A look at how some restaurants are cutting down.
When New York City–based burger concept 4food opened its first location in August, the media buzz it generated mostly stemmed from its innovative use of technology and social media. Plasma TV screens adorn its walls, including one that scrolls customer tweets. iPads are used to order food. And diners can save their specialized burger orders to an online database, available for anybody to order in the future—an act that credits the customer with 25 cents on later 4food visits.
But one of the most innovative features about 4food’s first unit isn’t wowing customers with its flashy technology. In fact, it’s in the basement’s washroom.
For the founders of 4food, it’s a critical component to an operation they hope to be as sustainable as possible—and a tool that might be a sign of things to come for a fast food industry that’s creating billions of pounds of waste annually.
The composting machine that 4food keeps in its basement disposes of all food and packaging waste the restaurant generates.
“It’s capable of composting up to 400 pounds of food waste and compostable packaging in a 24-hour period,” says Michael Shuman, cofounder and manager of 4food. “The amazing thing is, it runs on microorganisms, so it runs 24/7/365—we just feed it enzymes on a weekly basis.”
The product churned out by 4food’s composter, which is manufactured by a food disposal company called Orca Green, is just as interesting as the tool itself.
“It turns [waste] into drainage water,” Shuman says. “There’s no compost super sludge; this water just gets drained away.” The machine will also compost the waste from 4food’s next four or five locations as well.
4food’s solution to diverting its waste from landfills is a bright idea in an industry desperate to figure out what to do about waste. Although a composting machine like 4food’s is a capital investment not every operator can afford, some experts say just sticking to the status quo is ultimately too harmful to the environment—and to an operation’s bottom line.
Michael Oshman, president of the Green Restaurant Association (GRA), says waste in the restaurant industry has become a major issue—so major, in fact, that the GRA lists “Waste Reduction and Recycling” as one of its seven Green Restaurant Certification Standards.
“Restaurants can easily put out a few hundred thousand pounds of waste every year,” Oshman says. “And that’s one restaurant. Multiply that by almost a million, and you get a lot.”
Making the transition to a system that reduces waste sent to a landfill, however, is not one that a lot of operators feel they can make, especially in a down economy.
“Restaurants have a very tight margin and operate at a very quick pace,” says Jack Macy, commercial zero waste coordinator for San Francisco’s Department of the Environment. “There’s a perception that if it’s a lot more work, they’re not going to want to do it without really big incentives. The reality is it doesn’t have to be more work at all. … But to get people’s attention, it always helps to have incentives.”
And indeed there are incentives for restaurants to begin reducing the waste they send to landfills. The GRA, for example, awards a Green Restaurant Certification to restaurants that accumulate at least 100 points in the organization’s point system. In the “Waste Reduction and Recycling” category, restaurants are required to divert plastics, glass, aluminum, cardboard, and paper from landfills; recycle grease for biodiesel or energy purposes; and compost preconsumer food, the food that is leftover from production.
Monday, November 22, 2010
What Colin Powell Says About Leadership
Powell said that his idea of what it is to be a leader evolved as he moved through various positions in public service. Among his key points:
•Leaders exist to give followers what they need to get their job done. It is the followers who go into battle and accomplish the tasks assigned.
•The most important part of leadership is instilling trust in those you command. If you have their trust, they will follow you anywhere. “Every human endeavor has leaders and followers, and your job as a leader is to inspire,” he said.•Leadership begins with goals. When the followers know what the goals are, everyone understands the importance of their own role for the common purpose.
•People want to know that you are serving a greater purpose than just your own. “Increasingly, our people want to see leaders who are respected, leaders who are selfless,” Powell said.
•Express appreciation. Make sure that those under your command understand that you appreciate what they are doing, Powell said. While serving as secretary of state, Powell said, he let people know he appreciated their work through personal visits and thank-you cards.
•Solve problems. A leader also needs to recognize when someone is not performing well. It is a leader’s job to identify the source of the problem, and fix it. “Leadership is problem-solving, and you are expected as leaders to know what’s going on throughout your organization,” he said.
.
•Leaders exist to give followers what they need to get their job done. It is the followers who go into battle and accomplish the tasks assigned.
•The most important part of leadership is instilling trust in those you command. If you have their trust, they will follow you anywhere. “Every human endeavor has leaders and followers, and your job as a leader is to inspire,” he said.•Leadership begins with goals. When the followers know what the goals are, everyone understands the importance of their own role for the common purpose.
•People want to know that you are serving a greater purpose than just your own. “Increasingly, our people want to see leaders who are respected, leaders who are selfless,” Powell said.
•Express appreciation. Make sure that those under your command understand that you appreciate what they are doing, Powell said. While serving as secretary of state, Powell said, he let people know he appreciated their work through personal visits and thank-you cards.
•Solve problems. A leader also needs to recognize when someone is not performing well. It is a leader’s job to identify the source of the problem, and fix it. “Leadership is problem-solving, and you are expected as leaders to know what’s going on throughout your organization,” he said.
.
Monday, November 1, 2010
Growing Your Career Up | (part 1 of 2)
(Kathleen Hogan write of using SWOT factors)
Remember your eagerness at the start of your hospitality career to “make your mark”? Your enthusiasm for working in your chosen field was high along with your confidence in all the possibilities of the future. Your drive to succeed was strong. That enthusiasm, confidence and drive were and still are your internal motivators.
It is likely that you will or have already felt those high levels of enthusiasm, confidence and drive diminish with time and circumstances. There are steps you can take to reset those internal motivators and grow your career with upward mobility. The first step is recognizing your responsibility in building your career. Rather than leaving your career path to chance, take control by becoming proactive in setting its course. Take constructive action steps to rekindle those internal motivators and jump start your career.
The September 2010 issue of the Chief Learning Officer magazine had an article, Real Leadership: The Meaning Behind Motivation by Graham Jones, that addressed the need for motivating yourself inside and out with a wonderful story. The story illuminates the importance of motivational balance.
