The INNside Story By Ryan J. Sorensen Copyright 2013 by Lodgistic Solutions, LLC Smashwords Edition The field of hospitality has been around for a long, long time. From the moments of first human interaction, the seeds of communication, sympathy and compassion were planted in the hearts of man. Being a gracious host was a mentality which existed long before the dawn of modern hotel-dom. As civilizations grew and developed, the need for overnight lodging accommodations grew with it. Modest, ancient inns and primeval resorts have given way to our complex hospitality society of small bed and breakfasts, budget motels, mega resorts, lavish boutique hotels and everything in between. With so much competition and so much at stake, it is imperative that hotel operators stay ahead of the curve, just so they stay afloat. In recent years, we have experienced rapid changes in consumer and shareholder demand which have forced our business into an ever-changing flux. Today the pressure on managers to lead their market and meet given budget restraints seems almost unfeasible. Unfortunately, there is not a one size fits all success formula. Why? Every property, every market, and every customer is different. It is not my intent to give a treatise on RevPAR indices or profound sales prospecting techniques. Rather, I will devote the following text to three basic and fundamentally crucial creeds. This is written primarily for those new hoteliers who are seeking to build their careers on solid ground. For those reading with advanced experience, I hope this will prove a beneficial refresher course. At first these principles will seem basic and obvious. You are right, they are. But if given a closer examination, you will discover that a refreshing waterfall of wisdom can be had by applying these simple tenets of our trade. Now let us examine three primary principles of successful hotel management: Be Hospitable Our trade had humble beginnings as simple places of rest and nourishment. The earliest innkeepers were individuals who took great pride in caring for weary travelers. Webster’s Dictionary defines hospitable as “given to generous and cordial reception of guests, or offering a pleasant or sustaining environment.” Early innkeepers were obviously concerned about filling their rooms, but RevPAR and food costs were probably not in the forefront of their minds. Their main objective was to be hospitable. Today we have more competition, as well as complex laws and advanced technology, yet our purpose remains the same… to be hospitable. All too often, managers are caught up in the daily grind of accounting and maid minutes, ADR and breakfast costs. One would do well to slow down and remember the important duty of innkeepers. Being hospitable is more than a slogan; it is a way of life. Everything you do and everything you say, every single day, should be centered on satisfying your guests. The gifted educator, Henrietta Mears once said, “Hospitality should have no other nature than love.” I propose that those who ultimately succeed in hospitality careers are those who have genuine love and compassion for people. Those solely seeking a profit will most likely not see long term accomplishment. In order to stay grounded in hospitality, it is important to schedule time in your day to spend with your guests. Take time to walk your property and socialize! Meal periods are a great time to converse with your guests about their plans and experiences. Show them you care and let them know they are appreciated! Use the time during busy check-in periods to talk with guests who may be waiting in line, and tell them about your hotel. Give them your extension number and tell them to call you should they need anything. For an extra special touch, call the guest you spoke with after they check in and find out if their room meets their expectations. From the interactions with your guests, you can find out where they are from, where they are going, and why they chose to stay with you. These precious moments will pay rich dividends for not only your guests, but also for you. This information can be useful in not only determining your target guest, but more importantly, you can use this information to “wow” your guests with special touches. For example, if you find out a father and son are in town to watch a baseball game, you could give them directions to the stadium, hints on parking, and maybe even a little team paraphernalia. Every guest wants to feel they are receiving special attention, and that attention is easy to give, once you invest the time to get to know them. When interacting with your guests, make them feel comfortable. There are two simple, yet critical ways to do this. Smile, and use their name. You will be shocked what a difference those two small mannerisms can make! An anonymous author once wrote, “Smiling is very contagious, you catch it like a flu; because when I see you smile, it makes me smile too.” Combine smiling with the respect shown by using a guest’s name, and you will see a difference in how the guest treats you and your staff. The late great Dale Carnegie said, “When dealing with people, let us remember we are not dealing with creatures of logic. We are dealing with creatures of emotion, creatures bristling with prejudices and motivated by pride and vanity.” It is imperative we understand that this observation applies to those on both sides of the front desk. What may seem logical to your associates may not seem so logical to your guests. Most hotels have standard operating procedures which outline the desired course of action for various circumstances. However, as the wise Carnegie pointed out, we are dealing with emotional creatures who crave personalized attention. All policies and procedures should allow the flexibility necessary to please and appease unique situations. Given the fact that we deal with emotional creatures, being hospitable isn’t always easy. We will all have to deal with the irate guest with whom there appears to be no pleasing. In the hospitality industry, we need to be keenly aware of sensitive situations at our properties, and how far one should go to ensure guest satisfaction. Once flexible guidelines are established, make sure your line level associates are equipped with the resources they need to satisfy your guests. When dealing with guests who have issues, a wise manager will listen to their concerns and be able to sort through the words and understand the source of their problem. Every reasonable opportunity to satisfy a guest should be seized. After all, it is usually the hotels with the best service that dominate the market. Be cautious when dealing with guest compensation, because hotels