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Operational priorities for hotel management 2020
1. 29 June 2020
Operational Priorities for Hotel Management 2020
• Staffing and Housing- Prior to the COVID pandemic, with unemployment at historic
lows, seasonal hospitality businesses were faced with extreme competition for personnel.
This pressure was not limited to high-quality talent or management positions, but also to
rank and file staffers. Finding even underqualified help was increasingly difficult with
each passing year. Maine’s incremental minimum wage increase ($9.00 to $12.00 from
2017 to 2020) further stressed labor budgets by pushing up the wage expectation of
higher-level workers. In addition to competitive wages, seasonal employees base their
employment decisions on factors such as location & transportation, (many don’t bring
vehicles,) quality of housing, (if housing is even available,) meal plans, employer
sponsored activities, and other benefits. Because seasonal staffers are often far away from
home, and living in company housing, they ultimately look to their managers for support
regarding domestic issues, healthcare, and other needs that usually do not fall to the
employer. I do not believe the mass unemployment caused by the pandemic will reduce
this pressure. Given the travel involved for most workers, group living conditions, and
the fact that the virus has caused unprecedented instability in this type of employment, it
will likely only be harder to recruit and retain quality seasonal workers.
o Foreign Worker Visas- Most seasonal hospitality operations rely heavily on
foreign workers. These workers are eligible to work in the United States with
either a J1 visa or a H2B visa. J1 visas are issued to current students as part of the
Work & Travel Exchange program which promotes cultural exchange abroad.
There is no monetary cost to the employer, but the employer must meet certain
standards to ensure that the student is able to engage in cultural activities and can
practice English skills while working. There are several organizations that
specialize in connecting students with U.S. employers, the biggest of which are
Interexchange and Intrax. H2B visas are for a broader range of workers, but they
require more from the employer to attain. The employer must first show that they
are unable to fill a position with local workers and then petition for visas on
behalf of the worker. The employer is responsible for all travel costs associated
with bringing the foreign worker to the worksite. Both visa programs have been
called into question by the current administration. H2B visas are now much more
difficult to obtain for smaller employers. The J1 program is currently on hold due
to the COVID pandemic.
• Facility Maintenance and Diagnostics- Historic facilities like the Claremont likely have
idiosyncratic facility systems that must be thoroughly understood by management to
prevent catastrophic breakdowns and ensure efficient updates. Cosmetic issues often
2. noted by guests and workers are important, but they are simple compared with the
internal workings of the building. Many of these internal systems may not have been
updated in several decades, and there may be little or no documentation of past updates.
Previous generations may have chosen ‘band-aid’ fixes to keep the system limping by,
leaving more systemic improvements for current management. Key systems to be aware
of include, but are not limited to, plumbing, electric, PBX phone lines, wireless internet,
fire suppression, temperature control, gas lines, door locking mechanisms, and grounds
irrigation. A strong facilities manager with local connections and hands-on experience is
a critical asset.
• Interior Design Scheme- Standardized hotel companies will have a multi-year interior
update schedule, planning for standardization and updates for everything from wall-art to
extension cords. This is not always the case with independent operations, which may
have done piecemeal updates room by room, or section by section, on an as-needed basis
over many years. This can create a hodge-podge of interior design themes which detracts
from a cohesive experience. Management should take inventory of interior assets early,
and plan accordingly for consistent, thematic updates over the long-term. Plan to spend
money on furniture and décor updates each year. Plan a five-year rotation cycle so that all
assets are updated each five years, but the cost is spread across each annual budget.
• Food & Beverage Issues- Any great hospitality operation should be able to offer a great
culinary experience. Anticipate the differences between a destination restaurant and a
hotel restaurant, which must cater to overnight guests. The destination restaurant knows
what it does well and has no need to deviate from its own theme. The hotel restaurant,
however fine its offerings, must also be prepared to cater to the dietary needs of guests
who may not have chosen their lodging based on the reputation of the restaurant alone.
Management should be prepared to be flexible in terms of dietary offerings, and should
have policies in place regarding room service, allergen control, and edible retail
offerings.
• Broadband and wireless connectivity- Guests traveling from outside Maine may be
accustomed to high-speed internet wherever they go. Management should ensure that the
facility is wired with the fastest internet speeds available in the area, and that the wireless
infrastructure covers the entire campus with equal and consistent coverage. Even when
they claim to be on vacation, seeking peace and quiet, guests will not look kindly on an
internet outage. Make sure to have multiple team members trained to troubleshoot
connectivity issues at any time of day.
• Advance Deposits and Revenue Actualization- Traditionally it has been fairly common
practice for seasonal lodging operations to require advance payment when booking a
3. reservation. This is not simply putting a credit card on file, as is common most
everywhere today, but an actual payment transfer, equal to some portion of the scheduled
stay. The Claremont’s policy appears to be to collect payment for the first two nights of
the reservation. Properties have traditionally practiced this way to maintain an income
stream during the off-season, using advance payments for cashflow purposes during the
leaner months. This can expose a business to serious liabilities if advance payments have
been used for cashflow and a catastrophic event—such as a global pandemic—causes
mass cancelations. In the best of circumstances, it can be an awkward burden for
potential guests who might not be prepared to pay immediately.
• Online Travel Agencies and Channel Management- OTA’s such as Expedia and
Booking.com have accumulated tremendous marketing power in the lodging industry.
They are an important tool for optimizing occupancy, but they are not the only tool. They
charge large commissions and constantly push participation in sales to drive bookings at
lower rates. They also become a third party in the guest-hotel relationship, which can
have both positive and negative effects. Management should be prepared to ensure rate
parity and consistent availability across all competing channels. It is important to
maintain a presence with the OTA’s while balancing them against the needs of legacy
clientele, walk-in’s, and business brought by your own website and other direct
marketing efforts.
• The Seasonal Business Model- It is my opinion that the seasonal business model is no
longer the most efficient way to do business on the coast of Maine. Shutting down a
facility for the coldest months of the year creates a havoc of wear and tear on the
building’s internal and external systems. Seasonal shutdowns mean seasonal layoffs.
Businesses spend six months getting new staffers up to speed, just in time to dismiss
them for the offseason. It is hard to maintain professional standards when you cannot
develop staff on a permanent basis. It is hard for staff to develop loyalty to their employer
when they know their position is temporary. Furthermore, a seasonal open/close
operation is not as simple as switching the lights. It is a large operation requiring much
advance planning. Management does not have an offseason. By the time the property is
put to bed and the taxes are paid, it is time to start applying for business licenses and
hiring for the next season. Granted, regional visitation will not be the same in the winter
as it is in the summer. But management can find creative solutions to attract a winter
clientele: holiday celebrations, outdoor winter recreation, local ‘staycation’ packages, etc.
• COVID-19 Precautionary Policies- It is likely that food service and lodging operations
will need to implement and execute health precautions indefinitely. While hospitality
staff and managers have long been trained and equipped for professional cleaning and
sanitation practices, management should be aware of all local, state, and federal
4. requirements and find ways to implement those precautions within the unique parameters
of the specific property.
Submitted by:
Will Matteson
Copywriter, Consultant
508 878 1522
coastalmountainwriter.com