If you feel you may have lost your edge, recognize the value in continuous learning. Learning, like your career, is a life-long journey, compelling each of us to learn more, adjust our thinking, refresh our passion, and update our skill sets in order to grow, thrive and contribute value.
Make it a habit to read 1 book about people in hospitality and/or business who have become successful in the area of your choice. Do this for each of the next 6 months and note how your horizons have expanded. Use many different sources and venues (books, magazines, social media, online services, etc.) when gathering information to limit biased perspectives.
Seek out additional training opportunities to build upon or enhance your existing skill sets.
Learn new skills.
There are many hospitality industry certificates and certifications available to those who want to build upon their knowledge base, CV expertise and career experience. Which certifications should be pursued is dependent on your area of focus and career goals. Certificates are very good stepping stones at the start of your career and may be earned much faster than certifications, which often require 2 to 5 years tenure in the same position.
For example, the Educational Institutes of the AH&LA (American Hotel & Lodging Association) and the National Restaurant Association offer certifications for administrators, educators, operators and suppliers in the hospitality industry. Search and find other sources of advanced certificates and certifications as part of advancing your career. Many hospitality professionals hold more than one certification.
There are certain exercises you can do to be better prepared and keep your career on track.
•Perform a SWOT analysis annually
•Set short and long range goals
•Identify your Motivational DNA
SWOT is the acronym for Strengths, Weaknesses, Opportunities, and Threats. Performing a SWOT analysis is a standard tool used in business for measuring where a company is in relation to its business goals, competition, and future direction. The individual can effectively use the same tool in both their personal and career life.
Perform your own SWOT Analysis to establish a baseline measure of your strengths, weaknesses, opportunities and threats as of today. This exercise brings into focus areas that may need more work, require additional education, certifications or skills, and those areas of strength that may afford you an advantage to build upon.
One way to identify your strengths is through the Strengths Finder book by Tom Rath and its accompanying online test, which lists and prioritizes your strengths. Knowing your strengths may reveal more possibilities for positions not previously considered, and the type of work environment most suitable for you. This knowledge may alter the direction you take in choosing who and where to work, doing what.
When you repeat the SWOT analysis annually, a career tracking and timeline begins to appear, which helps define your accomplishments and set (or reset) the future direction of your career path. Performing a SWOT analysis lends itself to setting career goals.
Part two will provide continued action steps in setting goals and identifying motivators to advance your career.
Remember your eagerness at the start of your hospitality career to “make your mark”? Your enthusiasm for working in your chosen field was high along with your confidence in all the possibilities of the future. Your drive to succeed was strong. That enthusiasm, confidence and drive were and still are your internal motivators.
It is likely that you will or have already felt those high levels of enthusiasm, confidence and drive diminish with time and circumstances. There are steps you can take to reset those internal motivators and grow your career with upward mobility. The first step is recognizing your responsibility in building your career. Rather than leaving your career path to chance, take control by becoming proactive in setting its course. Take constructive action steps to rekindle those internal motivators and jump start your career.
The September 2010 issue of the Chief Learning Officer magazine had an article, Real Leadership: The Meaning Behind Motivation by Graham Jones, that addressed the need for motivating yourself inside and out with a wonderful story. The story illuminates the importance of motivational balance.
If you feel you may have lost your edge, recognize the value in continuous learning. Learning, like your career, is a life-long journey, compelling each of us to learn more, adjust our thinking, refresh our passion, and update our skill sets in order to grow, thrive and contribute value.
Make it a habit to read 1 book about people in hospitality and/or business who have become successful in the area of your choice. Do this for each of the next 6 months and note how your horizons have expanded. Use many different sources and venues (books, magazines, social media, online services, etc.) when gathering information to limit biased perspectives.
Seek out additional training opportunities to build upon or enhance your existing skill sets.
Learn new skills.
There are many hospitality industry certificates and certifications available to those who want to build upon their knowledge base, CV expertise and career experience. Which certifications should be pursued is dependent on your area of focus and career goals. Certificates are very good stepping stones at the start of your career and may be earned much faster than certifications, which often require 2 to 5 years tenure in the same position.
For example, the Educational Institutes of the AH&LA (American Hotel & Lodging Association) and the National Restaurant Association offer certifications for administrators, educators, operators and suppliers in the hospitality industry. Search and find other sources of advanced certificates and certifications as part of advancing your career. Many hospitality professionals hold more than one certification.
There are certain exercises you can do to be better prepared and keep your career on track.
•Perform a SWOT analysis annually
•Set short and long range goals
•Identify your Motivational DNA
SWOT is the acronym for Strengths, Weaknesses, Opportunities, and Threats. Performing a SWOT analysis is a standard tool used in business for measuring where a company is in relation to its business goals, competition, and future direction. The individual can effectively use the same tool in both their personal and career life.
Perform your own SWOT Analysis to establish a baseline measure of your strengths, weaknesses, opportunities and threats as of today. This exercise brings into focus areas that may need more work, require additional education, certifications or skills, and those areas of strength that may afford you an advantage to build upon.
One way to identify your strengths is through the Strengths Finder book by Tom Rath and its accompanying online test, which lists and prioritizes your strengths. Knowing your strengths may reveal more possibilities for positions not previously considered, and the type of work environment most suitable for you. This knowledge may alter the direction you take in choosing who and where to work, doing what.
When you repeat the SWOT analysis annually, a career tracking and timeline begins to appear, which helps define your accomplishments and set (or reset) the future direction of your career path. Performing a SWOT analysis lends itself to setting career goals.
Part two will provide continued action steps in setting goals and identifying motivators to advance your career.
A Framework for Managing Change
Endra Larkin writes about Change and adaption.
When Charles Darwin wrote ‘It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change’, he clearly wasn’t talking about the hotel industry. Yet, his words do hold relevance for hoteliers today, because there are major changes afoot in our industry which will transform the competitive landscape in the years ahead. Of course, change is nothing new in hotels – it has always been an industry where a critical success factor is the ability to evolve in response to shifting consumer and market dynamics; however, the pace of change is quickening, a trend that seems likely to continue.
