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David Kong, Best Western president and CEO, on the boom in business Best Western is seeing this holiday season, with travelers staying for longer stre...
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Up 23%.
That despite a memorable point 3% increase in room rates going to announce a president and CEO of best western David -- David -- Up first of all congratulations seems like things it's starting to turn up a little bit.
What what what do you attribute this to because.
Lotta people still feel like the economy is in a Malays and it's been a for the last three years.
Well I think you're right -- economy -- still soften people are still worried.
But there's a lot of pent up demand especially on the business travel side and I think the corporation's.
Realize that business is done face to face and people like the business people they like so.
Being on the road and being able -- client is important and on the leisure side is also -- immense amount of pent up demand.
You know Americans tend to be optimistic and we we think travel is a right and so therefore on.
You know at a special and it's holidays people people get on the road to travel.
But having said that -- are you -- that you have any pricing power or.
Are you guys sort of getting us now with low prices to accommodate the still battered their consumer.
Yeah up the pricing power is slowly starting to return obviously would entries in occupancy and and that both ended mad.
It gives us a little bit up leveraged entry five increased by assisted the relative surprises have come down dramatically.
It's it's come down by more than 10% over the last few years so it's about time that we rebound from there.
Coming up by the way when you said -- a right to a vacation I'm thinking that another entitled employees.
-- The hottest markets right now that you're seeing out there.
The markets it would -- press previously Hawaii is very very strong -- up by twenty some percent.
Phoenix Arizona was down by a double digits all spring -- -- most -- -- -- -- nation's most of the major cable in locations.
Are seeing strong Korea.
Let's talk about some of the metrics that you as a CEO of a company and travel obviously you know because you're -- business and consumers.
Is that particular metrics that you know -- a signal that consumers may get back out there some people talk about the job market some people talk about the housing market what is it that you're specifically keeping your fingers crossed about.
Well it's interest thing I had done major statistical analysis on the leading indicators for our industry and I found that the stock markets it's actually the most reliable leading indicator leads by about three months so.
When you have a strong -- market is they put -- good.
Growth in our industry.
While that is fantastic -- you know what that a lot of people wouldn't figure that out but.
Maybe Ben Bernanke might be smiling somewhere because apparently the strategy is the market up -- -- -- you just mentioned.
Before I let you know we gotta talk about Iraq coming our troops are coming home.
You're opening two hotels and that's is that -- -- -- as it sounds tremendous but it sounds dangerous to.
Now we're very excited -- gonna have to best lessons from there hotels -- Iraq and sought order and the reason that that we had about a -- there is if you look at development what you wanna find markets where it.
Very strong growth in demand but very limited supply and southern Iraq that's -- case.
Bobo and particular is the fourth largest city in bracken Evans -- and Kyrgyzstan.
That -- seeing seeing a booming real estate market with huge influx of foreign capital that's close a -- on gas industry.
And from a leisure side you know that's -- very sonics that it would Lhasa city.
So there's a fair -- on demand for that city and not allow supply.
And as -- -- speaking we had some of the renderings up and I gotta tell you look very very impressive congratulations David combats western president CEO great -- we appreciate your time today.
