Archive for the ‘Nagib's Corner’ Category

Nagib’s Corner: Ironing is Gaining Steam as a Perk

Wednesday, August 5th, 2009

Hello Ladies and Gentlemen,

Follow up from my last email, this amenity is gaining steam!

For anyone who has been on the road for a business trip (all of you), you know what a drag this is to the trip.

You can offer either a steam service or light ironing at limited cost and high value.

· Shoe shines – you can offer these with the help of your housemen who will be in the building, for the most part, in the evening/graveyard. NO EXTRA COST

· Ironing – offer this over a certain time period when you can retain a room attendant to stay over for an additional couple hours or so. Or ask another to come in for a couple hours in the evening. Imagine the impact with your corporate guest!

Test it for a Mon, Tue and Wed only and see how it works.
Make it a back to work special for September for all corporate clients who have a negotiated rate with you.
If you offer a manger’s reception (which I hope many of you are), you could offer this over that period which will really get them talking!
2 HOURS @ $18-$20 max total.
Offer some free ironing to groups or at least to the group organizers as a point of differentiation.

For those who try this, please let me know your comments!

Nagib.

More hotels get the wrinkles out for guests; Ironing is gaining steam as a perk in the USA
News from LexisNexis

Gary Stoller — USA TODAY, August 4, 2009 Tuesday FIRST EDITION

Owen Mekitarian checks into a hotel almost every week and faces the same problem when he unzips his bags.

“I arrive just about every week with wrinkled clothes,” says Mekitarian, 52, a Canadian broadcast engineering consultant who frequently travels across the border to visit U.S. radio stations.

Like Mekitarian, millions of travelers can arrive at hotels each year with wrinkled clothing. Many reluctantly reach for an ironing board and iron or call the front desk for the equipment.

That’s no longer needed at Omni Hotels. In late April, it announced that its 41 North American hotels are providing free ironing for frequent-guest-program members.

Omni joins a growing number of hotels offering complimentary clothing and grooming services. Complimentary shoeshines, for instance, are increasingly common. And more hotels are letting guests use washers and dryers for free.

But simply getting the wrinkles out is often the biggest concern, and free ironing remains a rarity. Looking for hotels with free ironing, USA TODAY contacted numerous chains, and the American Hotel & Lodging Association asked its thousands of members.

Two other hotels offer the free service: the White Barn Inn in Kennebunkport, Maine, and The Jefferson, a Washington, D.C., hotel that’s scheduled to open later this month after an extensive renovation.

The White Barn may have the most guest-friendly policy in the country. Guests can have as many items as they wish washed and ironed for free, and the inn provides free shoeshines, says spokeswoman Kristin Hutton.

The Jefferson will iron one item of clothing for free per stay and provide free shoeshines.

Omni irons two items for free per stay for most members of its Select Guest frequent-stay program, which can be joined without charge at check-in.

Select Guest black-level members — those who have 11 stays or spend 20 nights annually at Omni hotels — can have as many items as they wish ironed for free.

Omni estimates that 8% to 10% of its guests a week use the service, according to Vice President Caryn Kboudi. Excluding repeat guests, the chain says it has ironed more than 1,000 shirts a week for free.

Guests at 190 Hyatt hotels who pay a higher room rate for upgraded amenities can have one shirt or blouse ironed daily per room without an extra charge. The amenities are part of the Hyatt Business Plan available at participating Hyatt Regency, Grand Hyatt and Park Hyatt hotels.

Free ironing is more prevalent at foreign hotels.

The St. Regis Punta Mita Resort, north of Mexico’s Puerto Vallarta airport, offers free ironing of two items of clothing per stay and free shoeshine and button repair.

Hotel Missoni in Edinburgh, Scotland, washes and irons for free two items of clothing daily per guest room.

Many hotel guests despise ironing clothes in their rooms.

Omni announced in June that it hired a research company to survey business travelers and found that some would rather have their teeth pulled than iron clothes.

Mekitarian, the frequent business traveler from Canada, can relate.

“I do not really know how to iron a shirt,” he says. “I hate ironing shirts so much that I would rather do just about anything else — even torture myself on the treadmill.”

Mekitarian and Michael Lake, a business traveler from Auburn, Calif., say free ironing is a “great” policy.

“Most hotel irons do not work properly, leak or stick to clothing,” says Lake, who works in the transportation safety industry and spends up to 150 nights a year in hotels.

Packing dirty clothes

Mekitarian says he carefully packs his bags to keep clothes wrinkle-free, but they still wrinkle or are wrinkled during airport security searches.

To avoid ironing, he sometimes packs his bag with dirty clothes and pays for laundry service after arriving at a hotel.

Such a charge may be avoided at an increasing number of North American hotels that offer washers and driers for free for guests who do their own laundry.

All 213 Candlewood Suites hotels and all 155 Staybridge Suites properties provide washers and dryers without charge, but guests have to bring or buy detergent.

At AKA’s eight hotels in New York City; White Plains, N.Y.; Philadelphia; Washington, D.C.; and Arlington, Va., the use of washers and dryers is free, and complimentary detergent is provided.

