown, says his ICVA membership has produced few bookings. (IBJ Photo/ Perry Eric Learned)

“In the years I was an ICVA member, I can put my finger on one reservation I’ve gotten from the ICVA,” he said.

Local bed-and-breakfast operators contend association officials systematically direct leisure travelers and convention-goers to the city’s larger hotels.

“I understand the big hotels bring in the big business, and we’re the ugly stepchild,” Hofmeister

said, “but we feel we deserve an opportunity to compete for the business.”

While the conflict between the ICVA and local bed-and-breakfast operators has been ongoing for the better part of a decade, tensions increased as the economy tanked.

The hotel industry has been rocked nationwide the last two years. Occupancy rates at hotels across the United States are down more than 20 percent and revenue per available room, a key measurement of the industry’s health, has plummeted to $44 from $55 in 2007, according to Nashville, Tenn.-based Smith Travel Research.

Hotel experts expected a slight rebound to begin this year, but the most optimistic forecasts now call for flat occupancy rates, and hotel revenue isn’t predicted to climb back to 2007 levels until 2014.

Hotel industry experts say bed-and-breakfasts have been hit harder than most.

One Indianapolis operator—Jeneane Life, owner of the Looking Glass Inn, Stone Soup Inn and The Villa—said her occupancy rate has dropped from 60 percent to 20 percent.

Diane Callahan, executive director of the Indiana Bed & Breakfast Association, said the ICVA is a particularly essential marketing arm for local bed-and-breakfasts when times are tough.

“While our offerings are unique, a bed-and-breakfast in most cases is a luxury, not a necessity,” Callahan said.

Local bed-and-breakfast operators claim the ICVA uses an in-house hotel room reservations system that tilts toward larger hotels. Making matters worse, the ICVA signed a deal this year with Expedia that raises booking commissions to levels they can’t afford and, B&B operators say, doesn’t include B&Bs in its marketing pitches and literature.

ICVA CEO Don Welsh explained that Expedia is handling leisure bookings because the ICVA was losing more than $100,000 annually handling the bookings itself.

Small consolation to the operators. The ICVA system charged local hotels an 8-percent commission plus a $4 booking fee; Expedia charges commissions of 25 percent to 30 percent with no booking fee.

“That’s a huge cut for a small business,” said Life, whose bed-and-breakfasts have 21 rooms and employ 35 people. “That’s triple what we used to pay.”

Constricted mission?

But local operators’ larger beef revolves around how the ICVA handles convention business and marketing.

Life, a 15-year ICVA member, said there’s a clear mission to fill the large convention hotels, but no such ICVA mission to do likewise for smaller operators, including bed-and-breakfasts.

Hofmeister said, “We’re an important part of the mosaic here. Bed-and-breakfast operators are some of the best tourism and hospitality ambassadors this city has.”

Welsh, who has sat down with local bed-and-breakfast operators twice in recent weeks for what he called “emotionally charged” meetings, said his organization is doing all it can to assist all area hoteliers.

“Regardless of opinions, we try to treat all of our partners in an equal manner,” said Welsh, who replaced Bob Bedell as ICVA chief in August 2008. “We pulled together our entire senior staff for two meetings with the local bed-and-breakfast operators. We’re wide open to doing what we can.”

Part of the rub, he said, is that many meeting planners prefer to deal with a few hotels that can provide large blocks of rooms.

“We can’t make decisions for meeting planners,” Welsh said. “We want to sell everyone, but in the end, meeting planners are going to do what’s best for the convention they represent. And the trend for many conventions is they want fewer hotels with more rooms.”

Life and other local bed-and-breakfast operators say that even when they sign deals with meeting planners holding events here, ICVA routes room requests to the larger hotels—hotels that happen to pay bigger dues to ICVA than the B&Bs.

“What I can tell you is, when the ICVA was involved, we simply didn’t get any reservations,” Hofmeister said.

Pay-to-play?

The ICVA has about 700 members. While most bed-and-breakfasts pay about $750 in annual dues, the larger hotels pay thousands. Local bed-and-breakfast operators claim the ICVA is merely protecting its biggest clients.

