Trying new things...

Sharing information throughout the region using a blog was an experiment in communication. We may resume this process in the future, but for now, we are taking a break from blogging and sticking to more traditional methods of communication.

Go Back to School!

This past weekend was UCONN’s open house; in October we will have parents visiting weekend. These events got me thinking about back-to-school time and why it's so often feared.

For some parents, college represents the scary fact that children are leaving home to go off their own. For some students, the notion of stepping foot on campus makes stomachs turn. For our industry however, it’s exactly the opposite. As a general rule of thumb, there are over 100 different events that occur yearly at state and local, 2- and 4-year colleges. What kinds of events take place? Well, let’s take sports for instance. Did you know that there are over 40 different NCAA sports for men and women around the country taking place all year long? Although some events might be more attractive than others (i.e. football), each sport taking place still includes students and that means there are moms and dads nationwide who want to see their kids in action. Even if it’s a Badminton tournament, parents will travel to get there. In addition, teams will be coming in from other colleges, and they need to stay somewhere too. So not only is college not something to be feared in our industry, it is something to be embraced. It is our lifeline; it is REVENUE!

What can we do to obtain this revenue? We can negotiate rates for all local colleges build strong relationships with the admissions offices and event coordinator offices to promote the hotel to anyone calling. We can get links on college websites under the "community" tab and have sales people regularly visit campuses to post fliers or rack cards. We can follow the academic and events calendars from each college and focus sales efforts around those times. The revenue opportunities are abundant, but we can’t expect it to find us. We have to pursue it.

Let’s break it down by season shall we. (Remember, most events are for both men and women.) In the fall, there are cross country, field hockey, football, soccer, women’s volleyball and men’s water polo. Winter brings basketball, bowling, fencing, gymnastics, ice hockey, rifle, skiing, swimming, indoor track, and wrestling. In the spring, there are baseball, golf, lacrosse, rowing, softball, tennis, outdoor track, volleyball, and water polo. Yes, I am even sure there is Badminton somewhere, it’s just not NCAA ranked. These events are just those associated with sports. Imagine the calendar of opportunities available when we factor in music, conferences, celebrations, and all the other events that take place on college campuses. Imagine the revenue.

So, GO back to school! I did!

What is marketing?

Blogging kind of fell to the wayside for a while, but it just takes one good thought to get me thinking and writing again. This week a college student asked me, as part of an assignment, to tell him how I describe marketing. My initial answer was one simple phrase, “Increasing Awareness.”

People will not buy a product or service that they don’t know about, so marketing is getting the product or service in front of them, hopefully in a manner that showcases how the product or service would benefit the customer. I believe that our “product,” our employee owned hotels, and those hotels managed by our employee-owned company, have a lot to offer guests traveling to our markets. If only we could make them aware of who we are and the great hotels we run.

Our company has spent millions of dollars renovating our hotels in this down economy. That strategy has provided jobs for many while taking advantage of a period of declining occupancy to get into our rooms and make improvements. Now we need to work toward a return on our investment and get the word out that we are refreshed and more ready than ever to impress guests.

We have contemporary wall and window coverings, new carpets, refreshed bedding and some sharp looking bathrooms. Many guests found rooms elsewhere when we were under construction, and we need them to return. We have to find ways to make them aware of all of the improvements made in the last few months.

Let’s put our heads together and come up with some great marketing ideas that will help our business bounce back. I know that if guests were aware of all we have to offer, they would choose to stay in a Tharaldson hotel. Let’s get out there and increase awareness!

Linda's Magic 8 Ball

If you have been paying attention to all the predictions people are making about our industry, you may have wondered where they are getting their information. I know I have. In poor economic times, it seems everyone dusts off their Magic 8 Ball to ask, “What is going to happen next?”

I have seen many of the articles published by our industry news contributors, and I have never been more confused about trends.

Recently Smith Travel and Research did a presentation at NYU, and all the doom and gloom data was covered thoroughly. (I would guess not too many people would pursue a hospitality degree if they heard that presentation) In all fairness, they did squeeze in a few good points which I will get to in a minute here.

