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Complete Hospitality Study

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Overview of a 7 month long project where I did research on the Hospitality/Hotel industries..

Overview of a 7 month long project where I did research on the Hospitality/Hotel industries..

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  • 1. For the past 15 years I have provided outstanding customer service in the retail, transportation, financialand government Industries. Although I have been highly successful and have been recognized by mypeers, employers and clients for my dedication and achievements, my current and long term goal is totransition that same passion and success to the hospitality industry. To ensure I could provide immensevalue to a hotelier, I began a process to educate myself on all the important attributes and challenges ofthe industry.The first objective was to determine exactly what those attributes and challenges were. To accomplishthis task, I identified the most prestigious and influential hospitality schools & universities relying onprofessional publications and the internet (US News and World Report, The Princeton Review, TheJournal of Hospitality & Tourism Research, and The bestschools.org etc...). Once I had a finalized list ofthe influential hospitality schools & universities, I went to each individual school’s website and comparedthe courses they offered vs. the other schools offerings. Any course or subject matter which was offeredby multiple schools helped me pinpoint which topics to study.The next step was to gather the resources. The resources I employed consisted of internet searches,textbooks, and industry publications. Once I had studied all the material, my next step was to speak witha variety of hospitality professionals to obtain their perspective and guidance on further research viasocial media sites like LinkedIn and Facebook.Another strategy was to gain a greater understanding of guest perceptions regarding the hospitalityindustry. Ex: What amenities are most important to them? What are guest perceptions on the industrypractices? What factors contribute to pleasant stays and which factors lead to dissatisfaction? To uncoverthe answers to these important questions I dissected hundreds of reviews onTripadvisor.com. Finally Istudied a large sample of the J.D. Power and Associates 2011 Customer Service Champions to examineany common traits among these champions or if any unique trait existed.In addition, I was very fortunate enough to receive some advice from some of the AH&LA Stars of theIndustry award winners and many of the major chain and top third party management winners. Thispresentation is a small sample of the hospitality topics I have studied and the statistics of the references Iutilized. By the end of this presentation, I am confident that the viewer/reader will be convinced of thecommitment I have to the hospitality industry and the benefits I would bring to a property or chain.
  • 2. Hospitality Research Summary By Kirk Jensen 2012
  • 3. For the past seven months in order to strengthen myunderstanding of the hotel industry and pursue a career, Iimmersed myself in the studies, research and works by some ofthe most experienced and knowledgeable personal in thehospitality industry.With the in-depth knowledge I acquired, coupled with my extensivecustomer service experience and Excel skill set, I firmly believethat I can provide significant contributions to a property or chainseeking a consummate team player with the right attitude andenthusiasm. For verification on how a customer service orientedprofessional such as myself could provide immense value, justcopy these link to your browserhttp://www.hotelmanagement.net/guest-satisfaction-trumps-hotel-location-study-sayshttp://www.hotelnewsnow.com/Articles.aspx/6454/ADR-guest-satisfaction-Opportunity-and-actionThese links provides reinforcement on the importance guestsatisfaction is to a property and/or a chain.