Washers and dryers are in every room at the chain’s hotels in Washington and New York’s Times Square.

The laundry room at AKA’s Central Park hotel has a lounge area with a flat-screen TV.

Hotels’ free clothing and grooming services appeal to many travelers.

But Marla Juliano of Birmingham, Ala., says she travels three to five days a week, and they won’t influence her hotel choice.

“If they are going to send someone home with me to wash, iron, cook and clean after a long trip,” says Juliano, a sales director for a hair care manufacturer, “now, that is a different story.”

Nagib Lakhani-RevMax Hospitality Consulting Services
O: (425)677-7866 C: (425)445-7750 F: (866)508-7866

nagib@RevenueMaxConsulting.com
4313 245th Avenue SE
Issaquah, WA 98029

Posted in Nagib's Corner, Operations, Sales & Marketing | No Comments »

Nagib’s Corner: Packaging Added Value

Thursday, July 30th, 2009

Hello Ladies and Gentlemen,

Here’s an interesting list of value added benefits to add to build excitement and distinction!

The pressure is certainly high to drive traffic into your hotels. However, while price is the easiest and quickest approach, it has no sticky factor or distinction that will give you any form of real or lingering impact.

Now VALUE is where it’s at. I’ve sent many articles on this topic and you’ve, no doubt, read much more.

Imagine:

· Corp Guest: Complimentary ironing services! Now that is such a great idea! If you’ve had to do this every time you check in, you know what a drag this is!

. Imagine if you could offer this service with one of your room attendants. Low cost, high value and you’d only have to do this for a select period in the day for basic clothing. WOW!

· Families: “Wii Are Family Package” – can you imagine using one of your meeting rooms with an LCD and large screen projecting a couple of Wii games for kids to play?? Again, WOW! What a great marketing opportunity to bring in families! Offer it for a set period every weekend or some other periodic session, include popcorn, some lemonade and you’ve got yourself a fabulous feature for families!

Some repeat ideas from my email of May 13^th – they’re just as valid now:

Happiness and Smiles:

- Value offerings for families – include

Receptions (partner with restaurants to offer some sample foods and coupons, you provide the drinks)
Certainly breakfast for families
WiFi if not already in your offering
Attraction related coupons or deals
Area retailer coupons and sale information
Car wash or interior car vacuum (you know how messy cars get when you have kids in tow!). Include service (or at least provide for access to hose and vacuum cleaners).

-Packages, Packages, Packages

Family movie with pop & popcorn - package
Attraction entry passes, where possible
F&B related deals with neighboring restaurants or your own outlets

-Note the sweet spot of $300-$400 over the two – three night stay

Package full deals so families can budget for meals and known cost
§  You have at least $150+ per day, total for, say 4 people.
§  Room, breakfast, WiFi – typically included in limited service hotels
§  Lunch: fast food coupons @ average $20 per family (they can use these coupons anytime)
§  Dinner: in house restaurant values can be strong. In absence of that option, include a certificate, preferably from a chain they can recognize the value with.
Depending on your market, and the demand over the weekend, you can price your rooms with a more comprehensive package that covers the basics – that makes you more attractive than others.

-Provide a reason for travelers to be at your location:

Use your websites: 80%+ of the traveling public starts their search on line.
Tell them why they should be at your hotel and your location: remember, people can easily drive around 2-3 hours in a radius from their home. You want to offer excitement that makes your location stand out.
Consider Pay Per Click to get higher exposure – feature your attractions in metatags and in paid search key phrases.
Newsletters – if you have a database, now’s the time to send out offers, if you haven’t already.

If any of you have ideas that have worked, please do share!

Nagib

Nagib Lakhani- RevMax Hospitality Consulting Services
O: (425)677-7866 C: (425)445-7750 F: (866)508-7866

nagib@RevenueMaxConsulting.com
4313 245th Avenue SE
Issaquah, WA 98029

Posted in Nagib's Corner, Revenue Generation, Sales & Marketing | No Comments »

Nagib’s Corner: Real Estate Strategy

Saturday, July 11th, 2009

Hello Ladies and Gentlemen,

A very interesting article and one that Chairman Robert Alter of Sunstone Hotel Investors sees as something that is going to become a more utilized move here in the United States, per the article below.

Of course, many investors, particularly family-owned enterprises, have full recourse loans and, hence, the dynamics of an option such as this pose a whole different set of issues. It is, nonetheless, likely we will see more situations such as this, especially after the summer.

Many owners are hoping for a shot in the arm from cash flows over the summer season. In the event this does not meet expectations, some hard decisions will become imperative over the fall. Lenders, it would appear, also have their challenges. Many articles have been written on the perspective from that vantage point. In many cases, working out an accommodation with the existing owner may be to the lenders advantage rather than they being transformed into a hotel operator in an environment even the best operators find an uphill battle.

Good luck to you over this season!

Nagib.

W San Diego Portending New Real Estate Strategy
Think giving the keys back on a hotel makes sense? Here’s why it may.
Friday, July 10, 2009

Glenn Haussman

bookmark this

With many sectors of the lodging business in turmoil, most specifically hotel real estate, hoteliers are being forced to make some real tough choices. And one of the most difficult is letting a hotel go into default. On the surface it seems like the antithesis of a smart business decision. But in today’ reality, letting a hotel be taken back by the bank may actually make the most fiscal sense for an ownership group.