Welsh calls the assertion of the ICVA steering business away from smaller operators “categorically false.”

“The hotels that are requested by the convention and meeting planners are the ones loaded into the system without prejudice,” Welsh said.

Debbie Locklear, president and owner of locally based Meeting Services Unlimited Inc., confirmed that some meeting planners dealing with larger events are shying away from smaller hoteliers.

Locklear, whose firm represents some of the nation’s largest trade shows, including the Custom Electronic Design & Installation Association’s annual show in Atlanta and several in Indianapolis, said the ICVA has never steered her firm from any particular hotel.

“While some larger conventions want to use fewer, large hotels to consolidate things, I think there’s still a place for bed-and-breakfasts in the mix,” Locklear said. “A certain number of our clients really like them, so of course, you want to offer them.

“What it comes down to is what the convention organizer wants.”

Uncertain future

But even if convention planners request them to be a part of the mix, local bed-and-breakfast operators point out that the ICVA is the one in many cases handling the booking, which is often done out of sight of meeting planners.

“If these two groups can’t come together, everyone loses out in the long run as the city risks losing an important form of alternative lodging that a lot of business and leisure travelers seek,” said Callahan of the Bed & Breakfast Association.

Callahan noted that some regions have boosted their tourism business by making themselves a bed-and-breakfast destination. She said Indianapolis hasn’t done a particularly good job of that.

Welsh said ICVA has spent $1.5 million this year on marketing the city in an effort to bolster all its partners. The ICVA also has bolstered its website—which has seen a 70-percent increase in traffic this year—where information for all member hotels is listed, Welsh said.

In addition, he said, the ICVA has agreed to print a special brochure highlighting the city’s bed-and-breakfasts, and is waiting for local operators to submit information on their establishments so this can be done. ICVA sales staffers will distribute the brochures along with other city tourism literature.

“We need to resolve this issue, and we want to,” Welsh said. “The ball is in their court.”

Life applauds the effort, but wonders what has taken so long to get to this point. Life added that she is happy to compile information for her own properties, but thinks someone within the ICVA needs to help coordinate the effort of gathering information for all the city’s bed-and-breakfasts.

Welsh said the ICVA wants to help bed-and-breakfasts, but cautioned that his organization can’t be fully responsible for marketing their properties.

“We are fortunate to have these bed-and-breakfasts in our city, and we want them to succeed,” Welsh said. “We want to help our partners whether they have four rooms or a thousand rooms.

“But it’s important to remember, we should be supplementing the sales efforts, not be the core of those efforts.”•

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  • ICVA
    I and the Hotel I work for have been associated with the ICVA for at least 6 years and unfortunately the ICVA will always, always steer the business to the large downtown Hotels, that is their bread and butter. It is what it is. The staff is trained to bring business to downtown Indianapolis and they do not care what happens to anyone else, they only worry about the other properties when it is convenient. It is not just the bed and breakfast, but until we (meaning non downtown properties) get organized and boycott the ICVA, nothing will happen. So who is to blame? We are, we are the ones who continue to support an organization that does not support us, so we have absolutely no one else to blame, but ourselves.
  • Accepting of All Guests
    At our B&B we recently hosted a group participating in a drag queen pageant. We often have unmarried couples, singles, guests from around the world. People of all shapes, colors, races, religions and walks of life are welcome in our home. It is one of the reasons I love what I do. I now have a lovely photo of a young man dressed as a beautiful woman who was very kind and respectful. Our only request, be kind and respectful.
  • B&B's Provide what hotels don't
    Even pooling our resources (as a b&b owner) we will be unable to reach the travelers looking for us the way the ICVA can, but doesn't. I, for one am a one person operation, managing the accounting, housekeeping, marketing, cooking and lawn care. Managing a website to attempt to draw business, outside of my own site is just not practical due to man power. The fact is that when I approach the meeting planners, they instruct me that they have organized their hotel rooms through the ICVA. I did not have a chance to place a bid or offer rooms for their meeting.
    The ICVA has been my largest marketing budget, but as Don Welsh mentioned they are not set up to market for us. We have to do that ourselves. Yet the Marriott, Hilton and other large hotels are being marketed by the ICVA.
  • Nice Place
    Gary's B&B is great! Such a nice guy and I would recommend this place in a heartbeat.
  • Have Realistic Expectations
    As a practical matter, the ICVA should focus most of its efforts on larger hotels. Not to say B&Bs should be ignored, they should not. B&Bs should be highlighted as part of the larger city offerings, but they should not expect to get the same type of attention and marketing focus.