  • 4. Areas of Study Branding Loyalty-Satisfaction OTA- Intermediaries Pricing Guest Perceptions Revenue Management Food & BeverageInnovationSpa Industry Casino-Gaming Uniform System of Accounts Industry for the Lodging Industry
  • 5. Areas of Study Golf Industry Workforce Scheduling Perceptual Mapping Rebranding and Rescaling The Most Important Economic IndicatorsRate FencesFranchisedvs.Independent Business vs. Leisure Travelers
  • 6. Hotel & Hospitality Study Statistics Over 100 Hotel Brands 35 Free Standing Spas6,477 Hotels including 437 Extended 59 Resort Based SpasStay Properties 174,000 Stays Over 500 financial 208,541 Guests statements 100 Casinos & 120 Indian Gaming Hotel/Casino brands Over 150 Reports & StudiesOver 200 PhDs and Industry ExpertsOver 20 Universities-BusinessSchools
  • 7. Sampling of University-Business School TitlesAssistant professor of Associate professor of operationsservices marketing managementAssociate professor Professor of innovation &of management and dynamic management andorganizational professor of strategybehaviorAssociate Director ofprofessor of the centerfinance of tourism researchProfessor ofentrepreneurship Professor ofand personal informationenterprise systems Clinical associate professor in the School of Hospitality, Tourism, and Sports Management
  • 8. Sampling of C-Level & Distinguished TitlesManaging Director at The Peninsula Beverly HillsMarketing Analyst for the Venetian Resort Hotel CasinoPresident of Smith Travel ResearchVice President CWT Solutions Group, Asia PacificChairman and CEO of Revenue AnalyticsMarriott Professor of Lodging Management and Professorin Charge of the Graduate ProgramExecutive Vice President of Marketing, Four Seasons Hotels& Resort Senior Vice President, RealCEO, Revpar Guru Estate/Asset Management Hilton Hotels Corporation
  • 9. Sampling of C-Level & Distinguished TitlesRetired President of the Four SeasonsGeneral Manager of The Mansion on Turtle CreekExecutive Vice President of Operations of Embassy SuitesGeneral Manager of Disneys Polynesian ResortBrand Manager of Courtyard by MarriottVice President of Hotel Operations Caesars PalaceBrand Manager of Marriott Residence InnPresident of Super 8 Motel General Manager Homewood Suites
  • 10. Sampling of Accolade and Award Winners Who Provided Some GuidanceCertificate of Excellence Award from TripAdvisorCondé Nast Travelers “Best In The World" Readers ChoiceAward A U.S. News & World Report AAA Four Best Hotels in the USA 2012 Diamond Award Finalist Winner Expedia Insiders Select HotelWyndham Hotel Groups Outstanding Revpar PerformanceAward WinnerMarriott International, Inc Hotel of the Year WinnerInterContinental Hotels Group,"Torchbearer Award"
  • 11. Branding Rebranding & Rescaling Brand Extension Brand Erosion Brand Positioning
  • 12. Loyalty & SatisfactionThe differences (if any) of one-time guests andfrequent/loyal guests when selecting a hotel and theirsatisfaction level Should hotels offer loyalty programs to guests who book their stay on internet–based travel intermediaries? Do loyalty programs really work?Why casino loyalty programs outperform hotel loyaltyprograms The advantages-disadvantages-implications of loyalty programs from the hotel and guest perspective
  • 13. Online Intermediaries and Online Travel AgentsAdvantages vs. Disadvantages of using intermediariesThe ADR, Revpar, and Occupancy consequences ofcompletely relying on, totally avoiding andsuccessfully integrating online intermediaryrelationshipsThe result of rate inconsistency among the onlinedistribution channels and why rate parity matters.The rise, descend and reemergence of the onlineintermediaries and why they are speciallytargeting the hospitality industry
  • 14. Pricing The financial dynamics of pricing rooms above and below a hotel’s competitive set during economic expansion and contractionWhy GOPPAR should be implemented in addition to RevParto measure performanceRack Demand-Rate Best Available Variable Based Rate Pricing Duration Controls Value Pricing FIT RateLast Room ReferenceAvailability Rate Fences Pricing
  • 15. Guests Behavior Reactions and PerceptionsHow to quote prices to various demographic guests so theyperceive the rates to be significantly more honest,acceptable, reasonable and fairDo guests become more receptive to industrypractices over time?Does educating guests about costs, advantages and pricingpractices alter their judgment of price fairnessWhat service and quality means to each generation and whatfactors are important to them when selecting a hotelWhat attributes contribute Conjoint analysis & Discreteto the perception of price choice analysis (DCA)-basedunfairness customer choice modeling techniques
