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Thursday, July 29, 2010

A Hotel Executive on How to Get Good Service

Paul James, global brand leader at St. Regis Hotels and Resorts, estimates that he spends no less than 150 nights a year in hotel rooms. His experience goes well beyond his own company's brand; he often checks out the competition by staying at other hotels.


Over time, Mr. James has developed a number of tricks to make sure his hotel stays are comfortable. For instance, after booking a room online, he immediately follows up with a phone call to the hotel's concierge. His aim: to request a room that will suit him.


"Unless you're at an airport hotel, you'll find that there are a vast number of shapes and designs of rooms within the raft of standard or deluxe rooms," he says. Sometimes he wants to ensure there's a large work table; occasionally, he wants extra room with a crib for his son. And because he's over six feet tall, he always makes sure to ask for a king-sized bed.


."It never hurts to ask" if you have a special need in mind while checking in, whether it's a specific view, a larger sofa, a mini refrigerator (not all hotels provide them), or a room on the executive floor—"even if it's just a bowl of fruit," Mr. James says. "It's surprising how much a hotel generally can do and can provide for you once you get there," he says.


One key to getting what you want is making a convincing argument for it. "It's those people who tend to have a good reason who get what they want—whether it's getting a larger room because you're going to be meeting some people in your room or you're celebrating a birthday or an anniversary," he says.



When Mr. James is checking into a hotel, he always makes sure he's nicely dressed. Typically he'll show up in a suit or slacks and a jacket. "If you look the part, you'll tend to get looked after a little bit better," he says. But he notes that some guests can look like they "just walked off the tennis court" and still get five-star treatment if they "talk and communicate" well. It helps if a guest "engages with the person that they're talking to as a human being, being pleasant and engaging and not overly demanding or difficult or obtuse or overly distracted," he explains.


He doesn't usually request an upgrade unless something is very wrong with the room, noting that members of good loyalty programs can get regular upgrades without having to ask.


Throughout his stay, Mr. James goes out of his way to be nice to the concierge. "That's rule No. 1," he says, noting that he'll often stop at the concierge desk to thank the staff after a recommendation has paid off.


Such positive reinforcement typically results in the concierge staff offering better service and sightseeing advice over the course of a trip, he says. "If you reward them with a, 'That was great—more like that, please,' it could help open up a whole raft of new access points to the city," he says. Your feedback will also give them more clues to what you're looking for.


If the concierge has performed a significant task for you, it's nice to tip him or her that day, he says, but tipping at the end of the stay is perfectly acceptable, too.


When Mr. James is staying in a U.S. hotel, he generally tips the concierge $10 to $20 a day, depending on how much he has used the service. Bellhops who carry his luggage get $2 to $5, and he always leaves $2 to $4 a day in an envelope for housekeeping.


Mr. James leaves the total tip for housekeeping in the room just before he checks out, rather than leaving it out as a daily amount. At the end, he says, "you just have a better idea of how you've been looked after."

Keys to Success Hospitality Tip: Focus on engaging the “high-touch” side of our business by instilling passion in our people #1

(I studied under John at MSU. He was a great instructor.



How often have we heard the expression that “Life is a journey.”?



Global authors and writers have noted that that travel is one of humankind’s most enduring symbols of freedom and ability to enjoy life. The concept of travel is inbred into the human experience, and we as hoteliers need to be proactive in how we deliver that experience to each one of our guests.


In these times of continuing uncertainty in the cycles of the slow rebuilding of global economies, oil spills, seemingly illogical stock market responses to speculative stories and more, we as hoteliers and the travel industry need to maintain the uniqueness of our services, regardless of our style or location of hotel.


Travel and tourism is the number one industry of many countries of the world and considered the largest service sector export for the United States. It is one of the largest employers, developing workers at all levels and areas of expertise. We have all heard the statistics on the millions of jobs, the billions in payroll income and the substantial contributions to governments everywhere as communities of all sizes benefit as well with significant tax revenues for federal, state, and local governments. Today’s every day reality is one that interacts with so many people, always seemingly in a hurry to get somewhere else. Time becomes even more precious, yet we run the risk of becoming a commodity or every day common product if care is not exercised.


I became fascinated with the hospitality industry at the age of 15 at what was then a tired Vermont resort, but the appeal of the industry was magnetic because of the very special personal interaction between guest and host (innkeeper, general manager, owner or whatever the title). Even though the hotel was “a bit worn” and travel trends were changing, there remained an excitement about actually providing a unique experience.