It’s a business model some are predicting will become a trend in the next couple of years as billions of dollars in commercial mortgage backed securities (CMBS) debt becomes due. And with room rates and occupancy depressed making those payments as originally agreed up may become impossible.

So how exactly does letting a hotel slip into receivership make sense? It was a subject that came up this week at the Americas Lodging Investment Summit Summer Update, held this week in Los Angeles.

Turns out that in some instances letting the property go can actually help the health of a company that has many other solid hotel investments. So freeing yourself of a property that cannot be saved financially may be an organization’s only recourse.

The most notable company to take this route of action is Sunstone Hotel Investors, which last month decided it was a better move to let the 258-room W San Diego slip into default rather than pump in $65 million of cash to what they considered losing situation.

According to Sunstone Hotel Investors’ Chairman Robert Alter, the company is sitting on $200 million cash stockpile and owes the bank $65 million. “[We] chose not to make payments because we viewed it as sending more bad money after good. It looked like in the analysis [to us] the value was not going to reach the $65 million debt limit,” said Alter.

In addition to that property, the lodging real estate investment trust (REIT) has interests in 43 hotels comprised of 14,755 rooms primarily in the upper-upscale segment. Sunstone’s hotels are generally operated under nationally recognized brands, such as Marriott, Hilton, Hyatt, Fairmont and Starwood.

When Sunstone bought the property in 2006 for $92 million company executives expected the San Diego hotel industry to remain stable. But more supply flooded the market such as Hilton San Diego Bayfront which has 1,190 rooms and the uber upscale Se San Diego and two other Starwood branded hotels.

“There was a lot of equity initially in hotel and then income fell dramatically. New hotels opened. So that income went down dramatically,” said Alter.

According to Sunstone, the $65.0 million, fixed-rate CMBS mortgage that bears an interest rate of 6.14%. The mortgage matures January 1, 2018, and is non-recourse to the Company. Scheduled 2009 debt service on the mortgage is approximately $4.0 million. The principal amount of the mortgage equates to more than 30-times the hotel’s 2009 forecasted EBITDA, and more than $250,000 in debt per room.

With numbers like that, Sunstone representatives said they tried to work out the loan with the lender but “the special servicer has recently declined the Company’s proposed modifications,” said a press release.

Because of this, Sunstone decided to forgo last month’s debt service payment on the hotel’s mortgage.

Michael P. Levy, Managing Director with Morgan Stanley said he understand why Sunstone made such a decision and that is makes fiscal sense in this instance. “In general Sunstone has a fiduciary duty to its shareholders. You can do a lot with $200 million in capital and they thought that on a risk adjusted basis to deploy their cash elsewhere. This is something that is taking place en masse around the world,” said Levy. He also notes that more often bankruptcy and foreclosure are being used as tools to deal with the issue of committed capital and getting appropriate risk adjusted return on it. “That decision is taking place around the world today,” he said.

Michael Murphy, Head of Lodging and Leisure Capital Markets with First Fidelity Companies said the move will also free up more cash very month to also be utilized elsewhere. “Now they can clean up their balance sheet. Its axiomatically better and [they] saved [themselves] $2 million in cash flow,” said Murphy.

Alter sees this as something that is going to become a more utilized move here in the United States.

“When you can’t engage a servicer in a conversation, what else can you do? I believe by taking that action you set up the rest of industry to be put on notice. There was a lot of non recourse debt out there and people will look at the facts and decide how to proceed,” said Alter.

Credit

Glenn Haussman
Editor in Chief
Hotel Interactive, Inc.

Bio: Glenn Haussman is Hotel Interactive’s Editor In Chief, where he manages all editorial content for the hotel industry’s leading online information resource. Here he creates unique and in-depth content that stimulates and educates the publication’s … more

Nagib Lakhani - RevMax Hospitality Consulting Services
O: (425)677-7866 C: (425)445-7750 F: (866)508-7866

nagib@RevenueMaxConsulting.com

4313 245th Avenue SE

Issaquah, WA 98029

Posted in Finance, Nagib's Corner | No Comments »

Nagib’s Corner: Showing Gratitude

Sunday, June 28th, 2009

We have all been on an aircraft where the flight attendant thanks you from rote memory and function, little or no genuine intention or gratitude included.

As for many retail stores – there is rarely even an attempt at false gratitude.

Now this would be a great story to share with your team – wouldn’t it be remarkable for us to realize the source of our paychecks be demonstrative in gratitude that this generosity deserves?

There have been a number of articles lately that have spoken of brands making a real effort to ‘Get Down to The Basics’ of service. The article below highlights a simple, humanistic and resonating way to connect, in one person’s perspective. There are many other ways that may be more comfortable to your team that will lead to comparable impact.

· Eye contact (10 yard rule) with a smile and a ‘thank you’.

· Offers to assist in simple tasks – baggage, phone numbers, restaurant reservations, etc, etc

· Use of courtesy words – these automatically force a certain level of personal connection and humility. ‘May I please …, Would you like me to …, It would be a pleasure …., I would appreciate that …,’ etc.