  • 16. Revenue ManagementWhich hotel segments have historically utilized andunderutilized revenue management pricingWhat are the biggest issues thatrevenue managers are facingand what aspects of RM needimprovementHow revenue management hasextended to other parts of the hotel(space, spa, and food & beverage)How the type of hotel in addition to ADR and occupancyinfluences a hotel’s profitabilityWhat revenue management techniques are most profitableand least profitable in economic expansion and contraction
  • 17. Revenue ManagementIn terms of NOI percentage, what are the most profitable hoteltypesWhat are the most profitable hotelsin terms of total NOI dollarsThe past and future of revenuemanagementWhat is a bigger influence to a hotel’sbottom line, occupancy or ADR?How travel managers and industry consultants are advisingtheir clients to handle revenue management contracts withhotels and whyThe application and measure of success of RM in otherindustries (NHL, MLB, PGA)
  • 18. Food and BeverageThe effect tipping, service-charge policies and service-inclusive pricing have on the perception of expensivenessWhat pricing policy has proven to be perceived as lessexpensive while simultaneously increasing average ordersizeOptimalrestauranttableconfigurationWhich one of the brand equity attributes (brand awareness,brand image, brand loyalty, and perceived quality) has thestrongest direct effect on revenueWhich restaurant wait-list policies and fences do diners findacceptable and which ones do they the deem as being unfair
  • 19. Franchising Loyaltyy & SatisfactionIs there a correlation between customersatisfaction and the percentage of franchisedproperties. Why franchises change brandsWhy independent hotels Advantages andand national chain hotels disadvantages ofare joining forces being Independent vs.How independent hotels being part of a national brandcan successfully competewith the large chains
  • 20. Spa IndustryHow the design of the spa and treatment rooms canincrease/decrease profits Global best practices for the spa industryHistorically, what is the optimal number of treatment roomsto achieve the highest RevPat? The advantages &Backbar disadvantages of freeDeductions standing spas vs resort/hotel spas How to Make Smart Cost- Cutting Choices Key components to spa revenue maximization
  • 21. Golf Industry How the events of September 11, 2001 and the financial crisis of 2003 affected golf resort occupancies compared to the national average. In terms of ADR, occupancy and RevPar what is the difference in comparison to resort properties and the difference compared to all propertiesPerceived fairness practices in the golf industry
  • 22. Why casino loyaltyHow to incorporate guest programs are moredata to drive gamification and effective than hotelto help create customized programs?experiences. How Tribal Casinos Compare to Commercial Casinos What domestic casino regions have the highest gaming & accommodation satisfaction and why?
  • 23. Innovation How to use interactive methods to elicit guest perceptions and the benefits those methods have over the traditional methods What different sources do business vs. leisure guests use as hotel information sources What internet/social media sites do female vs. male travelers consult for hotel informationWhat information sources do travelers consult during the various stages of the hotel section process(beginning, middle and late stages).
  • 24. InnovationWhat characteristics do technology –ready individuals possess What percentage of hotel internet searches convert to online reservations and where do searchers go if they switch to another booking method What demographic attributes differentiate guests who use the internet for hotel searches
  • 25. Best PracticesBest practices from some the industrys most prominentchains and properties:The Peninsula Hotel The Pierre The Breakers HotelThe Waldorf Astoria The Greenbrier The BouldersThe Four Seasons Embassy Suites HotelThe Mansion on Turtle Creek Wyndham Hotels and Resorts+ 74 otheirhospitality firms
  • 26. J.D. Power and Associates 2011 Customer Service Champions
  • 27. Guest Services SatisfactionHow much and to what extent in the lodging industry doesemployee satisfaction mean and what it means to theindustry’s best practice champions?What strategies do hospitality firms employ to increaseemployee satisfaction?What compensationsystems more positivelyaffect employeeperformance? The true costs of employee turnover (Hard, Soft, and Opportunity)Differences of satisfied stayers, satisfied switchers,