This is the initial article in a series that will focus in short segments about how to deliver that experience today, whether you are an independent hotel or brand affiliated. One of the clients I served was interested in this topic and for those programs I reached out for some additional insight to someone I knew from the 17 years I proudly spent as a Tennessee hotelier. Johnny Walker of Nashville has been involved in the hospitality industry his entire career. Johnny Walker Tours is probably Nashville's most experienced tour operator, dealing with various riverboat and music festival packages, guide services, reunions, group business and much more. He also has a number of hotels and brands and served at one time as the CHOICE Hotel Owners Council President. Johnny and I are long time associates in the years we overlapped, as we served together on a number of industry councils, commissions and hotel association boards. When asked, Johnny shared three goals with me that he felt were important for the program I was preparing:



1.the message that “every room rental/stay must be viewed as an experience”

2.to explore practical ways to motivate the staff that delivers hotel services

3.we must all recognize that while we are in an electronic age at the ownership and management level, the front line staff delivering the services may not be or the guests may prefer the personal touch


The program content evolved into four objectives:


1.To understand and define the Experience Economy

2.To encourage hotel general managers and their staffs to think about the “guest experience" and how it needs to be built into the mindset of every hotel associate for every guest.

3.To recognize the danger of becoming a “Commodity”, and ways to avoid becoming ordinary

4.To provide attendees with the opportunity to interact with each other on ways to immediately address challenges at their hotels.


The program featured attendees sharing specific examples of products that are commonplace today that avoided becoming commodities and contrasting them with others that have fallen into disfavor because of a lack of delivery of quality experience.


These attendee-inspired sessions moved quickly into the hospitality/lodging world and identified the “guest experience” of today’s guest in three areas:

1.breakfast

2.sleeping and

3.staff responsiveness

Discussion on clear differences between products and services were held and recognition of what we are really trying to do was the outcome. In the next blog, I will share specific examples and insights on how we might engage our associates on the “high touch “ side of hospitality.


Blog of Dr. John Hogan CHE CHA MHS 7.29.10 www.HospitalityEducators.com, www.HoganHospitality.com

Tuesday, July 27, 2010

AH&LA Lodging Industry Profile Charts Hotel Profits, Sales, International Arrivals

Industry’s Six-Year Profitability Streak Comes to an End




For 2009, the U.S. lodging industry posted pre-tax profits of $16 billion – down from $25.8 billion in 2008 – and $127.2 billion in sales – down from $140.6 billion in 2008, according to the American Hotel & Lodging Association (AH&LA) Lodging Industry Profile (LIP), an annual statistical analysis of the industry. This $127.2 billion contributed to an overall $704 billion in tourism sales*, with resident and international travelers’ expenditures in the U.S. estimated at $1.9 billion/day; $80 million/hour; $1.3 million/minute; and $22,300/second.


The percentage of international travelers to the U.S. decreased from a record 58 million in 2008, to 54.9 in 2009; arrivals from overseas travelers declined 6 percent to total 23.8 million. The top 10 countries in terms of U.S. arrivals for 2009 were Canada (18 million), Mexico (13.2 million) the United Kingdom (3.9 million), Japan (2.9 million), Germany (1.7 million), France (1.2 million), Brazil (893,000), Italy (753,000) South Korea (744,000), and Australia (724,000). These 10 countries accounted for 80 percent of U.S. international visitors.
“With the softening of the economy in Q4 of 2008 and into 2009, our industry saw an end to our six-year streak of increased profitability,” said AH&LA President/CEO Joe McInerney. “The industry suffered a one-two punch between the fallout from the 2007credit crisis and the Lehman Bros collapse in September 2008, with financing for hotel construction and renovation going by the wayside. After two years of streamlining budgets, cutting staffs, and revising service protocols, the industry is lean and ready for recovery and 2010 is being billed a transition year.”
Other facts found in the LIP:

•A detailed breakdown of the 50,800 U.S. hotels by room number, size, location, and nightly rate;

•The travel and tourism industry pays $186 billion in travel-related wages and salaries and employs 1.7 million hotel property workers;
•Profiles of the typical lodging consumer’s leisure stay (60 percent of all travelers’ stays; categorized by two adults ages 35-54, who spend an average of one night paying a rate of $105) vs. a typical business travelers stay (40 percent of all travelers’ stays; most likely to be spent by a sole male age 35-54, for three or more nights at a rate of $123).

