Trunk Show

Saturday, Aug. 23rd 11-4

1991, a year after the company largest provider of vacation time-
was bought out by HFS, he be- share exchanges worldwide.
Three years ago, HFS brought
came president of the Howard
Days Inn to Israel. It now has
Johnson chain.
"I was very young," admits Pf- seven hotels. A branch of ERA., a
effer. "In Europe or the Middle company which recruits agents
East, they won't let you manage to buy and sell houses, has
things until you have gray hair. opened in Jerusalem and a part-
In the U.S. it's different. If you nership agreement has been
signed with Century 21. HFS
can deliver, age doesn't matter.
"I learned a lot from the Israeli also plans to bring Super 8 mo-
army. There, it's natural to learn tels to Israel.
"Israel's tourism industry has
how to take control."
During this period Pfeffer ef- really evolved in the last few
fected many important changes. years," says Pfeffer. "In the past,
For starters, HoJo needed a new Israelis were not service-orient-
image. Famous for its orange ed. It went against the grain. Par-
roofs, which are as much an ents wanted their children to be
American icon as apple pie, Pf- engineers or lawyers, not hotel
effer decided it was time to move managers or waiters. That has
away from this look. His first improved, partly because of com-
task was to create a new logo, af- petitive forces, but also because
ter which he gave the hotels the you can't have pretty hotels and
go-ahead to build without the restaurants without delivering
the product." In addition, he says,
trademark orange roofs.
In a bid to improve service, he facilities, infrastructure and des-
kicked out 37 hotels for quality tinations have all improved.
Despite the publicity accom-
shortfalls.
He also began a policy of glob- panying Howard Johnson's ar-
alization, breaking ground out- rival in Israel, the hotels are
side North America for the first opening at a bad time. Since
1996, there has been a sharp de-
time, in destinations such as
Colombia, Mexico and Dubai. cline in the number of visitors va-
Under his leadership, 40 inter- cationing in Israel, and this
national franchised properties deterioration is likely to contin-
were added to the company and ue while regional instability and
agreements for more were signed the threat of terrorism continues.
Pfeffer, however, seems rela-
with Lebanon, Jordan, Syria,
tively unconcerned. "When the
Egypt, Thailand,
Malaysia and South Africa. market is doing badly, hotels look
The company now has 500 prop- for other ways to promote their
business. They want security
erties around the world.
As part of this move, Israel blankets like franchising."
Brand names are also becom-
was a natural choice. So far, four
hotels have been franchised: the ing an important worldwide
Neptune in Eilat, the Ruth Ri- trend. "Every hotel chain has
mon Inn in Safed, the Galei Eilat come to Israel now. It's the
and the Galei Kinneret in process of globalization. Every-
Tiberias. Owned by Israel Land one wants international names."
For HoJo, the failing tourism
Development Hotels Corp.,
which is now representing industry in Israel will have an
Howard Johnson in Israel, the impact — if profits at the hotels
hotels have all been upgraded to go down, the company's profits
HoJo standards and will operate will follow suit —but it's a small
under the company's top brand clip in a large bank account.
"Everything is cyclical any-
name, Howard Johnson Plaza.
All are in the three- to five-star way," says Pfeffer. "I don't know
why business people always ex-
range.
Six more hotels will be opened pect revenues to go up. It's naive
in Israel over the coming year, and unrealistic."
For all his confidence, howev-
and Shlomo Groffman, chairman
of the Israel Land Development er, there is still an edge of un-
Hotels Corp., says the company certainty in Pfeffer's voice. Israel
plans to open another five or six may be a country with "much po-
hotels in Cyprus, Greece, Turkey tential for the American tourist,"
and the territory controlled by but politics and peace do have an
important role to play.
the Palestinian Authority.
"Without a peace accord, mar-
In April 1996, Pfeffer became
head of a new global services di- ket ups and downs will continue.
vision at HFS. His role is to over- The government wants to double
see international sales, services the number of United States vis-
and preferred vendor activities itors to 1 million by the year
2000. That's a major undertak-
for HFS Inc. Growth is his aim.
HFS owns many large fran- ing. I hope and pray peace will
chise companies, including Days succeed, not just for the tourism
Inn, Kings Inn, Super 8, Villager industry. Safety fears are a ma-
Lodge and Wingate Inn in lodg- jor obstacle."
Still, he refuses to give up. "I
ing; and Century 21, ERA and
Coldwell Banker in residential like to look at the glass half full,"
real estate. It also owns Avis Inc., he says." I'm optimistic. I hope 1
the second largest car-rental million Americans do come." ❑
company, and Resort Condo-
miniums International Inc., the Jerusalem Post 1997

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