  • 28. The TheResort ExtendedIndustry Stay MarketThe MICE CorporateSegment Accounts Franchise LicenseCruise AgreementsIndustry Uniform System of Accounts for the Lodging Industry (USALI)Measuring Shoulder SeasonHousekeeping RevenuePerformance Enhancement
  • 29. Pre 1990 Hotel Industry Milestones In the 1980’s many hotel assets were highly leveraged, with loan-to-value ratios in the 75- to In 1953 Marriott becomes the 80-percent range and first hotel stock opening on the impossibly low debt-coverage NYSE at .25 a share ratios. In 1970 Hilton becomes the first billion-dollar lodging and food service company and the first to enter the Las Vegas market 1988 Extended stay 1983-Westin is the first major hotel segment introduced company to offer reservations and with Marriotts checkout using major credit cards. Residence Inns and VingCard invents the optical Holiday Corporations electronic key card Homewood Suites. 1985 American Airlines announced the “Ultimate Super Saver Fare” which is widely viewed as the birth of revenue management
  • 30. Post 1990 Hotel Industry Milestones In 1993 The hotel industry saw the beginning of a 5 year Hotel values fell by 9.8 percent surge. Hotel values in 1990. An Arthur Anderson increased at an study reveals that us hotels lost average annual rate 5.5 billion dollars of well over 20% In 1991 With the recession in full force and the Gulf War underway, hotel values fell by an additional 27.7 percent. Average occupancy dropped to 60.8 %, a 20 year low. Industry sees record losses, 61.8 percent. In 2001 the industry is rocked by the events of September 11. U.S. hotels lose 1995 Choice and Holiday Inn are more than $700 million in revenue in the the first to introduce online two weeks immediately following the booking capability. terrorist attacks 1996 Best Western celebrates its 50th anniversary, making it the oldest continually operating brand.
  • 31. 2000’s Hotel Industry Milestones 2004 After three years of declining In 2006 and 2007, the top 30 revenues, the U.S. hotel brands and the industry lodging industry as a whole increased the returns to positive hotel brand website booking profit growth. contribution to as high as 76.1 Twenty-four new hotel brands launched between 2005 and 2006, bringing the total number of brands to 210 (compared to 81 brands in 1980). The average daily rate (ADR) for a U.S. hotel room breaks the $100.00 mark. ADR reaches $103.87.
  • 32. American Hotel & Lodging Association Market Metrix The Center for Hospitality Research at Cornell University Hotelrevenuetools.com PKF HotelExecutive.com. Hospitality Wharton – University of Pennsylvania ResearchHotelMarketing .Com The International Society of Hospitality ConsultantsHospitality Asset Managers Association (HAMA)HospitalitySales & Hospitalitynet.orgMarketingAssociation Journal of RevenueInternational & Pricing Management WWW.HOTELSMAG.COM The American Customer Satisfaction Index
  • 33. ASIA Spa Institute The Day Spa AssociationAmerican Gaming HotelManagement.Net Professional BeautyAssociation AssociationIBIS World’s Health Spa Resorts market research report Valuation Resources.com Gaming Industry Observer HVS Golf Services Associated Bodywork and Massage Professionals International Society of Hospitality Consultants
  • 34. Eagles Nest Hotel Luxury Ocean Front Rooms. Starting at $195.49 per Night Wishing You Were Here Book online and save at www.EaglesNest.ComPartnered withwww.visitmyrtlebeach.com Like Us On Facebook
  • 35. I initially considered a career in the hospitality industry when I accepted a finance contract position in theEdison NJ area. Since I didn’t know how long the contract employment was going to last, I didn’t want tosign a long term lease on an apartment so I rented a room on a monthly basis at an economy hotel. Itwas during this period that I acquired my interest in the hospitality industry. For approximately eightmonths I got to personally observe the operations of a hotel, from top to bottom. As I became moreknowledgeable about the hotel environment, I also became more confident about the level of success Icould provide to a property or chain and their operations. One of the reasons why I became veryinterested in the hospitality industry and why I believe I can provide significant value is because I realizedthat the factors that affect the success for a property or chain align perfectly with my personal strengths.Guest Services &Satisfaction- I started my professional career as a store customer service manager fora previous Fortune 500 electronics retailer where the store generated over $28M in annual revenueswhere my team and I were able to win three consecutive divisional customer service awards. That earlysuccess demonstrated to me the genuine, sincere interest and pride I have in satisfaction level of clientsand guests. One of the findings I uncovered from studying the best practices of the hospitality industry isthose companies who view customer service and guest satisfaction as a revenue generator rather thanan expense are usually those with higher ADR, and Revpar compared to their competitive set. Also in myresearch, I came across an article written by the Executive Vice President of Marketing of a prominenthigh end luxury hotel where she stated “On a given day in one of our hotels, it has been estimated that ithere will be more than 4,000 guest–staff interactions” . 