The STR presentation was very colorful, with some really neat graphs. I think I need to take a night class at ITT Tech to learn how to make these. Unfortunately, most of these pretty graphs were pointing downward, the biggest downward trend being REVPAR at 18.2% lower this year than last. So we are not doing too badly with our decreases, right? WRONG! They coined a new term, and it is called “new frugality.” Of course they had a pretty graph to show us “new frugality” and how many travelers are trading down. This trend means our mid-scale hotels should be raking in the dough, however, most mid-scale hotels are not.”

After my first view of their presentation, I was pretty depressed and lost even more sleep than usual. I decided to revisit the presentation, this time with my pair of rose-colored glasses.

With a shade of pink, I saw the following:
Demand has not fallen below post 9/11.
ADR’s nationwide stayed above post 9/11.
Demand is actually just below pre 9/11.
Current ADR is actually still above ADR’s before 9/11.
Group business is only down 3.9% weekday and 3.8% weekend…people are still meeting.
With capital being tight, the new hotel growth pipeline is shrinking, so you may have less competition moving into your markets.

This is a lot of information to process but we need to figure out what it all really means.

Now, do you want to hear what my Magic 8 Ball says? If so, read on.

We are an immediate gratification society with short attention spans. I am probably one of the guiltiest, and you can see this by the number of McDonald’s receipts I send in every month and by my tendency to channel surf through the news, only wanting to hear the good stories.
We spoil our children. If they want to go to Wisconsin Dells on summer vacation, by all means…we are packing up the station wagon and hitting the water park resorts.
Sure, some airlines have reduced the number of flights, but the airplanes flying today certainly seem to be just as full as they were in good times, and I am pretty certain all these corporate travelers didn’t check a sleeping bag and tent to stay in when they reach their final destinations. At least I haven’t seen such items coming off the luggage carousel.


In all seriousness, predictions are tough to make, and only YOU know exactly what is going on in your market. The fact of the matter is that there is still business out there to be had. We simply need to be better with our sales efforts in order to get our needed share. The hard working Wisconsin farmer in me would say, “Bail the hay while the sun is shining but make sure you have planted lots of seeds with your sales efforts. “

Have you got a problem?

I was in a meeting with our friends at Marriott this last week and the subject came up of guests and the problems they experience. About a quarter of all Marriott guests who fill out satisfaction surveys have a problem of one type or another during their stay. It is kind of depressing to think that if that ratio holds true for all guests, 2000 to 3000 of our guests are having a problem in a Tharaldson managed hotel every day. Now I have a problem with that.

My mind starts running about the problem resolution programs we have in our hotels and whether or not they are being followed. I would certainly hope so, but that’s a lot of problems to resolve. It was at this point in the discussion about guest problems that a Marriott representative brought up challenges with his portfolio in the past and the mistakes that some operators were making. He said, “You cannot simply work to resolve problems, you need to solve problems.” His words make sense.

By solving problems, we are taking care of them before the guests experience issues. If our guest service agents make sure that special requests are met when blocking rooms, our guests are happier when they arrive. If housekeepers understand that they are in every room before our guests and that it is their responsibility to find and fix problems before guests ever walk into those rooms, our guests will have clean, comfortable rooms and they will be happier. If our maintenance people understand that the care they take in repairing and maintaining our building ensures that guests don’t have to deal with broken amenities, our guests will be happier. If our breakfast hosts and social attendants understand the importance if a well-prepared and beautifully-served meal, our guests will be happier. If our guests are happier, they will become repeat guests and help ensure that our ESOP statements keep us happy.

I hope that this ratio of guests having problems improves, but until then, do we have the right people in place to resolve issues immediately? Is every GSA well trained and empowered to handle any guest issue that arises? Do they have the support of the General Manager to handle the problem, right or wrong, as long as it is handled in the best interest of our guests? Our General Managers know better than to leave an associate alone in the hotel, unless they are confident that those employees can handle any guest concern. It’s all about having the right people and following the right process.

“Most people spend more time and energy going around problems than by trying to solve them.” - Henry Ford

What Makes Winners?