AH&LA’s LIP provides a comprehensive, easy-to-read list of these and other significant facts about the lodging, travel, and tourism industries, including employment impact; international travel statistics; and property and room breakdowns by location, rate, and size. The complete 2010 AH&LA Lodging Industry Profile is available on AH&LA’s Information Center Webpage.

Information contained in the LIP is based on 2009 data provided by D.K. Shifflet & Associates, Ltd.; STR; U.S. Travel Association; U.S. Department of Commerce, International Trade Administration, Office of Travel and Tourism Industries, Bureau of Economic Analysis; and Statistics Canada. Figures for year-end 2010 will be available in fall 2011.

Monday, July 26, 2010

In Search of Service - The Rule of 10 & 5

People are always trying to overcomplicate service, and the end result is often that staff are so confused about the 10 or more “minimum standards” that they are supposed to be using at every guest interaction that their service seems rehearsed.



For example, I used to love it when an employee responded to a guest inquiry with an “it’s my pleasure.” And I could be wrong, but I believe that Ritz Carlton were the first to use it as a standard response for their team members.


Now, everyone is saying it, at most every Hotel company, so you have to ask yourself, is it really their pleasure? Of course not, and as a result of its over-use, it no longer has much of an impact on me at all, except when I can tell it is voiced by someone who truly embodies the service culture that we all strive to create.


I would like to see more companies focus on the basics, first, and do them well, CONSISTENTLY.


Take the 10 and 5 rule, remember that one?


When a guest comes within ten feet (10) of a team member(s), the team member(s) should cease their conversation to acknowledge the approaching guest by making eye contact. At approximately five (5) feet team members should acknowledge the guest(s) with a warm greeting, whenever appropriate.


When is the last time a Hotel company spent any time on this during their new team members’ orientation?


I don’t know about you, but at the end of the day, I still want to feel welcome when I stay at a Hotel, and valued as a customer, not looked down upon by staff members who appear disgruntled by the fact that you have interrupted their discussion of what they did on their days off, to ask for their assistance or directions.


A Hotel is supposed to be a home away from home, an oasis, in the middle of the concrete jungle.


In my home, I make people feel welcome, I acknowledge them when they enter a room, I approach them, rather than waiting to be approached, I use their name, and I let them know that I appreciate them coming to visit.

Isn’t that what it’s all about?

Isn’t that what makes people want to come back, again and again?

Nobody sits around their dining room table talking about how much they want to go back and visit their surly Uncle Frank.

It’s all about the basics, do those well, and then you can dazzle me with all of your other special attributes designed to make me want to stay at your Hotel, but if I don’t feel welcome, I won’t be back.

Up-selling at the Front Desk

Since we upsell in Restaurants and have our staff implement it, , Why not our Front Desk Staff..




With the increasingly dominant role of technology, methods for making travel plans have changed dramatically over the past decade.


(with contributions from Eydie Shapiro and Barbara Fischhof)

With the increasingly dominant role of technology, methods for making travel plans have changed dramatically over the past decade. It is now possible to book a flight, rent a car and reserve a hotel room -- all while sitting in a movie theater or even in a car wash. This means that the first person-to-person interaction guests may experience with a hotel, is probably with the front desk agent. While it is common practice for hotels to sell and oversell the Best Available Rate (BAR) online to book more reservations, up-selling is more likely in the hands of the front desk agent today, rather than the reservations agent as in years gone by.



Now, with the front desk positioned to assist in creating more revenue, the following are suggestions on how to motivate your staff to up-sell:



•Create opportunities for the front desk to sell upgrades. This can create more revenue for the property and more avenues for guest satisfaction. Upgrades include rooms with views, different bed types, square footage, added meeting space, and access to VIP Lounge areas.


•Achieve higher ADR. A property can potentially profit more from a lower occupancy with a higher Average Daily Rate (ADR) because of the reduced amount in labor and hotel resources used. For example, if a property has an occupancy of 85%, only 85% of the rooms have to be cleaned, only 85% will use electricity and water, and only 85% will need assistance from front of the house. If a large amount of upgrades were sold to that 85%, it could potentially generate the equivalent rooms revenue as a sold-out property at BAR.


•Consider a commission program for front desk staff. The front desk staff can have a major impact on the revenue that a property generates so it is important to motivate them to work toward raising the ADR. It is not uncommon for a front desk agent to think “Sure, I’m making money for the hotel, but what’s in it for me?” A commission program is becoming more common practice among hotels to create incentive for the front desk. For example, a 5% commission paid to the desk agent for every upgrade sold can give the front desk something to show for their hard work and motivate them to upsell. A 5% commission would be equivalent to $1 for every $20 upgrade sold. This will give agents a bonus without putting a large dent in your upgrade revenue.