4,000 interactions is a plethora of opportunities fora hotel to distinguish themselves from the competition, either good or bad.Teamwork- When a person examines what factors contribute to a pleasurable experience for a guest,some controllable factors include (Clean room, proper working devices, friendly staff and ease of check in& out). In most situations, those factors are administered by different personnel in different departmentsof a hotel. We all know that on a given day, anything can go wrong for a property, from something veryminute to a big issue such as loss of power or non functional air conditioning or heating. Regardless ofthe issue, it is usually how the employees and management team handle the issue in the eyes of theguest which determines if the remedy was successful or not. To exemplify how important teamwork is tome, two of my managers had these to say about me and my level of teamwork “Kirk was always willing tooffer his assistance”, and “He handles pressure well, and will voluntarily work on anything that is requiredto further the progress of the team”. Flexibility/Adaptability- Another attribute which seems to be a necessary ingredient for success in thehospitality environment which I have demonstrated is the ability to be flexible and be able to adapt to anysituation. As an example, during the peak season or on an unusual busy day a guest service agent mighthave to exhibit a higher level of energy and operate with a sense of urgency and multitask. In theshoulder or low season that same agent might focus on ways to improve revenue, efficiency or increaseoccupancy. Included in the characteristics of flexibility and adaptability is the ability to prioritize andeffectively communicate. I have exhibited these characteristics extensively in my career. The samemanagers have commented “For example, Kirk will answer and handle emails in between a lull in callvolume coming into the center. He is never idle, always busy and productive. It is because of this workethic that Kirk was Agent of the Month, two consecutive months. He won this first recognition his firstmonth in the center! Kirk quickly caught on to the training that was necessary to support our client andwas praised by the senior members of the team about his ability to capture minute details. This is just oneexample among many of Kirk’s superior skills and admirable work ethics.”i If Discounting Doesn’t Work, What Does?A Commentary on the CHR Report “Why Discounting Doesn’t Work”Barbara Talbott, Executive Vice President of Marketing, Four Seasons Hotels & Resortshttp://www.hotelschool.cornell.edu/research/chr/pubs/reports/documents/b-talbott-cornell-article-oct-04-revised-by-gmt-grw-bt-revision.pdf
  • 36. Favorite Hospitality Quotes“Whether you were a greeter at Wal-Mart or a sales manager or bookkeeper in another industry, these areskills that can transfer easily to the hospitality industry.” Cathy Keefe“When hospitality becomes an art it loses its very soul” Max Beerbohm“There is no hospitality like understanding.” Vanna Bonta“You’ve got to make your employees happy. If the employees are happy, they are going to make thecustomers happy." John Willard Marriott“The reason for our success is no secret. It comes down to one single principle that transcends time andgeography, religion and culture. It’s the Golden Rule – the simple idea that if you treat people well, the wayyou would like to be treated, they will do the same.” Isadore Sharp“Employees must be motivated rather than managed” Embassy Suites“Technical skills can be taught to employees but without the right attitude and motivation the guest stillmay leave unsatisfied.” John Sharpe“Selecting employees with the right “attitude”, out-going, organized, and think on their feet” David Bowles.“Hotels attempt a market position in an effort to boost market share. In the end however, position is at themercy of the customer.”Master the hotel business and the business of the hotelHire for attitude, train for skill

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