As a result, all hotel leaders need to be comfortable in personally dealing with change and, more importantly, in helping their employees to cope with it; particularly with regard to those changes which are substantial in nature. For major change, applying a structured, but not rigid, approach to implementation is advisable; one which takes into account the not inconsequential human relations issues associated with any change. Unfortunately, many leaders mishandle the process and this can lead to significant resentment and conflict, much of which is avoidable if some basic principles for managing change are applied.
People and Change
In terms of coping with change, it is not an exaggeration to say that many people tend to struggle with it - to varying degrees - and as a rule, the bigger the change, the greater the likelihood they will struggle. Because of this, gaining commitment at the outset is sometimes seen as the trickiest part of the change management process – and it is undoubtedly a challenge – but sustaining change is perhaps more difficult; often, far more so than we realise.
In an article entitled, Change or Die published in Fast Company Magazine, Alan Deutschman highlighted some startling points about our collective inability to sustain change. Here are some extracts of his article which are relevant here:
. . . What if a well-informed, trusted authority figure said you had to make difficult and enduring changes in the way you think and act? If you didn't, your time would end soon -- a lot sooner than it had to. Could you change when change really mattered? When it mattered most?
Yes, you say?
Try again.
Yes?
You're probably deluding yourself.
You wouldn't change.
Don't believe it? You want odds? Here are the odds, the scientifically studied odds: nine to one. That's nine to one against you. How do you like those odds?
Where did those odds come from? In his article, Mr. Deutschman goes on to refer to a presentation given by Dr. Edward Miller, the Dean of the Medical School and CEO of the Hospital at Johns Hopkins University, which focuses on an individual’s inability to change:
. . . He [Dr Miller] turned the discussion to patients whose heart disease is so severe that they undergo bypass surgery, a traumatic and expensive procedure that can cost more than $100,000 if complications arise. About 600,000 people have bypasses every year in the United States, and 1.3 million heart patients have angioplasties -- all at a total cost of around $30 billion. The procedures temporarily relieve chest pains but rarely prevent heart attacks or prolong lives. Around half of the time, the bypass grafts clog up in a few years; the angioplasties, in a few months. The causes of this so-called restenosis are complex. It is sometimes a reaction to the trauma of the surgery itself. But many patients could avoid the return of pain and the need to repeat the surgery -- not to mention arrest the course of their disease before it kills them -- by switching to healthier lifestyles. Yet very few do. "If you look at people after coronary-artery bypass grafting two years later, 90% of them have not changed their lifestyle," Miller said. "And that's been studied over and over and over again . . . Even though they know they have a very bad disease and they know they should change their lifestyle, for whatever reason, they cannot"
If people struggle to sustain change even when life and death are at stake, this undoubtedly has implications for managing change in the workplace. And, apart from collective personal failings in terms of change, the hotel environment –customer-driven as it is – creates the ideal conditions for a particular change initiative to slide off the agenda, once the initial implementation steps have happened. No doubt you will have experienced this at some stage: for example, you will have seen cases where a big deal was made around a certain change for a while, but slowly over time, lack of follow through, or shifting focus led to few tangible outcomes being achieved in the longer term. It is fair to say that hotels can, at times, suffer from the ‘flavour-of-the-month’ syndrome.
In light of this, creating a compelling case for change and getting ‘buy-in’ from employees undoubtedly remain critical early steps in managing change; and, experience shows that the more involvement people have in determining the nature and direction of changes affecting them, the more easily they will support the implementation process. However, even when the desire to change has been harnessed, people can easily fall back into old habits, or commitment can wane over time; therefore, creating the conditions to sustain change is also a vital concern. The change process must be effectively managed beyond the early stages and leaders need to really focus on how to bed-down and sustain change, as much as they do on getting people onside from the beginning. In achieving this, the following framework can be helpful:
A Framework for Managing Change
By Enda Larkin
Following a framework such as this provides long-term focus for the change management effort; it provides a template to harness commitment from the start; helps to plan for implementation and, most important of all, emphasises the need to stick with the change. In applying a framework such as this, keep the following general points in mind about managing change:
•Change must lead to tangible benefits, if employees are expected to buy into it;
•Change must be ‘sold’ to employees; forcing change through, whilst on rare occasions unavoidable, is rarely effective;
•Change just for the sake of it winds people up and should be avoided;
•Include employees in decision making around change, where possible;
•The bigger the change, the more difficult it can be for employees, so strong leadership is essential in making the change happen;
•The implementation of change should be time bound, for dragged out change can be disheartening;
•Make sure to define and communicate clear implementation plans and that deadlines are adhered to;
•Show benefits to employees as early as possible in the change process, so people see the value of it;
•Offer lots of support and guidance to employees as they seek to work through the change;
•Recognise that change processes provide ideal opportunities for the negative team members to ‘stir things up’. Pay particular attention to the influence they are exerting at such times.
When Charles Darwin wrote ‘It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change’, he clearly wasn’t talking about the hotel industry. Yet, his words do hold relevance for hoteliers today, because there are major changes afoot in our industry which will transform the competitive landscape in the years ahead. Of course, change is nothing new in hotels – it has always been an industry where a critical success factor is the ability to evolve in response to shifting consumer and market dynamics; however, the pace of change is quickening, a trend that seems likely to continue.
As a result, all hotel leaders need to be comfortable in personally dealing with change and, more importantly, in helping their employees to cope with it; particularly with regard to those changes which are substantial in nature. For major change, applying a structured, but not rigid, approach to implementation is advisable; one which takes into account the not inconsequential human relations issues associated with any change. Unfortunately, many leaders mishandle the process and this can lead to significant resentment and conflict, much of which is avoidable if some basic principles for managing change are applied.
People and Change
In terms of coping with change, it is not an exaggeration to say that many people tend to struggle with it - to varying degrees - and as a rule, the bigger the change, the greater the likelihood they will struggle. Because of this, gaining commitment at the outset is sometimes seen as the trickiest part of the change management process – and it is undoubtedly a challenge – but sustaining change is perhaps more difficult; often, far more so than we realise.