    Quite simply, most large and mid-sized conventions planners are interested in renting fairly large discounted blocks of rooms with standard amenities in a central location right next to major meeting facilities. They aren't interested in providing their convention-goers with local color or a romantic experience.

    I occasionally stay at B&B's when I travel, but I recognize they serve a different market than the one geared toward the typical conventioneer, typical business traveler, or even, to a certain extent, the typical pleasure tourist.

    It seems both the ICVA and B&B owners should work harder to forge a more collaborative marketing effort; however, people need to be realistic about their expectations.
  • More to the story
    While the ICVA could indeed do more to market the B&B's, especially to the individual travelers, it is unlikely that most convention planners would contract rooms with a B&B in Indy. Not due to any ill-will, but due to location. The Indy B&B's are terrific!! But, the convention organizer would have to run shuttle to the B&B's or rely on attendees that drive in. When signing a contract and being held financially liable, that is a big risk to the meeting planner/organization. The downtown hotels are within walking distance of the convention center and therefore are the first facilities contracted. If there was a B&B within a block or two of the convention center, I'm quite confident that it would be included in the convention hotel packages.
  • B&Bs could be better
    Like everything else, I'm sure Indianapolis has good and bad B&Bs. But I called the Old Northside a few years ago for information, and was told in no uncertain terms that unmarried couples--especially gay couples--are not welcome. Maybe they have changed their policy since, but B&Bs have a responsibility to make themselves welcoming and market themselves, too, and not rely solely on the ICVA.
    • B&B fan
      As a fan of B&Bs I always look for those when traveling almost anywhere. We found one in Washington DC through a website that markets just B&B's. What about the B&Bs here pooling resources and having their own website for bookings? Or a special tab on the ICVA website for B&Bs - separate from the hotels? Make it easy for travelers who don't want a typical hotel to find the B&B's here. I would agree that Indy does not to a good job of marketing them. I think they're a very important part of any city - they offer a more unique, personal experience.
      • Welsh & ICVA need to gett off the taxpayers teets
        Solution... take the ICVA website make sure it markets totally as a destination portal ( which has been fueled by taxpayer dollars) disbanned ICVA, hire a real PR and Advertising firm to Market INDY as a destinatin and the rank and file employees of ICVA should be merged into the CIB, except the BLOWHARD Welsh and other that create these taxpayer funded fifdoms... he can move back to Seattle with no severance... he has lined his pockets enough from the taxpayers... He is way overpaid!!
      • Shame on ICVA
        The ICVA's objectives continue to move towards becoming an extension the sales effort for the new Marriott complex. While Welsh claims all partners are treated equal, the ICVA continues to focus a large part of their time/money to selling the new 1,600 Marriott complex. More visitors does equal more tax dollars but it's about time the ICVA focus on promoting our city as a destination and less time focused on filling the pockets of the White family. It is amazing that after a substantial donation from the White family how the publically funded ICVA shifts efforts towards selling the White family hotels.

        Shame on the ICVA for ignoring our cityâ??s great bed and breakfasts. I wonder how many other ICVA "partners" feel left out?
      • Welsh & ICVA is paid for by TAXPAYERS
        Where is the FTC? ICVA is funded from Taxpayers....I find Welsh "categorically false" I do not want anymore of my tax dollars funding his pay... I will bet he gets pletny of perks from the big hotels too.. City Govt has no right to pick the winners and losers... Marion County Politics is rife with Crooks...

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