· Ask your teams what would be a genuine statement of gratitude for them – many Y Gens will have a different perspective of what that means than the Baby Boomers.

Nagib Lakhani, RevMax Hospitality Consulting Services

O: (425)677-7866 C: (425)445-7750 F: (866)508-7866

nagib@RevenueMaxConsulting.com
4313 245th Avenue SE
Issaquah, WA 98029

Posted in Nagib's Corner | No Comments »

Nagib’s Corner: Cornell Study on Rates

Thursday, June 25th, 2009

Hello Ladies and Gentlemen,

Below is an interesting study from Cornell. It has, essentially, the same results as a study they conducted earlier showing that maintaining rates resulted in higher RevPAR performance levels.

Whilst this is obviously the case based on a very large sample, the challenge is that it does go counter to intuition. However, a critically important component, in my opinion, is to be very acutely aware of your immediate surroundings and the response that your comp set has chosen to take. That, coupled with knowing who your guest is, will always allow you to make a highly informed decision about the responses that work in your location.

· A corporate client, for the limited service segment, is likely to respond more favorably to the added service levels and familiarity you can offer rather than sacrifice that for a minor differential in rate. That means knowing them to deliver on this promise.

· A leisure client, in a similar segment, will likely be more swayed by a package that makes the experience more meaningful and memorable than a slight differential in rate (which is less apparent when bundled anyway).

Thank you.

Nagib.

Cornell Study Finds that Lower Hotel Prices Cost Hotels Money in Good Times and Bad

Contact: Glenn Withiam, 607.255.3025, grw4@cornell.edu

Ithaca, NY, June 24, 2009 – When close competitors cut their prices, the temptation for hotel operators is to follow with reductions of their own. While that strategy may increase occupancy, it reduces revenue per average room (RevPAR), when compared to a hotel’s competitive group. This is the key finding of a new study from Cornell’s Center for Hospitality Research, “Competitive Pricing in Uncertain Times,” by Cathy A. Enz, Linda Canina, and Mark Lomanno. The study is available at no charge from the center at http://www.hotelschool.cornell.edu/research/chr/pubs/reports/2009.html.

“Our goal was to compare the effects of pricing strategies among close competitors, first during a weak economy and then during boom times,” said Enz, who is the Louis G. Schaeneman, Jr. Professor of Innovation and Dynamic Management at the School of Hotel Administration. “Using the database provided by STR, we were able to analyze relative pricing, occupancy, and RevPAR in over 67,000 hotel observations, from 2001 through 2007.”

“Our findings were consistent, despite the economic situation,” explained Canina, an associate professor at Cornell. “Hotels that maintained average daily rates above those of their direct competitors experienced lower occupancies compared to those other hotels, but they recorded higher relative RevPARs. This was true in all market segments.”

Added Lomanno, who is president of STR: “Our overall results suggest that the best way to have better revenue performance than your competitors is to maintain higher average rates.” Lomanno pointed out that the researchers were careful to analyze only comparable hotels in each competitive group. Most hotels that charged relatively lower rates than their competitors had relatively higher occupancy, but that did not mean stronger RevPARs.

Thanks to the support of the Center for Hospitality Research partners listed below, all publications posted on the center’s website are available free of charge, atwww.chr.cornell.edu.

About The Center for Hospitality Research
A unit of the Cornell School of Hotel Administration, The Center for Hospitality Research (CHR) sponsors research designed to improve practices in the hospitality industry. Under the lead of the center’s 77 corporate affiliates, experienced scholars work closely with business executives to discover new insights into strategic, managerial and operating practices. The center also publishes the award-winning hospitality journal, the Cornell Hospitality Quarterly. To learn more about the center and its projects, visit www.chr.cornell.edu.

Nagib Lakhani RevMax Hospitality Consulting Services
O: (425)677-7866 C: (425)445-7750 F: (866)508-7866

nagib@RevenueMaxConsulting.com
4313 245th Avenue SE

Issaquah, WA 98029

Posted in Nagib's Corner, Revenue Generation, Sales & Marketing | No Comments »

Nagib’s Corner: Hotel Industry posts record revenue in 2008, other metrics slide

Wednesday, June 24th, 2009

Some interesting key facts from the statistics below:

Full Service GOP:
·         2008: 34.3%
·         2007: 34.4%
o    Pretty good, all things considered!
Limited Service GOP:
·         2008: 51.2%
·         2007: 55.4%
o    A little worse than full service but pretty respectable, overall.
All things considered, this was not as bad as we may have anticipated. After all, 2007 was amongst the very best years the industry has had so the declines should not be considered precipitous or, as many of us felt, disastrous when viewed from the perspective of the entire year.

What did, however, contribute to the perception of ‘falling off the cliff’ was the following reality (from the article below):

The decrease in room revenue during the last four months of 2008 was US$1.7 billion when compared with the final four months of 2007. As a result, the total profit loss in the U.S. hotel industry in 2008 was US$2.0 billion, which illustrates that the room revenue loss post-Labor Day was essentially pure profit loss.

