Break Time

We regret to inform all our readers that our blog will be on a temporary hiatus. This will be the last post for 2-3 weeks at which point your regular scheduled programming will resume. 

In the interim I have included links to some great resources. I would encourage all of our readers to book mark these websites and “check in” with them every once in a while for interesting and thought provoking content. 

Again, I would like to apologize for the hiatus, but we will be back with our best content ever! We look forward to seeing you again in a couple of weeks!

Great Hospitality News Resources:

http://ehotelier.com/hospitality-news/

http://www.hospitalitynet.org/index.html

http://www.hotelnewsnow.com/

How Big Is Your Foot?

Or more specifically, how big is your carbon footprint? This question has increasingly been on the mind of not only hotel guests, but industry leaders as well. Up until this point however there has been no standardization regarding which metrics should be used when calculating a hotel property’s carbon footprint. 

Cue Cornell’s Center for Hospitality Research (CHR), specifically, Eric Ricaurte. CHR noticed a trend at various conferences/industry events regarding industry stakeholders and their interest in being able to compare the carbon footprint of various hotel properties. Mr. Ricaurte subsequently completed the framework (located here) which will be used as the foundation for standardization which will help the industry move forward.  

Hopefully with the adoption of this framework, or something like it, consumers will be able to compare one hotel to another in terms of their carbon footprint and overall sustainability. In the study, a sample group of 20 properties were used to demonstrate the framework and illustrate how it could be applied to the marketplace. 

Only time will tell if Eric Ricaurte’s work will ultimately change the overall industry and how properties are compared in the minds of consumers. However, every form of standardization, which hopes to affect an entire industry, takes time and Mr. Ricaurte has provided us with that critical first step towards this standardization.  

Redesigning The Training Process

There is a trend occurring the hotel industry, although admittedly, it is in its infancy. However, if excicuted properly this new system of employee training will bring employees up to speed with an organization quicker, make them more effective liaisons with clients and provide a means to monitor and contribute to their development, both personally and professionally. 

I am going to preface the following discussion stating that human interaction, specifically one on one training is invaluable, not only during the training process, but in the long term growth and development of an employee. This interaction can never be replaced; instead, finding ways to augment an individualized training process in order to benefit not only the employee but your overall organization is paramount. 

Using IT, specifically creating portals/websites which engage employees is the latest tool being implemented in various hotel operations around the world. Providing new employees with a comprehensive source of information which can include: how to enroll in benefit plans, online training classes/documents or property/room layout and descriptions. This information is nothing new, for years hotels have had comprehensive manuals, books and files encompassing the relevant material. 

However, with the increase in easy to use website templates and web designers, the tools to move this process online have never been more convenient. Advantages include the ability for the employee to access information from anywhere and the ability to update/add information in a much cheaper/more efficient manner.

Chuck Conine recently published an article on this very issue (located here). He notes that the cost associated with adding IT to the training process is not only justifiable, but is much less than in previous years due to the progression of technology. However, Chuck does mention that non-monetary resources, such as internal and external talent, will be required to design and implement the program. Three considerations, when designing the program are:

• Deciding which policies, mission statements and values represent the essence of what the employer wants to convey about its employee brand.

• Determining topics that should be readily available within the universe of recruitment, selection, employee on-boarding and continuing employees (this decision will certainly influence project scope but also speak to the degree to which the resulting solutions represent a comprehensive approach).

• Selecting the right “content experts” for developing and updating resources,  applications and interfaces.

In conclusion, I would encourage all readers of this blog to take a critical look at the way in which new employees are introduced and nurtured within your organization. This analysis is critical in determining if there is a better (meaning not only more efficient, but more effective) manner to develop one of your most valuable assets.

High Tech At Hitec

Hitec 2011, which took place in Houston, wrapped up two weeks ago and for those of us who didn’t have a chance to go, a summary of the event may be beneficial to bring us up to speed on the show’s developments.

Terence Ronson was on the ground and has provided his insight into the show and the developments which he found valuable and/or interesting. Terence broke the conference down into six main technologies which were featured heavily at the show, they were:

• Social Networking

• High Definition

• The Cloud

• Mobility

• Connectivity

• Security

If you look at Terence’s synopsis of the event (located here), he goes into greater depth regarding each of the points and their relevance at Hitec 2011. The commonality contained in the above six points: the internet. 

Summarized, the internet is transforming the way hoteliers interact with consumers and run their business on a day to day environment. The internet is increasingly influencing each of us and the way we accomplish various everyday tasks. Additionally, hotels and their management teams are continually trying to stay ahead of the curve and integrate this life changing force into their business.

I encourage you to you take a look at the synopsis of Hitec 2011 provided by Terence Ronson. Terence discusses, in greater depth, thehighlights and trends of Hitec 2011.  

Break Time

The focus of our blog is primarily informative, with posts being written regarding trends in the hospitality industry which you should not only be aware of, but factor into the long term strategic plan of your business. 

