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Complete hospitality study

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Some key points of the hospitality industry I studied

Some key points of the hospitality industry I studied

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  • 1. For the past 15 years I have provided outstanding customer service in the retail, transportation, financial and government Industries. Although I have been highly successful and have been recognized by my peers, employers and clients for my dedication and achievements, my current and long term goal is to transition that same passion and success to the hospitality industry. To ensure I could provide immense value to a hotelier, I began a process to educate myself on all the important attributes and challenges of the industry. The first objective was to determine exactly what those attributes and challenges were. To accomplish this task, I identified the most prestigious and influential hospitality schools & universities relying on professional publications and the internet (US News and World Report, The Princeton Review, The Journal of Hospitality & Tourism Research, and The bestschools.org etc...). Once I had a finalized list of the influential hospitality schools & universities, I went to each individual school’s website and compared the courses they offered vs. the other schools offerings. Any course or subject matter which was offered by 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 with a variety of hospitality professionals to obtain their perspective and guidance on further research via social media sites like LinkedIn and Facebook. Another strategy was to gain a greater understanding of guest perceptions regarding the hospitality industry. Ex: What amenities are most important to them? What are guest perceptions on the industry practices? What factors contribute to pleasant stays and which factors lead to dissatisfaction? To uncover the answers to these important questions I dissected hundreds of reviews onTripadvisor.com. Finally I studied a large sample of the J.D. Power and Associates 2011 Customer Service Champions to examine any 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 the Industry award winners and some of the major chain and top third party management winners. This presentation is a small sample of the hospitality topics I have studied and by the end of this presentation, I am confident that the viewer/reader will be convinced of the commitment I have to the hospitality industry and the benefits I would bring to their property.
  • 2. Hospitality Research By Kirk Jensen 2012
  • 3. For the past seven months in order to strengthen my understanding of the hotel industry and to pursue a career, I immersed myself in the studies, research and works by some of the most experienced and knowledgeable personal in the hospitality industry. With the in-depth knowledge I acquired, coupled with my extensive customer service experience and Microsfot Excel skill set, I firmly believe that I can provide significant contributions to a property or chain seeking a consummate team player with the right attitude and enthusiasm. For verification on how a customer service oriented professional such as myself could provide immense value, just copy these link to your browser http://www.hotelmanagement.net/guest-satisfaction-trumps-hotel-location-study-says http://www.hotelnewsnow.com/Articles.aspx/6454/ADR-guest-satisfaction-Opportunityand-action These links provides reinforcement on the importance guest satisfaction is to a property and/or a chain.
  • 4. Areas of Study Branding Loyalty-Satisfaction OTA- Intermediaries Pricing Guest Perceptions Revenue Management Food & Beverage Innovation Spa Industry Casino-Gaming Industry Uniform System of Accounts for the Lodging Industry
  • 5. Areas of Study Golf Industry Workforce Scheduling Perceptual Mapping Rebranding and Rescaling The Most Important Economic Indicators Rate Fences Franchised vs. Independent Business vs. Leisure Travelers
  • 6. Hotel & Hospitality Study Statistics 35 Free Standing Spas Over 100 Hotel Brands 6,477 Hotels including 437 Extended Stay Properties 174,000 Stays 59 Resort Based Spas 208,541 Guests Over 500 financial statements 100 Casinos & 120 Indian Gaming Hotel/Casino brands Over 150 Reports & Studies Over 200 PhDs and Industry Experts Over 20 Universities-Business Schools
  • 7. Sampling of University-Business School Titles Assistant professor of services marketing Associate professor of management and organizational behavior Associate professor of finance Professor of entrepreneurship and personal enterprise Associate professor of operations management Professor of innovation & dynamic management and professor of strategy Director of the center of tourism research Professor of information systems Clinical associate professor in the School of Hospitality, Tourism, and Sports Management
  • 8. Sampling of C-Level & Distinguished Titles Managing Director at The Peninsula Beverly Hills Marketing Analyst for the Venetian Resort Hotel Casino President of Smith Travel Research Vice President CWT Solutions Group, Asia Pacific Chairman and CEO of Revenue Analytics Marriott Professor of Lodging Management and Professor in Charge of the Graduate Program Executive Vice President of Marketing, Four Seasons Hotels & Resort CEO, Revpar Guru Senior Vice President, Real Estate/Asset Management Hilton Hotels Corporation
