Siegel Sez: Not Your Father’s Power Socket
September 3rd, 2021
The Most Important Hotel “Salesperson” Right Now Is Working Behind Your Front Desk
Doug Kennedy | July 22nd, 2020
Hospitality Financial Leadership: Food Cost Net Weight
David Lund | March 30, 2020
By David Lund With Guest Author Patrick McClary When people hear the term food cost, they generally think of the simple calculation of cost / selling price = food cost %. This calculation does little more than give you a percentage. Understanding and controlling food cost is much more complex. In operations that have proper controls and processes in place a spike in food cost can be traced back to one event. Operations that do not have a strong foundation of food cost usually react with bizarre behavior such as stepping up their garbage cans thinking that the costs increases are because of people throwing out food. That may be the case,...
What Key Indicators Are Hotel Management Company CROs Tracking?
March 27, 2020
By Christopher Durso When it comes to determining the full scope of the coronavirus effect, hotel management companies are monitoring specific key indicators, as the three dozen participants in HSMAI’s HMC Chief Revenue Officer Virtual Roundtable — presented online on March 25 — shared. Four indicators topped their list: 1. CASH FLOW: Renegotiating vendor agreements — “One of the things that we’re looking at doing as a sort of first line of defense to protect cash flows is, every single vendor agreement we have, we’re either renegotiating or we’re asking to suspend payment for 90 days, even if that means suspending ...
Talent Management Strategy: Are “People” Your Most Important Asset?
Avik Bhattacharya | March 26, 2020
By Avik Bhattacharya We often come across the term in organizations that People are our greatest asset, and if developed in the right manner, can be our defining competitive advantage. However, this is not the case. Companies and organizations across all sizes, industries, and sectors invest a significant amount of time and resources to hire, motivate, train, retain, and eventually let-go employees. Glassdoor estimates an average company in the United States spends about $4,000 to hire a new employee, taking up to 52 days to fill a position. Once an employee joins your company, MIT Sloan suggests it takes them 8 to 26 weeks to achiev...
Customer Service Training Is Not What You Think It Is
Shep Hyken | March 26, 2020
By Shep Hyken Many companies have a great focus on providing an excellent or, as I like to call it, amazing customer service experience. They do customer service training during the onboarding process. Once every year or so, they have some type of refresher. Good for them, but there’s more to it than just that and it’s easier than you think. Communication is a big part of keeping the “magic” going, and to do that you must consider ongoing training. By ongoing training—and this is important—I’m not referring to pulling everyone away from their normal responsibilities for a half-day or full-day (or more) once a month or o...
Now Is a Good Time to Demonstrate Hospitality for Our Frontline Team Members
Doug Kennedy | March 25, 2020
By Doug Kennedy With some hotels closing altogether and nearly all doing massive furloughs and layoffs, these are certainly trying times financially for our frontline hospitality workers, but it is also a very emotionally challenging moment. It warms my heart to hear all the stories of hotel owners and asset managers doing all they can to provide as much pay as possible to help bridge the gap to unemployment and government assistance. Now is the time for executive through mid-level managers to also do their part and to show their frontline hospitality team members just how much they are valued personally. Certainly, there will be som...
Plan for What Is Coming
John Hendrie | March 25, 2020
By John Hendrie Well, we really do not know what that is or what it will look like, but change is inevitable, shifting, declarative, sneaking and lasting in many cases. And, you, as the Brand architect, must prepare, react and manage the current disruption and ultimate reentry into the marketplace. As demand shifts, service and product quality become more important and scrutinized. You have a choice – you can reintroduce yourself with a faint fizzle or bust upon the stage with dramatic bursts. The Coronavirus has not given us many benefits, but there is one which gives us all some reach and potential – training and development. How ...
The Adoption of a Long-Term Perspective in a Time of Crisis: Why Now Is Not the Time to Let Your Marketing and Communications Go Dark
Alan Young | March 24, 2020
By Alan Young It’s been just over a week since the World Health Organization declared the coronavirus, or COVID-19, a global pandemic. Since then, the information surrounding the continued transmission of the virus has evolved at a rapid pace, taking business owners and employees across industries for a wild, and notably scary ride. Each day, we awake to a news cycle brimming with critical updates that directly impact the well-being of our business, the experience of our clients, and find ourselves wondering: What could possibly come next? And now, as more closures commence around the world, social distancing practices go into effect,...
Hospitality Financial Leadership: Separation of Duties – Part 1
David Lund | March 16, 2020
By David Lund In the business world protecting your assets is a critical strategy. Without it, you are open to “things” happening that can cost you a fortune. I was trained with the concept of separation of duties as a foundation so in some respects I take it that everyone else has the same perspective. Recently I worked with a client that showed me just how far things can go awry when you put your trust in someone and you fail to have the proper separation and oversight. Now I know you’re thinking two or three things right now: “David is very distrusting, and he has no idea who I have looking after my affairs and besides tha...