Today however, we are going to take a break. You see today Travel and Leisure announced their list of the top 100 hotels in the world (see here). I found a couple aspects of the list very thought provoking:

• Absent from the list is Canada! This is a little perplexing to me as our natural beauty is among the best in the world. Intuitively I would have imaged that we would have had a top-tier wilderness lodge crack the top 100. However it seems as if our industry's deliverables could use a little polishing if they wish to be considered among the best in the world. 
• Africa had an extremely strong showing capturing the top 4 spots, and 6 out of the top 10 spots.
• Four Seasons strengthens their reputation as one of the premier providers of lodging in the world by capturing 6/100 spots of the list. 
  

I know you all must be thinking, “Tell me about number one!” 

Singita Tourism Group’s property (two lodges and a tented camp) located in Tanzania had the honors of taking this year’s top spot with 98.44 points of out a possible 100. Coincidentally, Singita’s adjacent property, located in Sabi Sand Windtuin, was given the number two spot and the honor of the second best hotel in the world.  I would like to extend congratulations to Singita, it is not easy to create and maintain properties at this level and I am happy that their company is receiving recognition for their hard work. 

I would invite you all to take a look at the Singita Group’s website (located here). However, I should warn you, if you are going to view this while at the office prepare for a decrease in productivity. Your mind will slip into a dreamlike state as you imagine the possibility of vacationing at one of Singita’s beautiful properties.

Just Do It

When you read that title of this blog post, what was the first thing which popped into your mind?

Unless you have literally lived under a rock, a white “swoosh” and the brand name of Nike immediately invaded your thoughts. 

Branding works, and according to a new study conducted by Longwoods International (commissioned by the US Travel Association), this rule holds true for destination marketing. The study analyzed current destination marketing campaigns which have been instituted by the State of Michigan and the Greater Philadelphia Tourism Marketing Corporation. Summarized, the study concluded that destination marketing programs drive visitation, generate additional tax revenue and drive the creating of new jobs.

In 1993 Colorado decided, due to budgetary constraints, to abolish their marketing program. According to Longwoods, Colorado lost more than 30% of its domestic visitors (translating annually into a loss of $2 Billion USD in visitor spending). Subsequently Colorado restored their marketing initiatives and, according to the state treasury, the state now experience’s an ROI of 12x on their marketing investment. 

The return on investment of marketing campaigns is not to be over looked. Increasingly we, meaning the general public, are faced with political banter of which programs to downsize and/or all together cut. Marketing campaigns are often put ahead of “critical” programs such as healthcare, education and policing. However, according to Bill Siegel, founder and CEO of Longwoods International, “Legislators are ignoring basic economics if they slash a destination marketing program. The return on investment of destination marketing programs is significant and nearly immediate.” Their research study concludes that marking initiatives generate more tax revenue than they consume by increasing visitation, spending and as a result, taxation in local economies.

Please take a look at the article profiling the research (located here) or the actual study (located here). Often we are bombarded with statistics on the revenue consumed by programs and/or the level of a destination marketing tax but without any real world case studies to put the whole picture in perspective. I hope you find the case studies as interesting as I did, as they do provide some context to the benefits which can be realized when a region implements aggressive marking initiatives.

Expedia, Groupon And The Rush To Commoditize Your Hotel

On June 6 I published a blog post (located here) regarding the news that Groupon and Expedia have joined forces to form “Groupon Getaways with Expedia.” Now that the dust has settled, and industry analysts have had a chance to digest the information, interesting articles are appearing discussing both the pros and cons of this new service.

One such article, by Madigan Pratt (article sourced at the bottom of this post), is a fascinating look at the negatives which may reveal themselves should your hotel choose utilize this new method of distribution. The crux of Madigan’s analysis is that this new channel will turn your hotel rooms from a product which is differentiated/unique to product which resembles a commodity. Expedia/Groupon buyers are driven by price rather than the differences and supplementary services which make your business unique; as a result, hotels will be forced to compete strictly on price. 

        Madigan presents four questions which management and your sales & marketing team should critically evaluate prior to making the decision to utilize this new distribution channel. The questions Mr. Pratt proposes are:

• “Who are these Groupon buyers? What chance is there of making them loyal repeat guests – those who would visit again and pay a more reasonable rate? Or are they simply bargain hunters who will only buy at a steep discount?” 
• “How does participation in Expedia/Groupon affect your brand image? With 50 million subscribers they are bound to reach past guests and even repeat VIP guests. What will they feel about your property when they see deeper discounts being offered to strangers than they perhaps have received? Will it erode my brand?”
• “How does participating in Expedia/Groupon affect the relationship you have with other travel suppliers, like travel agents? If they are actively selling your hotel, how happy will they be when one of their clients complains they can get a room for less than they can?"
• “What happens when one of your loyal repeat guests sits by the pool next to an Expedia/Groupon buyer and they start talking about what a great value they received? Will your loyal repeat guests be pleased at how your hotel has rewarded them for their loyalty?”

These questions do a great job of presenting the negative side of a relationship with this new distribution channel. Sure, the channel will allow your property to increase your RevPar, at least in the short run, but how will this short term gain affect your business in one, two and five years?

Please check out Madigan Pratt’s full article by clicking here. He does a great job of summarizing the channel and goes into more depth than I can in a blog post.