  • 9. Sampling of C-Level & Distinguished Titles Retired President of the Four Seasons General Manager of The Mansion on Turtle Creek Executive Vice President of Operations of Embassy Suites General Manager of Disney's Polynesian Resort Brand Manager of Courtyard by Marriott Vice President of Hotel Operations Caesars Palace Brand Manager of Marriott Residence Inn President of Super 8 Motel General Manager Homewood Suites
  • 10. Sampling of Accolade and Award Winners Who Provided Some Guidance Certificate of Excellence Award from TripAdvisor Condé Nast Traveler's “Best In The World" Readers Choice Award A U.S. News & World Report AAA Four Best Hotels in the USA 2012 Diamond Award Finalist Winner Expedia Insiders Select Hotel Wyndham Hotel Group's Outstanding Revpar Performance Award Winner Marriott International, Inc Hotel of the Year Winner InterContinental Hotels Group,"Torchbearer Award"
  • 11. Branding Rebranding & Rescaling Brand Extension Brand Erosion Brand Positioning
  • 12. Loyalty & Satisfaction The differences (if any) of one-time guests and frequent/loyal guests when selecting a hotel and their satisfaction 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 loyalty programs The advantages-disadvantages-implications of loyalty programs from the hotel and guest perspective
  • 13. Online Intermediaries and Online Travel Agents Advantages vs. Disadvantages of using intermediaries The ADR, Revpar, and Occupancy consequences of completely relying on, totally avoiding and successfully integrating online intermediary relationships The result of rate inconsistency among the online distribution channels and why rate parity matters. The rise, descend and reemergence of the online intermediaries and why they are specially targeting the hospitality industry
  • 14. Pricing The financial dynamics of pricing rooms above and below a hotel’s competitive set during economic expansion and contraction Why GOPPAR should be implemented in addition to RevPar to measure performance Rack Rate Best Available Rate DemandVariable Based Pricing Duration Controls Last Room Availability Value Pricing FIT Rate Rate Fences Reference Pricing
  • 15. Guests Behavior Reactions and Perceptions How to quote prices to various demographic guests so they perceive the rates to be significantly more honest, acceptable, reasonable and fair Do guests become more receptive to industry practices over time? Does educating guests about costs, advantages and pricing practices alter their judgment of price fairness What service and quality means to each generation and what factors are important to them when selecting a hotel What attributes contribute to the perception of price unfairness Conjoint analysis & Discrete choice analysis (DCA)-based customer choice modeling techniques
  • 16. Revenue Management Which hotel segments have historically utilized and underutilized revenue management pricing What are the biggest issues that revenue managers are facing and what aspects of RM need improvement How revenue management has extended to other parts of the hotel (space, spa, and food & beverage) How the type of hotel in addition to ADR and occupancy influences a hotel’s profitability What revenue management techniques are most profitable and least profitable in economic expansion and contraction
  • 17. Revenue Management In terms of NOI percentage, what are the most profitable hotel types What are the most profitable hotels in terms of total NOI dollars The past and future of revenue management What is a bigger influence to a hotel’s bottom line, occupancy or ADR? How travel managers and industry consultants are advising their clients to handle revenue management contracts with hotels and why The application and measure of success of RM in other industries (NHL, MLB, PGA)
  • 18. Food and Beverage The effect tipping, service-charge policies and serviceinclusive pricing have on the perception of expensiveness What pricing policy has proven to be perceived as less expensive while simultaneously increasing average order size Optimal restaurant table configuration Which one of the brand equity attributes (brand awareness, brand image, brand loyalty, and perceived quality) has the strongest direct effect on revenue Which restaurant wait-list policies and fences do diners find acceptable and which ones do they the deem as being unfair
  • 19. Franchising Loyaltyy & Satisfaction Is there a correlation between customer satisfaction and the percentage of franchised properties. Why franchises change brands Why independent hotels and national chain hotels are joining forces How independent hotels can successfully compete with the large chains Advantages and disadvantages of being Independent vs. being part of a national brand
  • 20. Spa Industry How the design of the spa and treatment rooms can increase/decrease profits Global best practices for the spa industry Historically, what is the optimal number of treatment rooms to achieve the highest RevPat? The advantages & Backbar disadvantages of free Deductions standing spas vs resort/hotel spas How to Make Smart CostCutting 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 properties Perceived fairness practices in the golf industry
  • 22. How to incorporate guest data to drive gamification and to help create customized experiences. Why casino loyalty programs are more effective than hotel programs? 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 information What information sources do travelers consult during the various stages of the hotel section process(beginning, middle and late stages).