With March Madness just behind us and football season just around the corner, I started thinking about which players were returning this year and which ones were lost to the pros. Year after year I watch ESPN, and they always talk about the same teams: Ohio State, USC, Texas, Oklahoma, and Florida, all in contention for the championship. It makes me wonder how these teams are always in the running, especially when the average career of a college player is only 3.5 years. These teams have managed to build a tradition of success, triumph, and winning that spans over generations of players. Certainly it’s the players that go out and win the games, but how do those players manage to be as successful as their predecessors? I think it has less to do with the individual talents of each team member and more to do with the programs these schools have in place: conditioning, practice, game prep and so on. Even though players come and go, these programs remain in place, and the teams continue to be victorious. Coaches, trainers, and support personnel follow their programs to the letter as a means to keep the whole team strong, regardless of who is playing the game.

Our business is similar. The hotel industry as a whole also has “teams” that are constantly changing. Yet despite the changing of faces from time to time at our hotels, our company has its own tradition of success and triumph. Our hotels are consistently recognized for their excellence by our brand partners. We have not only survived, but we have thrived during times of economic hardships, even as other hotel companies have gone under. We always strive to hire the best of the best, but we also know that our success is dependent upon the “programs” that have remained consistent throughout the history of our company. By programs I’m talking about Deep Cleans, PM’s, Revenue Strategies, Cost Controls, and Service Recovery. Tharaldson believes in these programs so much that we have named them our Diamond Core Programs.

Besides recruiting the most talented people, our Diamond Cores are the reason our hotels are consistently the better performers in their markets. These tools have allowed us to survive the turnover rate and still run successful hotels, even when times are hard. As we go through the current economic stress, our programs have enabled us to cut costs without sacrificing service to our guests. The success of these programs has driven the profit of our company, which drives the success of our ESOP.

Like the teams above, we will always recruit the best talent possible, but the way we will keep ourselves victorious within the industry will be by following our programs that have led us to this point.

High School Physics

Does anyone remember learning about a guy named Lord Kelvin? He was a Scottish mathematician who came up with the value of “absolute zero,” the temperature at which all motion stops. We may have a hard time applying this to hotels, unless we are looking at Sunday occupancies, but one aspect that we can apply from Lord Kelvin’s work is a quote I have heard dozens of times over the years.

“If you cannot measure it, you cannot improve it.” Lord Kelvin

This statement is the thinking behind guest satisfaction reports, lost revenue reports, suite shop profitability, website compliance reports and just about every other report that comes out of our corporate offices. I like to think that we have a lot of smart people working in our company who receive these valuable reports. If reports are used correctly, we can see where we are, where we need to be and how to get there. However, if we can’t get there on our own, there are resources within the company to help us. We just need to ask.

I hope that everyone takes the time to look at those reports and put actions in place to improve performance. Running hotels isn’t simple, but processes like this simply make sense.

Positively Outrageous Service

Often when a person walks into a business with a need to find something or the need for service, he or she is either not acknowledged by an associate or when acknowledged, it is less than impressive. I get that kind of response more often than not and am concerned about the direction that we are headed when it comes to customer service.

For those of you that know me, you know that I am a constant seeker of good service. I want it, expect it, pay for it and quite frankly, I deserve it. I have worked hard over the years to ensure that providing great service is more of a reaction than a conscious decision. You know how it goes… be nice to the guest, smile and ask them how they are doing. It’s all pretty basic stuff, right? Well, not everyone is cut out for “get in your face” service, and those people tend to shy away from even the simplest point of service: eye contact.

I read a book about 14 years ago called POSitively Outrageous Service written by T. Scott Gross. It impacted my outlook on service so much and has stuck with me all these years. It reminds me that great service is not a new idea but old ideas that somehow got lost. I think about it every time I hear someone say, “Let’s get back to basics.” “Positively Outrageous Service” is what creates lifetime customers, and we have the opportunity to give “Service so Memorable” or “Service so Miserable.” Either way, our guests are going to talk about it.

Here is something to think about for a moment: How can we randomly deliver unexpected great service? Customers have nearly endless options. T. Scott Gross tells us, “If you want to be remembered, it’s going to take something truly special to earn you a position in the customer’s mind.” This is absolutely true.

Managing in today’s world brings new challenges to running our businesses successfully. Cut back here! Cut back there! Watch those expenses! With these pressures in place, it would appear that the service piece should become the easiest piece of the puzzle. Service is more than just a smiling face. Service is the way associates look and present themselves. When we walk into our hotels and observe our associates doing what they were trained to do, we need to ask ourselves some questions: Are we making a positive impression on our guests or do we need to go back to basics? Have we hired the right people and trained them on service to the point that it is the first and immediate reaction? With every hotel room having the same basic amenities, it is our customer service that will decide if our guests make reservations with us for future stays. That service needs to be natural, immediate and exceptional. That’s why we are in this business!

