SOURCE: Comergent Technologies, Inc.

June 20, 2005 08:00 ET

Successful Enterprise E-Commerce Implementation Leads to New Revenue Stream for Choice Hotels

Comergent E-Business System Enables Powerful B2B Exchanges

REDWOOD CITY, CA -- (MARKET WIRE) -- June 20, 2005 -- Comergent Technologies®, Inc., the leading provider of enterprise e-commerce solutions, is enabling a new line of business for Choice Hotels International, Inc.'s Partner Services group. Choice Hotels (NYSE: CHH) is one of the world's largest lodging franchisors, offering brands such as Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, Rodeway Inn, and MainStay Suites.

Choice Hotels has operated its ChoiceBuys.com enterprise e-commerce portal using the Comergent E-Business System™ since 2002. ChoiceBuys.com allows Choice Hotels' franchisees to purchase hotel goods and services more efficiently from more than 211 Choice-endorsed vendors. By aggregating buying power across its independently-owned and operated hotels, Choice helps franchisees purchase at lower prices, resulting in an average savings of 7 to 15 percent per hotel and millions of dollars across the Choice system.

Franchisees that are less technically savvy or prefer to work with a live customer service representative still benefit from the system because Choice Hotels provides them with the option of working directly with its Partner Services internal sales team to obtain product and account information and to place and manage orders.

Since 2002, nearly 1,000 hotels have participated in the program, helping Choice Hotels' Partner Services technology group organization reduce operational expenses related to consulting services by 39 percent and to transform its technical help desk into a consultative sales force. Sales from the redirected efforts of the help desk since August of 2004 have topped ten million dollars to date. Endorsed vendors have also increased sales to Choice Hotels' franchisees, lowered costs, and can now more effectively communicate discounts and promotional offers.

"Comergent has given us a one-stop shop, so franchisees no longer waste time calling, faxing, or Web surfing to compare prices and buy the items they need to operate their businesses," said Brad Pitt, senior director, Partner Services Sales & Service, Choice Hotels. "The prices are lower than if they were buying on their own. Now our vendors come to us with special offers because they know we get results."

Choice Hotels Open for New Business

With proven results among Choice Hotels' nearly 3,800 locations, the Partner Services and Emerging Businesses group decided to expand its service to other associations, chains, and multi-location businesses. The new service arm, called "Primary Source," leverages purchasing volume, vendors, people, processes, and technology that made ChoiceBuys.com so successful.

"The decision to open a new revenue channel made perfect sense for our business," said Daniel Rothfeld, senior vice president Partner Services & Emerging Business, Choice Hotels. "We had already invented the wheel. We knew how easy the Comergent technology was to deploy and administer. We were thrilled with the business benefits from ChoiceBuys.com. The opportunity was too good to pass up."

In addition to all of the benefits that ChoiceBuys.com delivers, Primary Source members can receive help with supplier sourcing and relations, technical training and support, marketing to the members of the buying network, and a wide variety of other services. Typically, Primary Source can be implemented within 90 days, including integration with buyers' and suppliers' internal systems.

"Choice Hotels is a home-run for us," said Deri McCrea, vice president of customer services for Comergent. "Our highest hope is to exceed our customers' expectations and deliver huge ROI on their implementations. Arming our customers with the tools and technology to then turn that into a new line of business, revenue stream, or cost reduction tool, that's an astounding achievement which illustrates the strength of partnership with our customers."

About Comergent

Comergent is a leading provider of enterprise e-commerce software solutions. The Comergent E-Business System automates and optimizes a corporation's selling and ordering processes, thereby increasing its revenue and profit, enhancing customer loyalty, and improving visibility into sales processes and channels. With patents pending, Comergent pioneered the concept of a single e-commerce system to address all products, customers, channels, and selling processes. The first company to bring to market truly collaborative e-commerce, Comergent was an early proponent of the service-oriented architecture. The Comergent E-Business System deploys rapidly with minimal customization and provides excellent returns on investment. Customers include industry leaders like Cisco Systems, DuPont, Gates Corporation, GE Access Distribution, InterContinental Hotels Group, J. C. Penney Company, NEC Solutions America, Nissan Motor Co., Pitney Bowes, Stanley Works, and The Toro Company. Comergent is privately held with headquarters in Redwood City, Calif. For more information, visit www.comergent.com.

Comergent and the Comergent logo are registered trademarks of Comergent Technologies, Inc. Comergent E-Business System is a trademark of Comergent Technologies, Inc. All other products or company names mentioned are used for identification purposes only, and may be trademarks of their respective owners.

Choice Hotels, Choice Hotels International, Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, Rodeway Inn and MainStay Suites are proprietary trademarks and service marks of Choice Hotels International, Inc.

Contact Information

  • Editorial Contact:

    Joanne Kisling
    Comergent Technologies, Inc.
    831-462-9378
    Email Contact