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Increasing Financial Returns and Guest Satisfaction through Human Capital Development
The document discusses the importance of human capital development in enhancing financial returns and guest satisfaction in the hospitality industry. It outlines key financial metrics, the role of training and development, and how effective communication and service influence guest loyalty and operational costs. The conclusion emphasizes investing in staff, adopting modern training methods, and leveraging social media to drive profitability and customer satisfaction.
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Increasing Financial Returns and Guest Satisfaction through Human Capital Development
- 1. Increasing Financial Returns andGuest Satisfaction through Human Capital Development 5 February 2015 Lugano, Switzerland David Topolewski
- 2. • Guest Satisfaction •Financial Metrics • What Drives Guest Satisfaction and Financial Metrics • Where Does Human Capital Fit In? • What Drives Human Capital Development? • Training and Development • Quality Assurance • The Challenges of Training and Development • The Future of Training and Development • Conclusions OVERVIEW
- 3. Empower the globalworkforce through engaging, impactful, and affordable mobile education.. Life long. OUR VISION
- 4. We are workingwith these great brands INTRODUCTION
- 5. Guest Satisfaction –Why is it Important? • Core KPI for Hoteliers • Guest Loyalty • Transparency • Brand Promise Delivery • Impact on Financial Returns • Essence of Hospitality
- 6. Financial Metrics –Why are they Important? • Core KPI’s for Hoteliers • They Matter to Investors • They Matter to Hotel Management Companies • Impact on Personnel • Impact on Guests • Drives Investment and Growth
- 7. Financial Metrics –Which Ones? • RevPAR • GOPPAR • Net Revenue • EBITDA • Guest Acquisition/Rental Cost • Operating Costs • ROI • Growth • Missed Revenue
- 8. Financial Metrics –What Drives Them? • Revenues and Costs • Growth
- 9. Revenues • Room Rates •Rooms Mix • Occupancy • Channels - Payout to OTA’s • F&B, Catering, Spa, etc. • Events • Activities • Other
- 10. Room Rates • RevenueOptimization around a Mean – How about Changing the Mean? • Guest Satisfaction – Cornell/STR/ReviewPro Study Cornell School of Hotel Administration confirms that online guest satisfaction has a direct impact on the financial performance of hotels. • Upselling • Occupancy • Channels - Payout of 25% to 30% to OTA’s – the $200 room is now a $150 room
- 11. Non-Room Revenues • F&B- upselling • Catering • Spa - upselling • Events • Activities - upselling • Other
- 12. F&B Upselling –An Example • 15,000 covers per month • $10 upsell/cover opportunity • $150,000/month upsell opportunity • $1.8M/year upsell opportunity • 20% success rate drives $360k in annual revenue • 4% increase in average order drive $360k in revenue • Cost - $24k • ROI is 500%
- 13. Costs • Personnel Productivity •OTA Fees, Guest Acquisition/Rental – Loyalty • Marketing • Mistaken Orders • Low Employee Engagement • Recruiting and Retention • Scheduling • Quality Assurance • Missed Revenue
- 14. Personnel and Productivity •Productivity is the Long-Term Driver of Compensation • Compensation is Correlated to Recruiting and Retention • Low Employee Retention Results in Higher Costs and Lower Guest Satisfaction and Lower Ratings • Wrong Meals and Poor Wines Cost Money and Guest Satisfaction • Weak Communication Results in Missed Revenues
- 15. OTA Costs • Commoditizationof Your Hotels – Focus on Price • Where is the Guest Loyalty? With Your Hotel or the OTA or Elsewhere? • Have You Acquired a Guest? Or are You Renting? • Are Your Service Levels Driving Guest Satisfaction or Retention? • The Take – Who Thinks 25%-30% of Revenues is Fair for OTA’s?
- 16. Guest Satisfaction Drivers •Communication with Guests • Brand Promise Delivery. Watch for the Gap. • Service Standards and Service Delivery • Process Control • Confidence to Make Judgments • Employee Experience, Engagement, Attitudes, and Skills • Management • Upselling
- 17. Where Does HumanCapital Come In? • It has Impact on Everything in Hospitality. • Revenues, Costs, Profitability, Guest Satisfaction, Guest Loyalty, Quality Assurance, Growth, Social Media, Brand Reputation, etc.
- 18. What Drives HumanCapital? • Compensation • Training and Development • Career Opportunities • Culture • Leadership
- 19. Training and Development •Revenue Impacts – Upselling Rooms, F&B, Activities, and Other • Upselling Requires Communication Skills – Do you have Mandarin Speakers to Cater to the Largest Groups of Travelers in the World? • Are You Using What Works? Or Just Pretending? • Better Service Drives Higher ADR’s • Communication a Key Ingredient to Develop Brand Ambassadors rather than Passive Order Takers
- 20. Training and Development •Cost Impacts – Higher Productivity, Fewer Mistakes, Faster Service • Cross-Training for a More Flexible Workforce • A More Flexible Workforce Allows for Easier Scheduling and Lower Costs • Training Results in Higher Staff Engagement Levels
- 21. Training and Development •Loyalty Impacts from Better Service • Higher Ratings from Better Service • Higher Ratings Drive Higher Occupancy and ADR • Better Service Drives Greater Loyalty • Higher Loyalty Drives More Direct Bookings, which Drives Higher Net Revenue and Profitability • Virtuous Circle
- 22. Training and Development •Retention Impacts – Happier and More Loyal Workforce • More Engaged Workforce • Lower Costs of Recruiting and Retention • Turnover of One Person Can Cost 30% of Salary • Huge Impact in Singapore now – Turning Away Guests while Many Tables are Empty • More Experienced Staff Can Deliver Better Service
- 23. Training and Development •Service Drives Ratings • Ratings are Ubiquitous and Will Become Even More So • Impact – Room Pricing, Occupancy, Service Consistency, Loyalty, Brand, Social Media Reputation, and Cost of Booking – Direct or OTA
- 24. Quality Assurance • ServiceLevels Impact Pricing • Service Levels Impact Brand, Social Reputation, and Loyalty • What are You Measuring? When?
- 25. Challenges of Trainingand Development • Largely Passive Printed Manuals. Boring. Not Used. • Traditional. Fixed in Time and Location. Outdated. • High Cost. Not Scalable. Not Localized. • Scheduling Headaches. • Myth of Uniqueness. Some, yes. All, no. • Little or No Data Generated from Learning Process. • Hard to Manage with Limited Data. • Low ROI. Considered Discretionary. • HR Often Bureaucratic.
- 26. The Future ofTraining and Development • Mobile. Highly Interactive. • Low Cost. Scalable. • No Scheduling Headaches. • Core Standards, with Hotel Focus on Differentiating Activities. • Lots of Data Generated from the Learning Process, with Results and Insights on Dashboards. Real-time. • Visibility into Processes. • High ROI. Considered Fundamental and Strategic.
- 27. Conclusion • Invest inYour People. • Move into the 21st Century. • Focus on Differentiating Your Offering for the Strongest Pricing. • Deliver Great Service. • Embrace Social Media with Your Workforce. • Seek Direct Bookings. • Higher RevPAR, Profitability, and Guest Satisfaction will be the Result.
- 28. Thanks! David Topolewski -CEO dtopolewski@qooco.com China: +86 1350 129 6897 US: +1 650 799 6084