Hope this will help you reflect over the year with a more ‘perspective’ and less ‘depressive’ memory. More importantly, I hope your hotels did not experience results worse than those ‘averages’ listed above.

Take care

Nagib.

Hotel Industry posts record revenue in 2008, other metrics slide
Date: 2009-06-23

The U.S. hotel industry average daily rate reached a record high, ending 2008 at US$106.55, but Pre-Tax Income Profits for the year were down 7.9 percent to US$25.8 billion, according to STR’s Hotel Operating Statistics (HOST) Study.
According to the HOST Study, the hotel industry generated US$140.6 billion in room revenue, a 0.9-percent increase from 2007. However, the ongoing economic slowdown affected the hotel industry considerably. The decrease in room revenue during the last four months of 2008 was US$1.7 billion when compared with the final four months of 2007. As a result, the total profit loss in the U.S. hotel industry in 2008 was US$2.0 billion, which illustrates that the room revenue loss post-Labor Day was essentially pure profit loss. The Gross Operational Profit (GOP) percent as a percentage of revenue was 38.2 percent of the total revenue.

‘The hotel industry was hit hard by the decreases in leisure and business demand,’ said Mark Lomanno, president of STR. ‘Unfortunately we will be operating in an environment of declining demand and increasing room supply for a while, which will put additional pressures on room rates and profits. We just have to remember that this is a cyclical industry, and things are expected to get better towards the end of 2009. But, operators need to watch their cost structure and continue to maximize ADR where ever possible.’

The study included results from more than 5,800 hotels, the most participants ever to contribute to the HOST Study.

Other highlights of the HOST Study:

• Full-service hotels reported an average occupancy rate of 67.4 percent and ADR of US$164.31 in 2008, compared with 2007 when occupancy was 70.0 percent and ADR was US$166.69.

• Full-service hotels’ GOP in 2008 was 34.3 percent, compared with 34.4 percent in 2007. The GOP was equivalent to about US$21,972 per available room.

• The study showed the bigger the full-service hotel, the better the occupancy. Full-service hotels with more than 500 rooms reported an occupancy rate of 71.3 percent compared to hotels with under 150 rooms, which reported an occupancy rate of 63.5 percent.

• Among the limited-service hotels, the Middle Atlantic region had the highest occupancy rate (72.3 percent) and the highest ADR (US$147.50) among the geographic regions for the year.

• Limited-service hotels’ GOP in 2008 was 51.2 percent (compared with 55.4 percent in 2007), which amounts to US$12,842 per available room.

• Limited-service hotels’ Income from Fixed Charges (Gross Operating Profit after deducting franchise and management fees) was US$47.65 per occupied room night-up from US$84.15 in 2007. That represents US$11,406 per available room.

The HOST Study is the most extensive and definitive database on the U.S. hotel industry revenues and expenses. The study includes operating statements from more than 5,800 hotels. HOST contains information on hotel revenues and expenses, as well as presents information by department including rooms, food & beverage, marketing, utility costs, property and maintenance, administrative & general, and selected fixed charges. HOST is available in electronic, PDF or excel files, or printed versions. For more information and details about HOST e-mail ideas@smithtravelresearch.com.

About STR & STR Global
For more than 20 years, Smith Travel Research has been the recognized leader for lodging industry benchmarking and research. Smith Travel Research and STR Global offer monthly, weekly, and daily STAR benchmarking reports to more than 36,000 hotel clients, representing nearly 5 million rooms worldwide. STR is headquartered in Hendersonville, Tenn., and STR Global is based in London. For more information, visit www.smithtravelresearch.com or www.strglobal.com.

This article comes from Hotel News Resource
http://www.hotelnewsresource.com

The URL for this story is:
http://www.hotelnewsresource.com/article39541.html
Nagib Lakhani
RevMax Hospitality Consulting Services
O: (425)677-7866
C: (425)445-7750
F: (866)508-7866
nagib@RevenueMaxConsulting.com
4313 245th Avenue SE
Issaquah, WA 98029

Posted in Finance, Industry News, Nagib's Corner, Revenue Generation, Sales & Marketing | No Comments »

Nagib’s Corner: Internet Generated Reservations

Tuesday, June 16th, 2009

Hello Ladies and Gentlemen,

Interesting statistics on the current online travel habits of vacationers. Certainly, this is highly sensitive information for us as we manage our various channels.

· 66 percent of leisure travelers now use the Internet to plan some aspect of their travel (versus 35 percent in 2000): this is a statistic that has variation depending on which survey you refer to. High, no matter which one and growing.

· Website of online travel agency
(Expedia, Travelocity)                                                  31 percent
Search engine (Google, Yahoo, MSN)                           26 percent
Website of specific hotel chain                                     21 percent

. With the rankings clearly identified, you should take close stock of the OTA listings for your hotels – how are they showing up? Have you got key sell phrases clearly visible? Are you taking advantage of package discounts for multiple stays, participating in packaging with air, especially on your slower days?

. Search engines – this has a lot to do with your website management, PPC, etc, etc. Much info on this over past several email newsletters. If organic searches are not getting you high enough, get some advice on PPC. It has some great advantages.