I Am Reading More These Days

I find myself reading more articles on the economy and the hotel industry than I had in past years. Some of what I read has very little impact on my thoughts about how the region is running and others spark many thoughts. I wanted to share this article with you as it hits on cutting costs where the guest will not feel it and focusing our sales and marketing efforts where they make the largest impact for the dollar spent.

This article also hits on preventive maintenance a bit and we all know how hotels with a good preventive maintenance program are consistently under budget in the property maintenance lines.

I would encourage you all to read more about your industry and your markets in a time when the right ideas can make such a positive impact in how we perform. - Steve



The Invisible Cutback

So you need to reduce expenses somewhere, but just what should go? Here’s how some hotels are lowering expenses without guests even noticing.

Thursday, April 16, 2009

David Wilkening

Fresh-cut flowers in the lobby? Cut them, please.

Free coffee? Don’t perk it anymore, decaf or not.

In today’s perilous economic times, many hotels are ending some of their perks. But what should you eliminate? And what should be your priorities for cutbacks? What perks can you lose without impacting your customers?

Perhaps the best advice on what to do next is to consider what amenities might be least missed by your guests. “There are many good reasons why it’s a bad idea to cut dollars from your marketing budget this year, but if you absolutely must cut corners, prioritize before you do,” suggests Neil Salerno, a consultant and marketing coach. Some hoteliers are remaining adamant about cutting back for obvious reasons.

“Why would you cut an amenity now?” asks Glynn Knight, a Courtyard Marriott general manager in Chicago. “That would be shooting ourselves in the foot to do that. If anything, we’ll figure out a way we can add something.”

“We will not touch anything that would negatively affect our guest service level,” says Gretchen Spear, Hyatt Regency Chicago promotions manager. But there are areas to cut back. One example of that is to reduce print advertising. “Consistency is important to increasing direct sales, so to compensate for losses, we are spending less on print advertising and not cutting back on the services we offer,” says Bill Jordan, manager of communications and sales at the Omni Hotel in downtown Richmond, VA. One obvious area to cut costs without shortcutting guests is when an amenity is no longer required.

A good example is Marriott International, which says it is ending its free newspaper delivery at its 2,600 US hotels. “I visit more than 250 hotels a year, and more often than not I am stepping over unclaimed newspapers as I walk down the hallway,” says CEO J. W. Marriott Jr. in a statement. As of June 2, Marriott’s full service hotels will ask guests at check in if they want a complimentary newspaper. The chain cites a 25 percent decline in demand for newspapers. Other ways of cutting back without depriving guests:
The Wyndham chain is taking sewing kits, mouthwash and shower caps out of rooms. The products will be kept behind the front desk where guests can request them.
Some hotels and chains have stopped serving free coffee in the lobby. “We would make it, throw it away, make it, throw it away. You got one free cup but it costs me $22 from all the waste we had,” says Kim Daniel, general manager of The Courtyard by Marriott in Huntsville, AL.

The Ritz-Carlton is doing away with displays of fresh-cut flowers in hotels around the US. Instead, the chain is setting up apples or potted plants, which are cheaper and need less maintenance. “It isn’t anything that the guest is going to notice but yet it can cause considerable savings,” says Vivian Deuschl, vice president of public relations for the Ritz-Carlton.
Ritz-Carlton is also reducing operating hours for restaurants, spas and retail shops. The cutbacks allow the hotels to cut back staff as well lower bills for heating and cooling, says a spokesperson.

Other hotels have cut back spa hours by closing on Mondays. If guests want to use the spa, they are encouraged to book it during the other six days of the week. Hotel consultants say that is a common theme: cut back only those services that guests would not miss.