In an article entitled, Change or Die published in Fast Company Magazine, Alan Deutschman highlighted some startling points about our collective inability to sustain change. Here are some extracts of his article which are relevant here:
. . . What if a well-informed, trusted authority figure said you had to make difficult and enduring changes in the way you think and act? If you didn't, your time would end soon -- a lot sooner than it had to. Could you change when change really mattered? When it mattered most?
Yes, you say?
Try again.
Yes?
You're probably deluding yourself.
You wouldn't change.
Don't believe it? You want odds? Here are the odds, the scientifically studied odds: nine to one. That's nine to one against you. How do you like those odds?
Where did those odds come from? In his article, Mr. Deutschman goes on to refer to a presentation given by Dr. Edward Miller, the Dean of the Medical School and CEO of the Hospital at Johns Hopkins University, which focuses on an individual’s inability to change:
. . . He [Dr Miller] turned the discussion to patients whose heart disease is so severe that they undergo bypass surgery, a traumatic and expensive procedure that can cost more than $100,000 if complications arise. About 600,000 people have bypasses every year in the United States, and 1.3 million heart patients have angioplasties -- all at a total cost of around $30 billion. The procedures temporarily relieve chest pains but rarely prevent heart attacks or prolong lives. Around half of the time, the bypass grafts clog up in a few years; the angioplasties, in a few months. The causes of this so-called restenosis are complex. It is sometimes a reaction to the trauma of the surgery itself. But many patients could avoid the return of pain and the need to repeat the surgery -- not to mention arrest the course of their disease before it kills them -- by switching to healthier lifestyles. Yet very few do. "If you look at people after coronary-artery bypass grafting two years later, 90% of them have not changed their lifestyle," Miller said. "And that's been studied over and over and over again . . . Even though they know they have a very bad disease and they know they should change their lifestyle, for whatever reason, they cannot"
If people struggle to sustain change even when life and death are at stake, this undoubtedly has implications for managing change in the workplace. And, apart from collective personal failings in terms of change, the hotel environment –customer-driven as it is – creates the ideal conditions for a particular change initiative to slide off the agenda, once the initial implementation steps have happened. No doubt you will have experienced this at some stage: for example, you will have seen cases where a big deal was made around a certain change for a while, but slowly over time, lack of follow through, or shifting focus led to few tangible outcomes being achieved in the longer term. It is fair to say that hotels can, at times, suffer from the ‘flavour-of-the-month’ syndrome.
In light of this, creating a compelling case for change and getting ‘buy-in’ from employees undoubtedly remain critical early steps in managing change; and, experience shows that the more involvement people have in determining the nature and direction of changes affecting them, the more easily they will support the implementation process. However, even when the desire to change has been harnessed, people can easily fall back into old habits, or commitment can wane over time; therefore, creating the conditions to sustain change is also a vital concern. The change process must be effectively managed beyond the early stages and leaders need to really focus on how to bed-down and sustain change, as much as they do on getting people onside from the beginning. In achieving this, the following framework can be helpful:
A Framework for Managing Change
By Enda Larkin
Following a framework such as this provides long-term focus for the change management effort; it provides a template to harness commitment from the start; helps to plan for implementation and, most important of all, emphasises the need to stick with the change. In applying a framework such as this, keep the following general points in mind about managing change:
•Change must lead to tangible benefits, if employees are expected to buy into it;
•Change must be ‘sold’ to employees; forcing change through, whilst on rare occasions unavoidable, is rarely effective;
•Change just for the sake of it winds people up and should be avoided;
•Include employees in decision making around change, where possible;
•The bigger the change, the more difficult it can be for employees, so strong leadership is essential in making the change happen;
•The implementation of change should be time bound, for dragged out change can be disheartening;
•Make sure to define and communicate clear implementation plans and that deadlines are adhered to;
•Show benefits to employees as early as possible in the change process, so people see the value of it;
•Offer lots of support and guidance to employees as they seek to work through the change;
•Recognise that change processes provide ideal opportunities for the negative team members to ‘stir things up’. Pay particular attention to the influence they are exerting at such times.
Thursday, October 28, 2010
Hotel Survival Strategies Start with Minimizing Vulnerability
“Be contrarian – leave that chocolate on the pillow,”
The bevy of hotel investors who purchased assets at the peak of the market with the intent of repositioning are now the most vulnerable in today’s economy. This “repositioning” segment of the market is in survival mode, yet creative owners are employing new survival strategies to combat challenges.
“When the bottom fell out of the hotel market in the fall of 2008, owners and lenders were abruptly faced with net income levels that plummeted by 35 to 50 percent. Their ability to rethink and execute dramatically different short-term operating strategies often became the defining element for survival,” said Amelia Lim, an executive vice president and expert hotel advisor for Jones Lang LaSalle Hotels. Jones Lang LaSalle Hotels’ Strategic Advisory & Asset Management experts have been at the forefront of guiding hotel owners in survival mode through the past several months. The firm’s market-driven analyses uncovered six points of vulnerability that struggling hotels should avoid to mitigate long-term impacts to profitability, and to maximize revenue and existing customer relations:
1.Buck the Status Quo and Maintain Marketing Resources.
Hotels have slashed sales staff, PR, marketing, often at costs that may not be apparent in the short-term. Given the prevalent thought of “If nothing’s happening in the market and cash flows are anemic, why should I spend on sales and marketing payroll?” – they’ve hit bone.
“Cutting marketing spend is an understandable and immediate reaction in a hostile environment,” said Lim “Declining demand and average daily rates (ADRs) are temporary, as our market research has conclusively shown. However, the level of guest goodwill and market perception of any hotel’s quality profile is just as temporary.”
