Magnusons’ online hotel reservation system has gone far, fast

Magnuson Hotels operates a reservation system for hotel owners not affiliated with a chain or franchise. Launched seven years ago in the Colbert home of Tom and Melissa Magnuson, the company has grown from a dozen properties to more than 1,400 customers. The company also has 190 Magnuson-branded properties in the United States. Last fall, headquarters was moved into a refurbished Carnegie library on East Mission Avenue. In January, an office was opened in London. The Magnusons plan to relocate there in August for at least one year.

Q.Business must be good in Britain?

A.Melissa: We’re way ahead of projections, with 34 hotels signed up. Our business model is perfect for the industry there.

Tom: Of the 60,000 hotels in Britain, 63 percent are outside London. Few have any sort of affiliation or online presence. They’re unbookable but beautiful. Some are castles. Our first recruit was The Popinjay, a small hotel in Rosebank, near Glasgow, Scotland. And with the 2012 Olympics set for London, every hotel owner dreams of being part of the show.

Q.Do you foresee a day when your business in Europe exceeds what you do in the United States?

A.Tom: The closer you look, the deeper the market gets.

Q.How will you manage your operations in Spokane from London?

A.Melissa: We are committed to keeping our core staff here. One of us will return for one week each month to stay of top of things. We have five leaders to oversee operations when we are not here.

Tom: Every person in this company was hired in Spokane. Our business model can be copied, but not our secret sauce, which is the DNA of our employees. We just did a nationwide search for a director of reservation services. The best candidate was already on our staff. He’s 22 years old.

Q.What else sets Magnuson apart?

A.Melissa: We focus on the needs of hotel guests, not the owners. We could expand more quickly – we had an opportunity to open an office in China – but we want to be thoughtful about how we grow the company. We also have the best technology.

Tom: We work well with all the online reservation systems. We are very good at getting our properties high placement on search lists.

Q.How well is the Magnuson brand doing?

A.Melissa: About 10 percent of the U.S. properties we work with have adopted our logo. In return, they get a 10 percent rebate on fees, plus marketing help, signage and brochures. There’s one in Hattiesburg, Miss., where I’m from. My cousin went by and took a picture and sent it to me.

Tom: The U.S. hotel industry is so fragmented, some owners are just more comfortable having a brand.

Q.How do you two divide responsibilities?

A.Melissa: Tom and I have always worked well together. I handle finance, public relations and advertising.

Tom: I’m responsible for our information and reservations systems, and management performance.

Q.Are you able to leave your jobs at the office?

A.Melissa: We try really hard to turn it off. We have a 13-year-old son who keeps us grounded.

Tom: Frankie is our chief strategic officer. How long we stay in London will depend in part on his feedback.