that “give away the house” will almost always end up “losing the house”. This transitions us into the second principle….Be Profitable. Be Profitable It is an undisputable fact that businesses that don’t make money won’t be in business for long. Hotels are no different. Profitability is the bottom line figure which shows the financial success and stability of a hotel. Unfortunately, there is no one sure way to profitability. One could fill volumes with different methods and tactics which have provided positive results in certain scenarios. The point of this chapter is to provide three rudiments that can be applied across the board to help provide a firm financial foundation. Step one is to budget effectively. Every year, usually around the end of summer, hotel owners and managers come together to establish forecasts and budgets for the following year. From an ownership perspective, they want to see good improvement percentages on their investment. From a management perspective, they want to see challenging but attainable goals. Managers have the front line experience with their properties and need to be prepared to discuss the budget in an optimistic and realistic manner. A wise manager will be prepared with hard data and reasons for their suggestions. Thoroughly compare actual numbers year over year in order to understand long term trends. Step two is to create and follow through with a plan. Make sure you discuss the coming years’ budget with the appropriate department heads. Discuss fixed and variable costs so they understand the importance of managing expenses wisely. The use of a checkbook or some form of an expense tracker is highly recommended. I propose it is better to “manage” your expenses, instead of always focusing on “cutting” them. Cutting expenses to unreasonable levels will prove to ownership that you can live with those low numbers and future budgets will be reflective. Be frugal, but not foolish when managing variable expenses. Budgets are usually only done once a year, but forecasting should be done monthly and even weekly or daily in some markets. This allows you to keep track of your pace and make adjustments when necessary. Step three is to focus on sales. Sales departments are directly commissioned in the selling and marketing of the hotel. In smaller properties, that responsibility may rest solely with the General Manager. Wise salespeople understand their target customers, and closely monitor their competitive set to prey on potential business. Most sales people are goal-oriented, so use plenty of visual progress tracking methods to urge them onward. Help them capitalize on the amenities or services that set you apart from your competition. Remember, most guests are looking for the best value; not necessarily the best price. Those involved in sales should use a market analytic report such as the STAR produced by Smith Travel Research wherever financially feasible. This report provides a measuring stick for the market, and reveals if you are receiving your fair share. Remember also, that your front desk personnel are the best salespeople at your property. Make sure they are being effective in driving occupancy and maximizing rates. In attempting the former, be careful not to drastically lower your rates. On the other hand, in an attempt to push ADR, be careful not to turn people away and thus lower your occupancy. Keep your focus on RevPAR (Revenue per available room), which is the balance of occupancy and rate. Revenue management is a critical science and expenses dedicated to that cause are well worth the investment. Being profitable is thereby the end result of effective budgeting, creating and following through on plans and actions and superb sales efforts. Those efforts will show forth in statistics such as GOP (Gross Operating Profit), CPOR (Cost Per Occupied Room), Net Income and Flow Through. Be Adaptive The third and final principle is to be adaptive. Adaptive to what? It is hard to say because we do not know the challenges and opportunities that lay ahead. With that being said, being adaptive is an attitude. It is an attitude in which a manager or owner is humble enough to acknowledge and apply a new or better process or procedure. It takes courage to step ahead and take calculated risks to set yourself apart from your competition. At the speed in which technology is advancing, new and exciting advances and opportunities will always be coming our way. Remember principle #2, and don’t always jump on board with every new product because you run the risk of being unprofitable! New products become old news quickly, so carefully study the feasibility and long term financial stability of new technology you would like to invest in. Darwin once said, “It’s not the strongest species that survive, nor the most intelligent, but the most responsive to change.” I would suggest it is usually better to act than to react to changes in the wind. Along those lines Jimmy Dean also said, “I can’t change the direction of the wind, but I can adjust my sails to always reach my destination.” Stay up to date on trends and market studies. Your local Chamber of Commerce and Tourism Bureau are great resources that stay in the know about changes in your local markets. Take advantage of them! There are also plenty of hotel management magazines and websites which monitor the hospitality industry from a regional, national and global view, and they consistently publish reviews and analysis of current trends. These resources and your own observations will help you guide your property down the path of prosperity. In conclusion, let’s consider the principles discussed and fasten them together. A hospitality professional who truly strives to be hospitable is going to establish a genuine caring culture of respect and appreciation which will resonate through the organization. This culture of pure hospitality will surely create loyalty to the property. That loyalty will be rewarded with improved occupancy and rate percentages and thereby more profitability. In order for those gains to continue, a successful leader will remain adaptive to changes in demand, technology or market forces. These proven principles will provide groundwork whereupon you can build your business and achieve your dreams. The future is brilliant and our industry resilient. Prosperity belongs to the humble servant of his fellow man. . converse with your guests about their plans and experiences. Show them you care and let them know they are appreciated! Use the time during busy check-in. tell them about your hotel. Give them your extension number and tell them to call you should they need anything. For an extra special touch, call the guest