If a hotel were to defensively scale back on its PR efforts and marketing outreach in a major way, it would be highly exposed to the risk of an opportunistic competitor gaining market share by its willingness to maintain a consistent message to the market. “The resounding message here is: don’t cut back the channel that feeds you. Keep a steady level of promotions out to the customer base, or risk losing customers,” Lim said.
2.Direct Guests to Proprietary Web Sites for Maximum Profit.
Many high-end hotels are resorting to mass-market channels to off-load inventory. “These are very expensive channels of distribution with a 25 percent fee off the top of revenue – so they end up netting 75 percent,” said Lim. “This is often seen with the independents that do not have the benefit of an affiliation with a sales and marketing group such as Leading Hotels of the World or Preferred Hotels & Resorts. Often, the more profitable way to go is to direct guests to your proprietary Web site.” The implementation of a holistic promotion strategy to channel bookings to a profitable proprietary Web site has been successfully executed at many of the hotels which Jones Lang LaSalle Hotels asset manage.
3.Release the Commitment to High ADR Rates and Introduce Variation.
Hotels need a fairly sophisticated analysis of the proper mix of ADR and occupancy to navigate today’s market. This requires market-specific experience and technical expertise. It also requires operators to sometimes relax their commitment to upholding ADRs.
“While a high ADR is a logical objective, hotels often can yield more profit by adopting a savvy strategy that embraces more modest ADR objectives at the right times,” Lim said. “Do you sell one room for $1,000, or do you sell 10 rooms for $100 each? While the RevPAR technically works out to be the same, there’s a lot more to consider in the balance. The answer lies beyond simple math, and calls for an analytic approach that combines quantitative and qualitative measures of success. The equation is further complicated when considering the incremental profits from other sources within the hotel that any one occupied room brings to the bottom line.”
4.Combat the AIG Effect with Creative Customer Solutions.
“There have been anecdotal accounts of guests requesting luxury hotel names not appear on their receipt,” said Lim. “The reported $20 bag of chips from the minibar of Le Uber Luxury Resort really sticks in the craw of public opinion when 3 percent of the company’s headcount has just been impacted by workforce reductions.”
The connotation of the hotel name and its implied positioning are points worth considering in any sales and marketing strategy. Seek ways to offset any resistance associated with extravagance given that austerity is the rallying cry of the day.
5.Explore Brand Flexibility.
Brands are allowing the delay of investment of capital dollars to help hotels ease into new standards while retaining the flag. Good mid- and long-term strategists will analyze levels of flexibility available within existing brand standards. Very often, relationships with the brands and a well-documented case on how guest satisfaction will not be materially impacted even in the absence of immediate implementation can also facilitate the phasing-in of brand standards in a manner that cushions bottom-line impact, yet preserves long-term asset value.
6.Divide and Conquer Roles: Asset Manager and Property Manager.
An asset manager should not be confused with an onsite property manager. The main value that the asset manager brings is not to dictate how to staff the property, or opine on the blueprints of the hotel’s new elevator as a property manager would, but to ensure that these plans fit in to the overall value proposition.
The asset manager is there to ensure that all the overall strategic vision is maintained and monitor operating activity at a high level. The property manager is responsible for the day-to-day and detailed execution. Understanding and allowing the division of tasks between property manager and asset manager allows the respective areas of expertise to play out in concert, with the effect of maximizing long-term asset value.
The bevy of hotel investors who purchased assets at the peak of the market with the intent of repositioning are now the most vulnerable in today’s economy. This “repositioning” segment of the market is in survival mode, yet creative owners are employing new survival strategies to combat challenges.
“When the bottom fell out of the hotel market in the fall of 2008, owners and lenders were abruptly faced with net income levels that plummeted by 35 to 50 percent. Their ability to rethink and execute dramatically different short-term operating strategies often became the defining element for survival,” said Amelia Lim, an executive vice president and expert hotel advisor for Jones Lang LaSalle Hotels. Jones Lang LaSalle Hotels’ Strategic Advisory & Asset Management experts have been at the forefront of guiding hotel owners in survival mode through the past several months. The firm’s market-driven analyses uncovered six points of vulnerability that struggling hotels should avoid to mitigate long-term impacts to profitability, and to maximize revenue and existing customer relations:
1.Buck the Status Quo and Maintain Marketing Resources.
Hotels have slashed sales staff, PR, marketing, often at costs that may not be apparent in the short-term. Given the prevalent thought of “If nothing’s happening in the market and cash flows are anemic, why should I spend on sales and marketing payroll?” – they’ve hit bone.
“Cutting marketing spend is an understandable and immediate reaction in a hostile environment,” said Lim “Declining demand and average daily rates (ADRs) are temporary, as our market research has conclusively shown. However, the level of guest goodwill and market perception of any hotel’s quality profile is just as temporary.”
If a hotel were to defensively scale back on its PR efforts and marketing outreach in a major way, it would be highly exposed to the risk of an opportunistic competitor gaining market share by its willingness to maintain a consistent message to the market. “The resounding message here is: don’t cut back the channel that feeds you. Keep a steady level of promotions out to the customer base, or risk losing customers,” Lim said.
2.Direct Guests to Proprietary Web Sites for Maximum Profit.
Many high-end hotels are resorting to mass-market channels to off-load inventory. “These are very expensive channels of distribution with a 25 percent fee off the top of revenue – so they end up netting 75 percent,” said Lim. “This is often seen with the independents that do not have the benefit of an affiliation with a sales and marketing group such as Leading Hotels of the World or Preferred Hotels & Resorts. Often, the more profitable way to go is to direct guests to your proprietary Web site.” The implementation of a holistic promotion strategy to channel bookings to a profitable proprietary Web site has been successfully executed at many of the hotels which Jones Lang LaSalle Hotels asset manage.
3.Release the Commitment to High ADR Rates and Introduce Variation.
Hotels need a fairly sophisticated analysis of the proper mix of ADR and occupancy to navigate today’s market. This requires market-specific experience and technical expertise. It also requires operators to sometimes relax their commitment to upholding ADRs.