•Train front desk staff to negotiate. Giving desk agents the freedom to negotiate, within reason of course, could be the difference in selling the upgrade or not. It may be necessary to look at availability and hold a short daily meeting with agents to provide guidelines, but maintain flexibility for agents to negotiate upon arrival.


Train your front desk staff to:


•Know the property
•Know the selling points and highlights of each room type and what type of travel/number of travelers the room type is best suited for. For example, if a family of four comes to the front desk and they have booked a room with one king bed and pull-out couch, that would be the time to suggest they upgrade to a room with two queen beds and pull-out couch for an additional $30 per night because they would be more comfortable.

•Know availability. Before each shift, check availability and see if there are any room types that are oversold and would be given complimentary upgrades in order to balance room inventory. Also, check to see if some of the more exclusive room types are sold out as to not oversell a room type that cannot be fixed. Make sure that if a guest wants to upgrade for their entire stay, that the room type is available before upgrading them.

•Ask every arrival. View every arrival as an opportunity to create more revenue for the hotel and for yourself. Some guests may not understand all of the room types so it is beneficial to inform them of the different options. For example, if a guest arrives and they are not booked in an ocean view room but you do have one available, you could inform them that you have rooms with preferred views available.

•Negotiate, don’t haggle or annoy. If a guest does not wish to purchase an upgrade, do not push the issue. Remember, guest satisfaction comes first. If a guest does consider an upgrade, remain professional during negotiations.

The basics of up-selling have not changed. What has changed is the increased opportunity for front desk personnel to affect your bottom line through greater understanding of your room inventory, motivation and the use of more sophisticated property management systems. Up-selling has the potential to generate more revenue with each reservation, and surely deserves attention by management and frontline staff.

Friday, July 23, 2010

The Worker or The Tools..

(Caroline Cooper writes some good articles and has great insight.)


The saying goes "a bad workman always blames his tools". But is it always the workmen that are at fault?


Today I had a delivery, and the poor driver was getting extremely frustrated with his hand held scanner. He had to reset it twice before it showed the delivery for me to sign. Now how much of this was down to operator error I can't say, but one thing was for sure, he was not happy about it. Neither was I for that matter as I was left standing on the doorstep for 10 minutes while this was going on, when frankly I had better things to do!


But it made me reflect on how well we provide the right resources and tools for our staff to do their jobs, and then give them the necessary training to utilise them to the full. Failure to do so is frustrating for the employee, and inevitably has a knock on effect on the customer experience, as was evident today.



Equipment

The most obvious is the provision of the right equipment. This might be as simple as the right accessories for your vacuum cleaners, right the way through to your heavy kitchen or laundry equipment. Equipment that is unreliable or fails to do the job for which it was designed can be a huge source of frustration for staff.

Consult with those who will using the equipment before making investments. Skimping on inferior quality equipment might help the initial cash flow, but in the end seldom pays off. However ask whether or not you need the all singing all dancing model, or just the basic. Why pay for extra features if they are seldom, if ever, needed?

Have a system in place for maintenance, whether this is done in house or with a contractor. And have a reporting process if there are problems; maybe when the equipment doesn't appear to be functioning on all four cylinders, or gets damaged. Failure to report and deal with problems promptly not only leads to staff frustrations, and later accusations of who's fault it is, but could cost you dearly in the long run if it causes long-term damage.

Then ensure your team get the full training they need to get best use out of the equipment. Talk to your suppliers to support with this training. And ensure they understand the maintenance required and can spot quickly when there are faults that need reporting. Remember too the equipment that your customers will be using - irons in rooms, LCD projectors in meeting rooms, gym equipment. It's easy for these to get overlooked.

Products and consumables

In the kitchen is obvious to have the right products, as the end result is so evident if the correct ingredients have not been sourced. But this extends to all areas of the hotel - the appropriate cleaning products for the job, the correct grade of printer ink and paper, the quality of toiletries- each will have an impact on the finished result and how easy they are to use or work with, and whether they deliver what is required to the right standard. Simple little things can have a huge impact on the amount of effort needed from your team and on the quality of the end result.



Time

Not having enough time to do the job to standard can be very sole destroying for people, particularly when they want to do a good job, but they just don’t have the time to do that effectively. Spend time with your staff to assess how long a task should take. And if it is taking longer than it should, assess what is causing the extra time. It may be down to the equipment, products or systems causing a bottleneck, or again it may be down to lack of training on the best approach to complete the task.