  • 24. Innovation What 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 Practices Best practices from some the industry's most prominent chains and properties: The Peninsula Hotel The Pierre The Waldorf Astoria The Greenbrier The Four Seasons Embassy Suites The Mansion on Turtle Creek + 74 otheir hospitality firms The Breakers Hotel The Boulders Hotel Wyndham Hotels and Resorts
  • 26. J.D. Power and Associates 2011 Customer Service Champions
  • 27. Guest Services Satisfaction How much and to what extent in the lodging industry does employee satisfaction mean and what it means to the industry’s best practice champions? What strategies do hospitality firms employ to increase employee satisfaction? What compensation systems more positively affect employee performance? The true costs of employee turnover (Hard, Soft, and Opportunity) Differences of satisfied stayers, satisfied switchers,
  • 28. The Resort Industry The MICE Segment Cruise Industry The Extended Stay Market Corporate Accounts Franchise License Agreements Uniform System of Accounts for the Lodging Industry (USALI) Measuring Housekeeping Performance Shoulder Season Revenue 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 80-percent range and impossibly low debt-coverage ratios. In 1953 Marriott becomes the first hotel stock opening on the NYSE at .25 a share 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 segment introduced with Marriott's Residence Inns and Holiday Corporation's Homewood Suites. 1983-Westin is the first major hotel company to offer reservations and checkout using major credit cards. VingCard invents the optical electronic key card 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 surge. Hotel values increased at an average annual rate of well over 20% Hotel values fell by 9.8 percent in 1990. An Arthur Anderson study reveals that us hotels lost 5.5 billion dollars 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. 1995 Choice and Holiday Inn are the first to introduce online booking capability. In 2001 the industry is rocked by the events of September 11. U.S. hotels lose more than $700 million in revenue in the two weeks immediately following the 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 revenues, the U.S. lodging industry returns to positive profit growth. In 2006 and 2007, the top 30 hotel brands and the industry as a whole increased the hotel brand website booking 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 HotelExecutive.com. HotelMarketing .Com Wharton – University of Pennsylvania PKF Hospitality Research The International Society of Hospitality Consultants Hospitality Asset Managers Association (HAMA) Hospitality Sales & Marketing Journal of Revenue Association & Pricing International Management WWW.HOTELSMAG.COM The American Customer Satisfaction Index Hospitalitynet.org
  • 33. ASIA Spa Institute The Day Spa Association American Gaming Association HotelManagement.Net Professional Beauty Association IBIS 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 Wishing You Were Here Book online and save at www.EaglesNest.Com Partnered with www.visitmyrtlebeach.com Like Us On Facebook Luxury Ocean Front Rooms. Starting at $195.49 per Night
  • 35. Favorite Hospitality Quotes “Whether you were a greeter at Wal-Mart or a sales manager or bookkeeper in another industry, these are skills 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 the customers happy." John Willard Marriott “The reason for our success is no secret. It comes down to one single principle that transcends time and geography, religion and culture. It’s the Golden Rule – the simple idea that if you treat people well, the way you 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 still may 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 the mercy of the customer.” Master the hotel business and the business of the hotel Hire for attitude, train for skill