“While a high ADR is a logical objective, hotels often can yield more profit by adopting a savvy strategy that embraces more modest ADR objectives at the right times,” Lim said. “Do you sell one room for $1,000, or do you sell 10 rooms for $100 each? While the RevPAR technically works out to be the same, there’s a lot more to consider in the balance. The answer lies beyond simple math, and calls for an analytic approach that combines quantitative and qualitative measures of success. The equation is further complicated when considering the incremental profits from other sources within the hotel that any one occupied room brings to the bottom line.”
4.Combat the AIG Effect with Creative Customer Solutions.
“There have been anecdotal accounts of guests requesting luxury hotel names not appear on their receipt,” said Lim. “The reported $20 bag of chips from the minibar of Le Uber Luxury Resort really sticks in the craw of public opinion when 3 percent of the company’s headcount has just been impacted by workforce reductions.”
The connotation of the hotel name and its implied positioning are points worth considering in any sales and marketing strategy. Seek ways to offset any resistance associated with extravagance given that austerity is the rallying cry of the day.
5.Explore Brand Flexibility.
Brands are allowing the delay of investment of capital dollars to help hotels ease into new standards while retaining the flag. Good mid- and long-term strategists will analyze levels of flexibility available within existing brand standards. Very often, relationships with the brands and a well-documented case on how guest satisfaction will not be materially impacted even in the absence of immediate implementation can also facilitate the phasing-in of brand standards in a manner that cushions bottom-line impact, yet preserves long-term asset value.
6.Divide and Conquer Roles: Asset Manager and Property Manager.
An asset manager should not be confused with an onsite property manager. The main value that the asset manager brings is not to dictate how to staff the property, or opine on the blueprints of the hotel’s new elevator as a property manager would, but to ensure that these plans fit in to the overall value proposition.
The asset manager is there to ensure that all the overall strategic vision is maintained and monitor operating activity at a high level. The property manager is responsible for the day-to-day and detailed execution. Understanding and allowing the division of tasks between property manager and asset manager allows the respective areas of expertise to play out in concert, with the effect of maximizing long-term asset value.
5 Reasons Using A Qualified Consultant Could Make a Huge Difference in Your Hospitality Business
(John is a former Instructor of my, a good friend, and has some great points..)
“CEOs who don’t use outside advice run the risk to internalizing too much. They never realize their full potential, and they miss a lot of opportunities.”
George Clement, CEO Clement Communication, Inc.
There are CEOs of many descriptions and the weak economy reinforced that fact to me in a current assignment. I am in the middle of a four city series of programs for Meetings Quest 2010 where I am leading discussions and sharing ideas on optimizing meetings success. Attendees include professional meeting planners from corporations and associations of all sizes, hotel managers and sales teams, representatives from convention and visitors’ bureaus, suppliers that serve all of the previous groups and independent professionals in the hospitality business.
When I say I am “sharing ideas” and facilitating the general session, that role does not mean I am doing all of the talking. As a career hotelier and educator, I am leading discussions on ways to optimize meeting success from various perspectives of professional meeting planners and hotels. In each of the sessions to date, there has been almost 50% of the time for the program devoted to smaller group discussions on problems facing all of these professionals in the same industry, but that have slightly different roles and responsibilities.
Those discussions have included certain elements of Stephen Covey’s Seven Habits of Highly Effective People, and #5 in particular – Seek First to Understand, and then to be Understood. The process is highly interactive and the groups are divided into smaller teams for active and inclusive discussions that involve literally everyone in the 100+ attendee audiences. Within the discussions, attendees first define the components of what may or may not be outside of their area of expertise and then defend or refine those definitions when challenged or questioned by others in the audience.
This format requires guidance and a steady pace by the moderator with invigorating results for the group. The interactive discussions among the attendees appear to create a desire for continued dialogue.
This leads me to the title of this short column – the use of qualified consultants as a means of acting as a change agent or a stimulant to progress through dialogue, thought, and discussion of alternatives and the creation of action plans.
Many of us have heard that “A consultant is someone who borrows your watch to tell you the time, and then keeps the watch.1 ” While the downside potential is clearly present when using external resources or consultants, there is also the upside of being able to address serious challenges and solve problems before they evolve into full-blown crises.
Five Reasons Using a Qualified Consultant include:
1.Making Time Count
No one can re-create “time”, but using the right resource can make a difference in how at least some time is spent. A challenge facing many hospitality businesses is answered by using another of Covey’s Seven Habits with his #7, Sharpen the Saw, that addresses the need to be able to renew one’s sense of value and awareness. When dealing with daily operations of staffing, marketing, purchasing, planning and meeting guest expectations, operators are likely aware of the problem centers and the areas where one could maximize results. The predicament often faced is that in dealing with the day-to-day business needs, one cannot and does not focus on them long enough to take action and generate results. A Qualified Consultant can tackle the time issue with a specific plan that uses time effectively and can generate results.
2.Finding True Impartiality
In most segments of the hospitality industry, it is very likely to become "People and Process” focused, due to volume and the 24 hours per day pressure of operations. Familiarity can become comfortable and we run the real risk of losing objectivity needed to assess our approaches to consider change needed to make improvements. A Qualified Consultant can bring a balance of professionalism and objectivity and share both proven best practices and their experience where and when one needs it.
3.Considering Different Perspectives and Approaches
As mentioned in the introduction, there are many different perspectives in business today and they do not need to be perceived as confrontational. A Qualified Consultant can help identify those perspectives from several angles and then offer a number of alternatives on how to proceed.
4.Understanding The Needs
Needs differ from perspectives, in that the business has certain legal, ethical and financial obligations to meet in order for the business to succeed on an ongoing basis. A Qualified Consultant is an excellent “listener” who will take the time to hear and assess you and your team's thoughts. They can use their expertise and interaction with other organizations and operating businesses to work with you in addressing your situations, be they solving people or process issues, to launching new campaigns or effectively monitoring capital improvement programs.