Bjorn Hanson, veteran industry analyst and researcher and clinical associate professor at the Preston Robert Tisch Center for Hospitality, Tourism, and Sports Management at New York University’s School of Continuing and Professional Studies., says common place cuts include less expensive soap in bathrooms to switching from flat-priced breakfast buffets to a la cart meals. He says hotels want to save money but that guests also won’t miss some amenities. “There is a heightened consumer sensitivity to items of waste,” he says. “Travelers will want to know why hotels are putting these expensive things in the room and, in effect, charging for it. ”Some hotel experts say a low priority in cutbacks is personnel -- for the obvious reasons that service is what hoteliers are selling.

The same applies to pay cuts or reduced hours. “We have made no job cuts and are honoring our commitment not only to expansion but also to our employee bonuses and health care,” says P. C. Amin, founder of Shamin Hotels in Richmond. Some hotels have cut costs by firing employees or cutting their perks or bonuses. Some hotels are also offering unpaid leave. “It would be a pity to lose good workers to difficult market situations,” says Daniel Hajjar, CEO, Layia Hospitality.” So far, we did not have to take any such drastic measures but we did encourage staff to make use of their un-utilized leave.” Some hoteliers say they are reducing costs through energy savings, which is not impacting guests. “We have gone in for preventive maintenance to fix all bedrooms with energy saving bulbs,” Hajjar says. His chain is putting timers into less frequently used areas and started a drive to control air conditioning,

And what about marketing and sales? A no-no, if at all possible, experts say. “In the current economic climate, the temptation is to cut back on marketing and promotion,” says hospitality consultant Mark Forrester. “While this may seem like a sensible course of action, it has the potential to harm your business in the long term.” “Cutting sales dollars could be a big mistake,” suggests consultant Salerno. “The problem is that reducing marketing expenses could be a death sentence for hotels in this new competitive environment.”He urges hoteliers to utilize Web sites to enhance sales and to devote part of their ad budget to the internet.

Another consultant, David M. Brudney, says hotels should not continue to spend the same amount of sales and marketing dollars and in the same manner as they did back in the fall of 2008. But he urges carefully selecting print and electronic advertising. “Hotel sales and marketing should be the very last area for cuts and downsizing,” says Brudney, a veteran hospitality sales and marketing executive. “Operators that choose to do so risk facing even greater challenges when the market turns -- and we all know that day will come.”


David Wilkening Associate Editor Hotel Interactive, Inc.

Open the Doors, and They Will Come

If you have been in the hotel business long enough, you probably remember the good ole’ days. You know, the days when we could build a new hotel, open the doors, and just sit back while guests flood in. Now you’re probably thinking, “Aren’t those days gone?” Well, I’m here to tell you they aren’t gone, but they have changed. What has changed are the doors that need to be opened. Today we need to open the doors of the businesses that will supply us with rooms. There is only one thing in our way: the “Gatekeeper.”

Lately, you may have noticed that these protectors of the doors you seek to open are not actually who you thought they were. You make your appointments, pick up a nice gift, meet them at the designated time, and give them every reason in the world that they should stay with you and not that nasty neighbor down the street. They smile, tell you how grateful they are that you stopped in, and sign your lovely piece of paperwork called the LNR. Everything is great, right? Well, maybe not. What you don’t know is that they have done the exact same thing with every other property in town. Now all you have is your beautiful LNR and shrinking market share.

If this story sounds familiar, you are not alone. It is happening to everyone and every property. I can’t tell you that I know how to stop this vicious cycle. I wish I could. I would make millions writing books about it, not writing blogs. What I can do is tell you that if this is happening to you, you may want to ask yourself if you spoke to the right person after all. What I have noticed, especially in these difficult times, is that the Gatekeeper is just that; a Gatekeeper. The gates being kept lead to the doors and those doors to these companies are the ones we are truly trying to open.

By now you are probably thinking that I tipped a bit too much of that sweet nectar know as Kentucky Bourbon. Well, I haven’t. Just ask Dave, GM at the Toledo Staybridge. He spent months trying to crack the door at Johns Manville. Or ask Jessica and Madeleine at the Erie TPS. They spent just as much time trying to land LORD. In both cases, the Gatekeepers weren’t the people they needed to talk to. They needed the financially responsible individuals who stood inside the doors. They needed the people who could force the hotel policy at the company. Once we contact the right people, we are where we want to be. Inside the door, holding a LNR that means something and garnering room nights.

So, the next time you are out making sales calls, ask yourself if you are talking with the right person; because if you open the right door, they really will come.