If you give a member of staff additional responsibilities or duties, be realistic; unless you are increasing their hours something else will need to give to make way for this. Spend some time now identifying how that time can be made up. If you're not careful they could end up cutting corners on the most critical tasks rather than cutting out low priority ones.



People

What happens when a member of staff leaves, or goes on holiday? What impact does that have on the rest of the team? The effects may be felt in other departments too, if they are dependant on this person for information or ordering, for example.

Are there skills shortages in certain areas, which only affect you once in a while (e.g. certain types of events, or when people are on holiday) but when they do, they put pressure on the whole team?

The more flexibility you have in your team the better. This does not mean you make everyone a jack of all trades, but ensure there is always more than just one person who is able to perform each task, so there is an element of cover, and the whole place does not fall apart, just because one person is off sick.

Systems

Having systems and procedures is usually a good thing. Having systems in place for when things go wrong is key if staff are to take responsibility for putting things right without having to come running to you all the time e.g. dealing with customer complaints, wrong deliveries, faulty equipment.

Give people training in the systems. If they don’t know what the system is, or, just as importantly understand why you have it, they wont follow it. And I include in here IT systems. How often have you seen someone doing something longhand because they don’t know how to do it on a computer system in which you've invested £'000s?

Ensure that everyone works by the same set of 'rules' or systems; there is nothing more frustrating than seeing someone else do something that you are 'not allowed to do'. But, don’t be so bound by red tape that people can't use their initiative and take control of situations when needed.

It's important to review your systems from time to time. Are they achieving what they set out to do, or are they leading to frustration and bottlenecks? Talk to the people who actually use the systems to check this, as often you may not be aware of any issues. Staff will normally come up with the best way to resolve it, if you allow them.

So next time we feel like blaming the workman, just reflect for a moment. - Is it the workman that's at fault, or is it down to a lack of the right resources - equipment, products, time, people or systems. Or do you have the right resources and the right people, but failed to provide the right training to get the best from each other?

Thursday, July 22, 2010

Train The Trainer: Effectively Reaching Today’s Adult Learners

While the US unemployment rate dipped to 9.5 percent in June 2010 (the lowest level since July 2009 compared to 9.7 percent in May 2010), the report showed 125,000 jobs were lost during the month, driven by the end of temporary census positions. The June figures estimated private sector job creation was 83,000 , marking the sixth-straight month of job growth among private firms, but government and financial market expectations.


In the United Kingdom, Canada and Australia, job numbers began to rebound in the spring, but have since flattened. Financial markets around the world continue to jitter over concerns that the recession may return and only get worse. The oil leaks in the Gulf of Mexico and China are prompting major stock market fluctuations. Analysts are not consistent in their projections and many still say it could be late 2010 or early 2011 before businesses will once again be adding 200,000 jobs in a month in the US, a figure that is considered a positive growth.

A upbeat sign that our hospitality industry does appear to be rebounding was the posting of 20+ senior training positions I noted on one of the industry leading employment sites on July 16. With listings globally in hospitality businesses of varying sizes, the emergence of recovery levels of business means that hotels and hospitality businesses must re-hire the training positions they either eliminated or left vacant, Organizational Development and Associate Training are increasingly complex areas in the global hospitality field, and this is becoming more dramatic with four generations now working together. Many industries in developed countries have permanently shut down job categories and will not likely replace them, which means additional people of all ages will be entering our industry for the first time.

This article addresses the professionals who will be influencing those people entering our job markets and it offers some of what I call “hotel common sense” in effectively reaching the adult learners of today.

When we were in school, from elementary to university levels, many of us tended to have similar characteristics with most of our classmates. We were likely to be comparable in age, socio-economic background, physical characteristics and other similarities that might have included religion, political persuasion and many attitudes and life experiences.

We have learned in the past twenty years of the needs for continuous education. Today, “relearning” skills and developing new competencies regardless of age or past successes has become the norm and is expected. The “adult” student of 2011 can range dramatically in many of these former shared attributes. As an employer, manager or trainer, we need to stop and recognize the differences of today’s “student” attending a public workshop or a company sponsored training seminar.

As someone who has conducted an estimated 3,200 classes and/or workshops in my career to date, I am offering some characteristics that I have found in many of the programs I have facilitated. Understanding the “adult” learner’s perspective in recent years means using caution, as today’s diverse work force is not the same as it was less than a generation ago.
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