. Brand.com specific sites: images, images – real important in getting that ‘sticky factor’. Does you brand offer landing pages? Can you click through to other sections of your site from the main page? Do they offer any custom search words (some brands do)? Have you listed all the amenities around your hotel, even within an hour’s drive?

Some brands are now offering you a direct click from the brand.com to your own site, provided you comply with their guidelines (same look and feel as the brand.com). Ask the question – what do you gain by doing this? If you have them on the brand.com, and you can make that effective, what is the benefit of having them be able to click to your own site? You want your own site to be as varied and reflective of your character and area features as you can make it. You will direct them to the brand.com to book anyway so they can see that. If you have them at brand.com, you already have them so is the trade off between flexibility with your own site worth it for getting the two-way?

Take care!

Computer-assisted travel picks up

While the percentage of leisure travelers who report making reservations online has grown more than 37 percent since the year 2000, “Consumers’ search behavior has changed in recent years as people have become more familiar with search technology and the number of travel planning/purchasing sites has grown exponentially,” said Peter C. Yesawich, chairman and CEO of Ypartnership.

monitor According to the latest National Travel Monitor, 66 percent of leisure travelers now use the Internet to plan some aspect of their travel (versus 35 percent in 2000), while 56 percent now report making reservations online. The nationally representative survey of 1,590 active travelers was conducted during the months of February and March 2009 and is co-authored annually by Ypartnership and Yankelovich.

Travelers visit search engines such as Google, Yahoo or MSN first when considering vacation destination alternatives. The websites of specific countries or destination boards are visited next, followed by online travel agencies such as Expedia and Travelocity. Only 1 percent of travelers commence their search for a vacation destination by visiting a blog:

Visit first when selecting a destination

Search engine (Google, Yahoo, MSN) 34 percent
Website of national tourist office/CVB 23 percent
Online travel agency like Expedia, Travelocity 22 percent
Website of hotel chain 8 percent
Web site of individual hotel or resort 7 percent
Blog 1 percent

Search patterns for selecting airline or lodging accommodations are understandably different. Consumers who are searching for these travel services first visit the websites of online travel agencies. Brand-specific sites follow closely when leisure travelers are selecting an airline, yet significantly less so when they select lodging. Meta search engines that compare fares are visited first by just over 1-out-of-10 travelers when selecting an airline:

Visit first when selecting an airline
Website of online travel agency
(Expedia, Travelocity) 42 percent
Website of specific airline 41 percent
Meta search engine that compares fares 13 percent

Visit first when selecting hotel/resort
Website of online travel agency
(Expedia, Travelocity) 31 percent
Search engine (Google, Yahoo, MSN) 26 percent
Website of specific hotel chain 21 percent
Website of individual hotel/resort 10 percent
Meta search engine that compares rates 5 percent

For further information on the National Travel Monitor, please visit the publications section of www.ypartnership.com.

Source: 2009 National Travel Monitor, Ypartnership and Yankelovich

Nagib Lakhani RevMax Hospitality Consulting Services
O: (425)677-7866 C: (425)445-7750 F: (866)508-7866

nagib@RevenueMaxConsulting.com

4313 245th Avenue SE
Issaquah, WA 98029

Posted in Nagib's Corner, Revenue Generation, Sales & Marketing | No Comments »

Nagib’s Corner: The Best $73 I ever Spent

Monday, June 15th, 2009

Hello Ladies and Gentlemen,

A truly do-able function with higher returns than other functions we may spend our time at. From the founder of Joie de Vivre Hotels.

As we work our way through his environment, it is the commitment of those who lift the load for us that will allow us to emerge on the other side with a minimal of bruising.

A simple technique I learnt from a veteran commenting on how little effort we spend on appreciating and thanking our teams:

Place 10 pennies in one pocket at the start of the day.

Every time you appreciate a team member, transfer one of those pennies to the other pocket.

Make sure you transfer all 10 by the end of the day. Surely you come across at least ten occasions to be grateful to someone on your team.

If you don’t, then you don’t have the right team!

Enjoy the day!

Nagib.

The best $73 I ever spent

By Chip Conley, HWN Contributor

Originally printed on The Huffington Post, Joie de Vivre Hospitality founder Chip Conley shares his beliefs on how to manage and properly treat employees

Close your eyes for a moment and consider the collection of bosses you’ve had since you joined the workforce. I remember my first boss, Mac, when I suffered through six weeks at the fries and shake workstation of McDonald’s. He helped me understand that “boss” was a four-letter word and spelled backward it’s what I felt like doing when I came home from work each day (SOB also is how I described Mac to my friends).

Chip Conley

But, I also remember Larry Keating, who mentored me with great patience and wisdom in my summer internship between college and business school. Larry helped me realize I had more ability than I thought I did so I could accomplish more than I thought I would.

My hotel company, Joie de Vivre, has a more than 10-year tradition of celebrating “Employee Recognition Week” just as we’re going into our busy summer season. We started this tradition as a means of helping our maids, bellmen, bartenders and managers realize that we truly appreciated how much life they gave to our enterprise. While we initially were thrifty with our expenses during this week, with time our generosity grew to include tickets to theme parks, baseball games or cruises on the bay.

