Keys To Success | "It's the Size of Your Idea, Not the Size of Your Budget"

(I took some hotel classes under John at MSU.)

Each year, I focus on creating new and updated learning experiences, whether it is in my columns, an academic or business classroom setting, an online seminar or a consulting assignment. The title of this column also represents a new 2010 workshop as well, and it addresses a fundamental approach to achieving success.


I have discovered in my career that too many people often create hotel-operating budgets to spend the amount of money available. Rather than focusing attention on ways to accomplish the desired outcome or goal, they create a document and a plan they hope or expect will win the approval of the owner or Management Company.

Best Practices for Responding to Online Hotel Reviews, Part I | By Daniel Edward Craig

Best Practices for Responding to Online Hotel Reviews, Part I

By Daniel Edward Craig
 
(Daniel has a great Blog)
 
As a hotel manager, when a guest comes to the front desk to register a complaint, do you: 1) look busy; 2) skulk out the back door; or 3) handle the matter personally?


Not that difficult a question, is it? Then why do only 4% of negative reviews on TripAdvisor get a response? Does the fact that reviews are often anonymous and directed at travelers rather than hotels let us off the hook? Or are hoteliers even paying attention? Consumers certainly are. Reviews are playing an increasingly important role in booking decisions. Some would say that online reviews deserve even more time than internal surveys, as the feedback is just as (if not more) valuable, and the impact is public.

According to TripAdvisor, a property’s response to criticism can have more influence on traveler decisions than the criticism itself. Hoteliers have a chance to redeem themselves, yet the vast majority chooses to remain silent, willfully allowing reputation and business to suffer. Granted, not all review sites allow hotel responses. Online travel agencies posted three times as many hotel reviews than traveler review sites last year, yet whereas Expedia and Hotels.com allow responses, Priceline and Travelocity don’t, effectively shutting hotels out of the conversation.

Cornell Hospitality Reports Aimed at Building Hotel Revenues Earn Top Awards for Industry Relevance

Two reports have been named the winners of the 2010 Industry Relevance Award from Cornell's Center for Hospitality Research (CHR). The award is given to two reports issued in the prior three years, as chosen by members of the CHR Advisory Board and registered users of the CHR web site. The two winners both focused on the hotel industry's challenges in maintaining revenue flow during the recent recession, particularly in terms of the detrimental effects of discounting.


The two winners are "Competitive Hotel Pricing in Uncertain Times," by Cathy A. Enz, Linda Canina, and Mark Lomanno, and "Hotel Revenue Management in an Economic Downturn: Results from an International Study," by Sheryl E. Kimes. These and all other CHR reports, tools, and other publications are available for download at no charge, at www.hotelschool.cornell.edu/research/chr/pubs/.

Current State of the Hospitality Workplace: Addressing Mistrust of Senior Management, Direct Supervisors

Throughout the Great Recession, companies have laid off thousands, cut workers’ salaries, and eliminated bonuses, leaving employees to wonder – what next? Some might speculate people still standing after workforce layoffs should be grateful and happy to simply have a job. But for those of us who have lived through it, we know this may not always be the case.


Maritz Research recently conducted its annual study on workplace attitudes within the hospitality industry, surveying 1,000 full-time employees on a wide variety of workplace issues. Consistent with other published studies on employee engagement, Maritz found that employee engagement is at an all-time low in a wide variety of areas. One major contributor to the decline in morale is the fact that one-third (31 percent) of respondents work for companies that have experienced significant workforce reductions in the past six months. This, along with other findings, paints a dire picture of what Hospitality companies face – lack of trust, threats of unionization, and poor customer service. So much for being grateful.

A major casualty of the past decade has been workplace trust. This includes mistrust of senior leaders, direct supervisors, and even co-workers. Maritz began observing this decline of trust in the early part of the decade, following the headlined corporate scandals that plagued companies like Enron, WorldCom, and Tyco. Employees became extremely skeptical of their leaders. In the past year, there has been a constant flow of stories of leaders continuing to draw high salaries, with lower level employees losing their jobs, or at least taking significant pay cuts. Currently, only 12 percent of those employed in the hospitality sector consider their company’s leaders to be completely ethical and honest. This is consistent with other business sectors that report similar percentages. Fewer than one-in-ten (nine percent) trust their management to make the right decisions in times of uncertainty, with nearly three times as many disagreeing. Only seven percent of hospitality employees ‘completely trust their employers to look out for their best interests’ and believe their senior leaders actions are ‘completely consistent’ with their words. More than five times as many hospitality employees actively disagree with those statements.

8 things to look for when searching for a Hotel GM

The general manager is the “CEO” of your multi-million dollar asset. What they do and how they lead determines the success and profitability of your property. The following is a list of eight proven skills you should look for when you are trying to bring on a new leader or to measure the one you have in place.

Hotel Restaurant Solutions - Turning a Headache into an Opportunity

CHIPP by HVS Executive Search highlights critical issues to consider when outsourcing a hotel’s restaurant operations to a professional restaurant brand/operator. In this unprecedented economy where hotel occupancy and rates are significantly down, hotel owner/operators are forced to closely review EVERY aspect of their operation to squeeze out profitability opportunities. If approached correctly, an area of great opportunity can be that of outsourcing property restaurant operations to a professional restaurant brand/operator.


Currently there are over 50,000 hotel properties operating in the United States, most of which offer restaurant options to their guests. While most of these are profitable at a departmental level, when all of the hotel’s restaurant expenses are properly accounted for, a vast majority of venues are unprofitable. In addition, most lodging owners/operators consider the running of their hotel restaurant to be a necessary evil, as the operational and managerial demands far outweigh the related revenue streams. However, when done correctly, an effective hotel restaurant will generate greater restaurant sales and profitability, enhance REVPAR and increase asset value. The key is to retain the benefits of the restaurant operations, while outsourcing the headaches.

When evaluating a partnership with a restaurant brand/operator, the hotel owner must consider three key elements: deal structure, operational considerations and restaurant brand/operator selection. This article addresses these basic issues that influence both hotel owners and restaurant brands.

Comparative Capitalization Rate Study

A review of the differentials in capitalization rates based on location and property type over a ten year period. If HVS maintained an “FAQ” list, “Where are cap rates today?” would be at the top of the list, followed closely by “What is the right cap rate for this hotel?” Not only is there no good answer to these questions, the correct response is actually a series of other questions, starting with “What net income are you capping?” and “How is that net income expected to change in the future?” and continuing on from there