5.Exploring and Recommending Cost Effective Solutions
In many organizations, the answers have “always” been to add a new position, increase the advertising or lower the prices to solve a particular problem. A Qualified Consultant will likely consider those approaches as possible solutions, but will more often include a range of researched options that offer likely outcomes.
1 Advertising executive Carl Ally (1924-1999) was credited with the saying in 1965 about people who are not fond of consultants.
“CEOs who don’t use outside advice run the risk to internalizing too much. They never realize their full potential, and they miss a lot of opportunities.”
George Clement, CEO Clement Communication, Inc.
There are CEOs of many descriptions and the weak economy reinforced that fact to me in a current assignment. I am in the middle of a four city series of programs for Meetings Quest 2010 where I am leading discussions and sharing ideas on optimizing meetings success. Attendees include professional meeting planners from corporations and associations of all sizes, hotel managers and sales teams, representatives from convention and visitors’ bureaus, suppliers that serve all of the previous groups and independent professionals in the hospitality business.
When I say I am “sharing ideas” and facilitating the general session, that role does not mean I am doing all of the talking. As a career hotelier and educator, I am leading discussions on ways to optimize meeting success from various perspectives of professional meeting planners and hotels. In each of the sessions to date, there has been almost 50% of the time for the program devoted to smaller group discussions on problems facing all of these professionals in the same industry, but that have slightly different roles and responsibilities.
Those discussions have included certain elements of Stephen Covey’s Seven Habits of Highly Effective People, and #5 in particular – Seek First to Understand, and then to be Understood. The process is highly interactive and the groups are divided into smaller teams for active and inclusive discussions that involve literally everyone in the 100+ attendee audiences. Within the discussions, attendees first define the components of what may or may not be outside of their area of expertise and then defend or refine those definitions when challenged or questioned by others in the audience.
This format requires guidance and a steady pace by the moderator with invigorating results for the group. The interactive discussions among the attendees appear to create a desire for continued dialogue.
This leads me to the title of this short column – the use of qualified consultants as a means of acting as a change agent or a stimulant to progress through dialogue, thought, and discussion of alternatives and the creation of action plans.
Many of us have heard that “A consultant is someone who borrows your watch to tell you the time, and then keeps the watch.1 ” While the downside potential is clearly present when using external resources or consultants, there is also the upside of being able to address serious challenges and solve problems before they evolve into full-blown crises.
Five Reasons Using a Qualified Consultant include:
1.Making Time Count
No one can re-create “time”, but using the right resource can make a difference in how at least some time is spent. A challenge facing many hospitality businesses is answered by using another of Covey’s Seven Habits with his #7, Sharpen the Saw, that addresses the need to be able to renew one’s sense of value and awareness. When dealing with daily operations of staffing, marketing, purchasing, planning and meeting guest expectations, operators are likely aware of the problem centers and the areas where one could maximize results. The predicament often faced is that in dealing with the day-to-day business needs, one cannot and does not focus on them long enough to take action and generate results. A Qualified Consultant can tackle the time issue with a specific plan that uses time effectively and can generate results.
2.Finding True Impartiality
In most segments of the hospitality industry, it is very likely to become "People and Process” focused, due to volume and the 24 hours per day pressure of operations. Familiarity can become comfortable and we run the real risk of losing objectivity needed to assess our approaches to consider change needed to make improvements. A Qualified Consultant can bring a balance of professionalism and objectivity and share both proven best practices and their experience where and when one needs it.
3.Considering Different Perspectives and Approaches
As mentioned in the introduction, there are many different perspectives in business today and they do not need to be perceived as confrontational. A Qualified Consultant can help identify those perspectives from several angles and then offer a number of alternatives on how to proceed.
4.Understanding The Needs
Needs differ from perspectives, in that the business has certain legal, ethical and financial obligations to meet in order for the business to succeed on an ongoing basis. A Qualified Consultant is an excellent “listener” who will take the time to hear and assess you and your team's thoughts. They can use their expertise and interaction with other organizations and operating businesses to work with you in addressing your situations, be they solving people or process issues, to launching new campaigns or effectively monitoring capital improvement programs.
5.Exploring and Recommending Cost Effective Solutions
In many organizations, the answers have “always” been to add a new position, increase the advertising or lower the prices to solve a particular problem. A Qualified Consultant will likely consider those approaches as possible solutions, but will more often include a range of researched options that offer likely outcomes.
1 Advertising executive Carl Ally (1924-1999) was credited with the saying in 1965 about people who are not fond of consultants.
Tuesday, October 19, 2010
Walking after Midnight: How to Avoid Being Relocated from Your Hotel
(Daniel Carig has some valid and useful points, I used to hate walking people. You can aslo find a link to his blog on our page.)
If you’re a frequent traveler, this scenario might be all too familiar. It’s late. You stagger to the front desk of your hotel, bruised and battered by the horrors of modern travel, only to be welcomed with the words, “I’m sorry, but we don’t have a room for you.”
“What?” you cry. “But I have a confirmation … here! … It says my reservation is guaranteed!”
Silly you. Don’t you know that the credit card number you provide at time of reservation guarantees one thing only: that the hotel will charge you if you don’t show up?
As hotel occupancies climb, relocates are making a comeback. As a long-time hotelier, I have the dubious distinction of having performed scores of relocates in my career, and I know how inconvenient and frustrating it can be for travelers.
But you’re not as helpless as you might feel. While there’s no surefire way to avoid being relocated, there are ways to fight the odds – and, if your number is irrevocably up, to negotiate the most favorable terms.
What exactly is a relocate? Also known as walking or bumping, relocates occur when a hotel has more reservations than rooms. Like airlines, hotels overbook in order to maximize occupancy, banking on cancellations and no-shows, and sometimes we get caught with our pants down. Unlike airlines, however, we don’t announce overbookings to a holding lounge full of travelers or ask for volunteers. We handle relocates discreetly, swiftly dispatching you to another hotel while giving you little choice in the matter.