More recently, we spent nearly $100,000 on these various recognition-week activities, which may sound lavish. But when you realize this is only about $35 per employee (or about $1 per hour that each of our employees worked that week), you come to realize the good feelings that are generated about our company culture are probably worth it. Heck, you could spend $100,000 in legal fees in California just settling one wrongful termination suit of an employee who didn’t feel properly recognized.

While employee recognition week may be a wise investment, this year we don’t have the cash to invest, and we’ve had to make cutbacks. Sound familiar? Does that mean we can’t recognize our people? Compensation is a right, but recognition is a gift. What gift could I give my staff that would be as meaningful as what Larry Keating gave me that summer 27 years ago?

Yesterday, I decided to write each of the 80 people who work in our headquarters a handwritten, heart-felt thank you card. For less than a dollar per card and about six hours of my time, I could give the ultimate gift that we all are looking for. Cancel your round of golf this weekend and plant yourself in your favorite chair watching the NBA Finals and pen some thankful prose to those who work for you. As William James once wrote, “The deepest hunger in humans is the desire to be appreciated.” I don’t know about you, but I’ve saved cards that old high school flames wrote me as well as those employees have written me over the years. The power of genuine, customized appreciation will never lose its value—even in a gloomy economy … in fact, it’s probably what we’re all thirsty for in this desert of a depression.

The Gallup organization found that the single most important variable in employee productivity and loyalty is not the pay, the perks or the benefits. It’s the quality of the relationship between employees and their supervisors. Isn’t it ironic that pay, perks and benefits all cost your company at the bottom line but authentic recognition, especially when it’s most unexpected, costs very little and gives the most impressive return on investment? The $73 I spent on those cards was the best investment I’ll make in 2009.

Chip Conley is founder of Joie de Vivre Hospitality. To read more of his thoughts, visit www.chipconley.com/musings/

Nagib Lakhani RevMax Hospitality Consulting Services
O: (425)677-7866 C: (425)445-7750 F: (866)508-7866

nagib@RevenueMaxConsulting.com
4313 245th Avenue SE
Issaquah, WA 98029

Posted in Leadership, Nagib's Corner, Operations, Uncategorized | No Comments »

Nagib’s Corner: Should You Care if Your Employees Love You.

Thursday, June 11th, 2009

Roberta Chinsky Matuson is the author of this article. Some very wise words to be mindful of in our daily interactions with other managers.

Highlights added by me.

As human beings, we have a natural tendency to want to be loved. But what happens when your desire to be loved interferes with your ability to lead? People who gravitate toward leadership roles tend to be charismatic. They work hard at keeping their audiences captivated and enjoy the adoration they receive from their followers. This is all fine and good, until their desire to be liked, or even loved, begins to cloud their judgment. Here are some examples of how this can play out:

Colleagues rather than subordinates

In their quest to be liked, leaders drop their guards and become more informal with their employees than they should be. An example of this is when a leader joins his staff at Happy Hour. There is nothing wrong with sharing a beer with the team. However, things can quickly get out of hand when one beer leads to a six-pack. Before you know it, managers are sharing drinking stories from their college days. Throw in a few shots of tequila, and all bets are off.

To effectively lead, your followers must have a high regard for you. Sure, they may look up to you all evening, but will they still respect you in the morning?

Communicating versus commiserating

It is lonely at the top. There are few people who you can confide in regarding your hopes and fears. It can happen to the best of leaders - eventually they stop communicating and start commiserating with their executive team and sometimes with staff.

In these trying times, your team is looking for a leader. Someone who they are confident will be able to steer their ship through these choppy waters. The last thing they need to hear is a leader expressing doubt. If you find that you need a sounding board, consider hiring an executive coach or joining an association. Then be sure you return to the business of communicating the information employees need to hear, so when you turn around, you actually have people following you.

Are you doing too much for your employees?

Are you constantly picking up the slack for members of your team who are not cutting it? When doing so, do you take the time to explain how they can improve their performance? Or do you simply decide it is easier to do things yourself to avoid more conflict?

Conflict fuels improved performance and innovation. It can also strengthen relationships when both parties have an opportunity to have their say. Think about your own personal relationships - do you have more respect and adoration for those who are willing to call you on your actions, or for those that avoid conflict?

It is nice to be loved, but as a leader, it is more important to be respected.

Roberta Chinsky Matuson is the President of Human Resource Solutions (www.yourhrexperts.com) and has been helping companies align their people assets with their business goals. She is considered an expert in generational workforce issues. Roberta publishes a monthly newsletter ‘HR Matters’ http://www.yourhrexperts.com/hrjoin.cgi which is jammed with resources, articles and tips to help companies navigate through sticky and complicated HR workforce issues. Click here to read her new blog on Generation Integration. She can be reached at 413-582-1840 or Roberta@yourhrexperts.com.