3 Undistributed Expense Trends to Watch
HotStats | March 16, 2020
Hotel operating departments can be divided into two main groups: those that generate revenue and those that don’t. Typically, hoteliers focus on the first group when analyzing financial performance— after all, that’s where the money comes from! Thus, departments such as rooms, F&B and spa are put under the microscope, and departmental key performance indicators (KPIs) are thoroughly studied and benchmarked. The second group consists of the undistributed departments, namely Administrative & General (A&G), Information & Telecommunications systems (I&T), Sales & Marketing (S&M) and Property & Maintenan...
Meetings Mean Business Reacts to New Federal Guidance on Large Events And Mass Gatherings
Meetings Mean Business | March 16, 2020
WASHINGTON – The Meetings Mean Business Coalition has issued the following statement: “In these unprecedented times – and to prevent the further spread of COVID-19 – the Centers for Disease Control and Prevention (CDC) recommends that ‘for the next 8 weeks, organizers cancel or postpone in-person events that consist of 50 people or more throughout the U.S.’ As industry leaders who are driven by a responsibility to our clients, customers and employees, this is certainly not a directive we were hoping to see. However, it is one we intend to follow. We applaud the industry professionals who are managing as best they can thro...
COVID-19 Pushes Hospitality Industry to the Edge: Key Considerations for Stakeholders
Todd Soloway | March 13, 2020
By Todd Soloway As reports of confirmed Coronavirus cases increase, travel bans and mass quarantines go into effect, and citizens across the globe avoid all nonessential travel, the hotel industry is being hard hit. Without exaggeration, owners, managers, and brands that were already struggling, and even those that were not, may face existential decisions. To aid in addressing the myriad of issues, we have compiled a series of key points that any stakeholder should consider in navigating and evaluating the difficult decisions that lie ahead. Cost Cutting: Can Vendor Contracts Be Modified, Suspended or Terminated? Hotels are being i...
Hotel Online’s Siegel Sez for March 6, 2020 Featuring Douglas Rice
March 6, 2020
Here we go … more thoughts on the Coronavirus (COVID-19). Nope, I would rather leave that to the Center for Disease Control to keep us informed (https://www.cdc.gov/coronavirus/2019-ncov/index.html). But I warn you that I will add a link to the end that Mike Dickersbach posted on LinkedIn. The post said that maybe we need to balance our thoughts on the virus. From the business side we all are wondering what lies ahead especially after ITB Berlin cancelled three days out when many of the 160,000 attendees were already on their way to Berlin. Will more events be cancelled moving forward? Will attendance at some events be lighter? Will some ex...
COVID-19 Coronavirus as Force Majeure Contract Defense — History and Origins
Jim Butler | March 5, 2020
By Jim Butler and the Global Hospitality Group® Hotel Lawyers | Authors of www.HotelLawBlog.com 5 March 2020 See how JMBM’s Global Hospitality Group® can help you. Click here for the latest articles on the coronavirus and here for the latest on force majeure. In the article below, JMBM partner Mark Adams discusses the coronavirus in relation to force majeure provisions in contracts. This legal concept goes back centuries, but has become increasingly relevant as COVID-19 may be advanced by many in the coming days as a defense to breach of contract. This article is one of a series which will discuss the principles of force majeure ...
Guest Experience Is the New Loyalty: How Hoteliers Can Take Advantage of Technology to Elevate Guest Experience
Binu Mathews | March 3, 2020
By Binu Mathews For hoteliers, guest loyalty has become an increasingly elusive concept. A decade ago, brands would have focused on instilling loyalty through things like rewards programs or points. Now, it is more about creating an inspiring, fun, and authentic experience across the entire guest journey. Jeff Bezos once said, “We see our customers as invited guests to a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little better.” As it turns out, the recipe for loyalty in this modern, digital landscape is equal parts simple and complex for hoteliers. The basic premi...
Hospitality Financial Leadership: White Light
David Lund | March 2, 2020
By David Lund Hotels are notorious for ghosts and ghost stories. Especially in old hotels. This is a story about one of my creepier encounters with something while working in one of the oldest and most famous hotels in the world. Ever wonder why hotels have so many ghosts? The reason is lots of people die in hotels. The reason why lots of people have died is because so many people stay and sleep in hotels. I bet you have never thought about it this way so let’s run some numbers, just for fun. If a 100-year-old hotel that has 350 rooms has run an average of 70 percent occupancy and an average of 1.75 people per room occupied that’...
Solving the Industry’s Biggest Challenge: Understaffing
Jamie Baxter | February 27, 2020
By Jamie Baxter The hospitality industry is notorious for its high turnover and consistent understaffing. In fact, restaurants, bars, and other F&B businesses deal with an average 75% turnover every year - and the problem isn’t going away any time soon. The most common challenges we hear are last-minute callouts, events that far exceed a team’s size, and staff accepting other jobs. The uncomfortable truth is this: hospitality businesses can’t hire fast enough to avoid turnover and understaffing. The solution to this industry-wide pain point is completely rethinking how to staff and leaning into the new, tech-driven resources...