The early bird catches the room. Hotels typically assign rooms as guests arrive, so our options decrease as the day progresses. If we’re sold out and you arrive late, you’re vulnerable. But then you also might be upgraded, since suites are often the last to go. Not a gambler? Call the hotel in advance to say you’ll be arriving late and ask them to hold your room. And always do your homework; if a hotel is a chronic walker, you’ll read about it in online reviews.
You are what you pay. I didn’t tell you this, but the higher your rate, the more preferential your treatment. Reserve the presidential suite, and we won’t dare walk you. Book through an online travel company, which keeps up to 30% of your rate, and you’re vulnerable. Book through an opaque website, and you’re a walking target. It’s not that we don’t love you, we just love our more loyal and lucrative guests better.
Are you on the no-walk list? The truth is, sometimes we do have a room – just not for you. Depending on the hotel, certain guests never get walked, like loyalty club members, frequent guests, corporate clients, VIPs and tattooed bikers. If you don’t qualify, you can always try pleading your case; in cases of undue hardship rooms can miraculously materialize. You can also try arriving in a wedding dress or clutching a heart monitor. But if there’s no room, there’s no room.
Trade up, not down. The good news is the hotel will pay for your room that night, plus taxi fare and a long distance call. But here’s a dirty little secret: hotels prefer to relocate to a slightly inferior hotel, hoping you’ll come running back into our arms on your next visit. You have the right to insist on a comparable hotel. Hell, we’re paying, so why not ask for the Four Seasons? But if the city is full, you might well be cozying up with the farm animals at the Barnyard Inn.
You’ll never believe this, but … It’s hard to admit we had the gall to sell your room to someone else, so some employees invent little white lies like burst water pipes, electrical problems or guests who refused to check out. A truly unscrupulous hotel might try to foist the blame on you, claiming your reservation was mysteriously canceled or booked for this date five years ago. Always get an email confirmation at time of reservation, check it for accuracy, and bring it with you. If you mixed up the month and year, that’s your bad, not ours.
Now don’t get all huffy. Yes, relocating is evil, unforgiveable really, and hotels do it largely out of greed and incompetence. But it’s not a conspiracy, and we’re not singling you out for having cheap luggage or travel hair. Mostly it’s a numbers game. Chances are the long-suffering graveyard agent who relocates you had nothing to do with overbooking the hotel. So cut him some slack, be firm but pleasant, and resist the theatrics and hostage-takings. If you need to vent, save it for the general manager.
If you’re a frequent traveler, this scenario might be all too familiar. It’s late. You stagger to the front desk of your hotel, bruised and battered by the horrors of modern travel, only to be welcomed with the words, “I’m sorry, but we don’t have a room for you.”
“What?” you cry. “But I have a confirmation … here! … It says my reservation is guaranteed!”
Silly you. Don’t you know that the credit card number you provide at time of reservation guarantees one thing only: that the hotel will charge you if you don’t show up?
As hotel occupancies climb, relocates are making a comeback. As a long-time hotelier, I have the dubious distinction of having performed scores of relocates in my career, and I know how inconvenient and frustrating it can be for travelers.
But you’re not as helpless as you might feel. While there’s no surefire way to avoid being relocated, there are ways to fight the odds – and, if your number is irrevocably up, to negotiate the most favorable terms.
What exactly is a relocate? Also known as walking or bumping, relocates occur when a hotel has more reservations than rooms. Like airlines, hotels overbook in order to maximize occupancy, banking on cancellations and no-shows, and sometimes we get caught with our pants down. Unlike airlines, however, we don’t announce overbookings to a holding lounge full of travelers or ask for volunteers. We handle relocates discreetly, swiftly dispatching you to another hotel while giving you little choice in the matter.
The early bird catches the room. Hotels typically assign rooms as guests arrive, so our options decrease as the day progresses. If we’re sold out and you arrive late, you’re vulnerable. But then you also might be upgraded, since suites are often the last to go. Not a gambler? Call the hotel in advance to say you’ll be arriving late and ask them to hold your room. And always do your homework; if a hotel is a chronic walker, you’ll read about it in online reviews.
You are what you pay. I didn’t tell you this, but the higher your rate, the more preferential your treatment. Reserve the presidential suite, and we won’t dare walk you. Book through an online travel company, which keeps up to 30% of your rate, and you’re vulnerable. Book through an opaque website, and you’re a walking target. It’s not that we don’t love you, we just love our more loyal and lucrative guests better.
Are you on the no-walk list? The truth is, sometimes we do have a room – just not for you. Depending on the hotel, certain guests never get walked, like loyalty club members, frequent guests, corporate clients, VIPs and tattooed bikers. If you don’t qualify, you can always try pleading your case; in cases of undue hardship rooms can miraculously materialize. You can also try arriving in a wedding dress or clutching a heart monitor. But if there’s no room, there’s no room.
Trade up, not down. The good news is the hotel will pay for your room that night, plus taxi fare and a long distance call. But here’s a dirty little secret: hotels prefer to relocate to a slightly inferior hotel, hoping you’ll come running back into our arms on your next visit. You have the right to insist on a comparable hotel. Hell, we’re paying, so why not ask for the Four Seasons? But if the city is full, you might well be cozying up with the farm animals at the Barnyard Inn.
You’ll never believe this, but … It’s hard to admit we had the gall to sell your room to someone else, so some employees invent little white lies like burst water pipes, electrical problems or guests who refused to check out. A truly unscrupulous hotel might try to foist the blame on you, claiming your reservation was mysteriously canceled or booked for this date five years ago. Always get an email confirmation at time of reservation, check it for accuracy, and bring it with you. If you mixed up the month and year, that’s your bad, not ours.
Now don’t get all huffy. Yes, relocating is evil, unforgiveable really, and hotels do it largely out of greed and incompetence. But it’s not a conspiracy, and we’re not singling you out for having cheap luggage or travel hair. Mostly it’s a numbers game. Chances are the long-suffering graveyard agent who relocates you had nothing to do with overbooking the hotel. So cut him some slack, be firm but pleasant, and resist the theatrics and hostage-takings. If you need to vent, save it for the general manager.
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