This article comes from Hotel News Resource
http://www.hotelnewsresource.com

Nagib Lakhani
RevMax Hospitality Consulting Services

O: (425)677-7866
C: (425)445-7750

F: (866)508-7866

nagib@RevenueMaxConsulting.com
4313 245th Avenue SE
Issaquah, WA 98029

Posted in Leadership, Nagib's Corner | No Comments »

Nagib’s Corner: Travel Trends

Wednesday, June 3rd, 2009

Below is a message from Indiana Office of Tourism Development Director – it’s a summary of the keynote speaker, Peter Ypartnership.

There are numerous very critical points raised in this. I have taken the liberty of highlighting some points of particular interest.

Ask the question:

How has your property responded to each of the highlighted trends?

We know what the guest is looking for, how they are behaving. Are we ready to respond in the most appropriate fashion?

If you wish to focus on any of the particular areas identified, please do call.

Take care

Nagib

Director’s E-mail: Summer Travel Trends
Amy Vaughan, Indiana Office of Tourism Development

Dear Tourism Partners,

As we prepare for Indiana’s summer travel season, many of us are re-examining our marketing strategies due to the slowdown in the economy. Moreover, we know that travelers in the current environment are motivated by a value message.

At the recent Indiana Cultural Tourism Conference, keynote speaker Peter Yesawich, Ypartnership Chairman, offered some insights into today’s tourism marketing environment. In particular, he noted that technology, social values and demography are reshaping the world of tourism.

Today, value is king. He said that anxiety about an uncertain future continues to be an issue but people are still traveling. They are very motivated by value and want to know exactly how much the entire trip will cost before they leave home.

In particular, he recommended “bundling” or packaging travel product. He noted:
· 87% book packages to save money
· 84% spend less overall today
· 64% comparison shop online
· 51% stay fewer nights

According to Yesawich, people continue to trade down but not out. He said that four-star and five-star hotels have seen the biggest drop in occupancy. He also emphasized the increased importance of customer service. He said travelers’ tolerance for things going wrong is zero.

Changing Environment
Yesawich noted how quickly things began to change. He said that generally, 2008 was not too bad until September. He said that revenue for the lodging industry has been particularly weak in 2009. He stated that content had been the most important factor on a web site until now. Today, consumers want content and the ability to compare prices.

Use of the Internet

· 70% of households have access to the internet today

· 59% of households go online first/only when planning travel

Most Important Web Site Features

· 88% of travelers want to check fares/rates themselves

· 81% of travelers want the ability to book their travel online

· Overall, no one wants to overpay

Technology Trends

· 72% of travelers are uncomfortable with behavioral targeting

· One out of five travelers go to blogs for opinions

· Four out of ten consumers regularly read reviews on TripAdvisor.com (which Expedia owns)

New Behavioral Trends

· Consumers want to reconnect with what’s important in life (this is similar to behavior after 9/11)

· There is a renewed interest in spending time with family. 71% of parents wish their family spent more time together.

· 38% of travelers want to travel with their children.

· Multigenerational travel is on the rise. 38% of grandparents want to travel with their grandchildren.

· There is a change in buyer psychology. Today, price is as important as the destination. People are willing to change their destination for more value.

· Time poverty has grown as a factor. Four in ten travelers say they don’t have enough time.

It’s All about Convenience

· The speed vacation is on the rise - hurry up and relax.

· Six of 10 people think that life has become too complicated.

· 47% say they don’t have enough vacation time.

Not All Vacations Are Created Equal

· Milestone anniversary and birthday trips are planned further in advance, have a longer stay, have higher spending and have more people.

· 70% of leisure travelers have taken a vacation for a special occasion.

· Disney offers travelers free admission on their birthday.

Are People Still Traveling?

· 65% of US households are planning a trip in the next six months.

· Four nights is the length of the typical U.S. vacation

As we move into summer, I think it is important to note that we are seeing some positive indicators. In May, consumer confidence rose to 54.9, up considerably from 40.8 in April. Consumers appear much more hopeful about the future which could help the economy. Hopefully, we will see this positive outlook continue to gain momentum.

Thanks to all of you for everything that you do for Indiana’s tourism industry. Best wishes for a strong tourism season!

Sincerely,
AV-Signature2
Amy Vaughan

Nagib Lakhani
RevMax Hospitality Consulting Services
O: (425)677-7866 C: (425)445-7750 F: (866)508-7866
nagib@RevenueMaxConsulting.com|
4313 245th Avenue SE
Issaquah, WA 98029

Posted in Nagib's Corner, Sales & Marketing | No Comments »

Logo

Archive for the ‘Nagib's Corner’ Category

Nagib’s Corner: Ironing is Gaining Steam as a Perk

Nagib’s Corner: Packaging Added Value

Nagib’s Corner: Real Estate Strategy

Nagib’s Corner: Showing Gratitude

Nagib’s Corner: Cornell Study on Rates

Cornell Study Finds that Lower Hotel Prices Cost Hotels Money in Good Times and Bad

Nagib’s Corner: Hotel Industry posts record revenue in 2008, other metrics slide

Nagib’s Corner: Internet Generated Reservations

Computer-assisted travel picks up

Nagib’s Corner: The Best $73 I ever Spent

The best $73 I ever spent

Nagib’s Corner: Should You Care if Your Employees Love You.

Nagib’s Corner: Travel Trends

Recent Posts

Categories

Archives

RSS Feeds