Hospitality Financial Leadership: What Do You Do When the Reservation Phone Stops Ringing in Your Hotel?
David Lund | February 24, 2020
By David Lund An old GM of mine was fond of this statement. He usually came at it from the other end dmsaof this by saying, “Any monkey could fill this place when the phones are ringing.” And I think he is right. As the famous saying by JFK goes, “A rising tide floats all boats.” That has largely been our industry in North America in the past 10 years. It has been high tide for a long time. But now, things are starting to look a bit different. What do you do to preserve profit when the revenue tap slows down? That’s a tall order. Given our industry’s competitive nature, we all do the same thing when the volume goes dow...
Why Businesses Should Invest in Soft Skills Training
Hospitality Insights | February 20, 2020
There is a richness in possessing attributes that technology can't compete with; and it is why soft skills training are crucial to a company's longevity. “Adulting”: Going to work. Remembering to submit your tax return. Putting out the garbage. Hoovering before the dust bunnies form their own tiny army. Almost mechanic dealings with the things that keep our daily lives ticking over. This is contrasted with the more recent rise of “humaning” on social media: Pursuing activities that define us as homo sapiens. Human beings capable of showing kindness and empathy. Human beings with quirks and flaws. Complex creatures shaped by all we...
How to Get That Wayward Employee’s Attention
John Hendrie | February 5, 2020
By John Hendrie In this new world of changing market dynamics, we have the typical response – we ask more of our employees. In many cases, we just pile on the extra assignments, “rewarding” our top employees with additional work and responsibilities. Many times, we do not even provide the proper training or resources to perform the job(s). Across the board we are demanding more for or with less. We end up with overburdened employees or those who simply are not interested in excelling or paying attention to the demands of the work. Our customers suffer; you are frustrated. The employee who is not contributing is the real challe...
5 Trends Making an Impact on the Hotel Industry
Karan Iyer | January 31, 2020
By Karan Iyer Technology and other trends are creating big ripples in the hospitality industry. When you know what is working and what is not, it allows you to serve your customers better. Let us look at 5 important trends in the hotel industry that will help you grow your hotel business. Technology Supporting Smoother Hotel Operations Managing a hotel is no longer chaotic or challenging, thanks to modern technology and software sophistication. Systems like property management software and revenue management system for hotels are increasingly being adopted. Such software helps in providing a hassle-free booking experience for ...
Hotel Marketing: Tackling Challenges, Crushing Goals in 2020
Jennifer Andre | January 30, 2020
By Jennifer Andre Increasing customer engagement, acquisition, and sales leads. Shifting consumer landscape. We’ve hit a new year, and decade, though the challenges and pressures on digital marketers haven’t changed dramatically from the year we just left behind. But now, add the increasing demands from guests and unique challenges facing hotel owners and hotel marketers, and 2020 gets a bit more exciting. Sustainability. One of the most important issues facing the world today, and a key factor in successful brand management for hotels, as consumers make it a shopping priority. Expect to see even more hotels pledging to eliminate sm...
Hospitality Financial Leadership: Only 2% Better
David Lund | January 27, 2020
By David Lund When we think about solving a problem or fixing a situation and especially when it is a complex issue, we tend to put our head in the sand, throw up our hands and say, “This is not working. It’s so screwed up it will never get better.” Time to wake up! There is always something we can do to solve a problem. There is no problem to begin with, if there is nothing we can do. I have experienced this… The solution lies in the 2% Ask yourself or work with your coach (have you got one yet?), friend or co-worker. Have that person ask you the following and fill in the blank question. I am going to assume our problem is ge...
Hotel Apps Enter a New Decade
Margaret Ady | January 27, 2020
By Margaret Ady It’s time to explode the old notion of the app as we move into 2020 and look at the breadth of possibilities that a hotel app store offers. Here are a few that have gotten my attention as of late Two point five million! Well, nearly 2.5 million. That’s how many apps the Google Play store has. Apple’s store came in second at 1.8 million apps. For perspective, 1.69 million people live on the island of Manhattan. That’s more than one app for every person on the island. Apps have become the go-to for managing our lives, both the operations (budgets, exercise, bill paying) and outer lives (work, social, news apps). ...
HVS 2020 Hotel Transaction Outlook
Benjamin A. Levin | January 27, 2020
With the strength of the U.S. economy, hotel transaction activity should remain strong in the near term; however, as we look further out, things become a little less optimistic. Before we discuss the future, let’s take a quick dive into what happened in the past As expected, hotel transaction volume fell to a historic low during the peak of the Great Recession in late 2009, a drop that began roughly 24 months earlier at the end of 2007. Similar to the rebound in performance, transaction activity among economy hotels recovered rapidly, but soon declined as investors shifted their focus to midscale and upscale hotels, which recovered more ...
