To Charge Or Not To Charge

Recently, there has been considerable discussion both on-line and in print about mandatory service charges. The most recent and highest profile writing took place in yesterday’s USA Today. Read the full story.

 

I was interviewed for that article and weighed-in with the following thoughts:

 

I believe all of this comes down to (or certainly should be) about the guest. If the hotel/restaurant is providing a superior experience and adopting a gratuity/service charge policy in order to make it more convenient for the guest, it’s a good thing. In the end, your customer will let you know if they “feel” good about it, or not. The important thing is to listen and show them that you care.

 

I think most of the “negativity” and public commentary is based on a combination of three factors: 1. we don’t like change, and; 2. we don’t provide a consistently superior experience; and, 3. most of the places implementing such fees aren’t clearly stating “why” they do it, and/or “what” happens with the money. As a result, there’s a perception that these fees are for the convenience of the business and not about them. I think we can all agree that we have become generally guarded and skeptical of business practices, especially when it comes to pricing and surcharges.

 

As hoteliers, anytime we make a guest policy change, we run the risk of not pleasing someone. Hopefully, there’s minimal fall-out if we’ve done our homework and made decisions based first on our customers. When there is a problem (as is evidenced by the increasing discussion about the subject issue), the key is to respond well to those individuals and adapt (change) when enough of our patrons tell us to do so. Those that don’t…well, we know who they were looking out for in the first place.

 

What do you think?

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More on PR

I recently found myself in an interesting e-mail discussion with a friend of mine (who happens to run a very nice hotel here in Colorado) about the merits of hiring a PR firm, and, more specifically, how you value their effort.

 

Here’s an excerpt of from my side of the conversation:

 

“Basically, I am of the mindset that if you’re good enough, you’ll get attention…and editorials. A PR person’s value is not in their ability to “sell” the idea, but in the relationships they have with key media types, especially ones that trust them. If they can pick-up the phone and get the editor in chief of Travel and Leisure to come to lunch and listen to a story, that has value. If they are just going to write press releases and send them to their mailing list, that’s BS.”

 

The days of mass mailing news releases are gone. So, if that’s a big part of the PR plan (or even a small one), you need help. PR, like most other relationships, is about trust and the ability to get heard…not so much about salesmanship. Your PR firm should not be focused on how to spin and pitch the story. Again, if your experience is truly good enough, that’s not necessary (if it’s not, well, that’s another story). More importantly, they should be offering you a list of people who they know will listen to your story. If the list doesn’t include the media you’re looking for, find a new firm or an alternate way of reaching those contacts.

 
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ELO

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Elo

Why did a band like ELO become so popular and with such velocity when rock ‘n roll had already been around for so many years?

Because they weren’t playing rock ‘n roll as we knew it…they started something new. The Electric Light Orchestra added strings and a true “orchestra” experience for their performances. They had a new story and very unique design by way of both sound and stage presence. This experience had never been heard or seen before. They were the only ones doing it…and were quite good at it based on record sales. That’s what made them so hugely popular, so quickly.

Eventually, the “newness” and resulting success faded as other interesting acts came along, i.e., Queen, David Bowie, etc. They could no longer attract new fans with the same experience…it wasn’t remarkable anymore. And, there were too many other choices.

Occasionally, we need to change in order to keep ourselves interesting and attractive. It’s not good enough to rely on past successes, no matter how good they were. Being remarkable means coming up with something new as often as it is necessary. And, these days, with such short customer attention spans, that’s a much more frequent occurrence.

I’m sure you can think of other remarkable artists who had a great run. Some changed along the way to keep attracting new fans. Others had a short, but very successful go of it. Here’s a short list that comes to mind:

Jerry Garcia (the one who inspired us to be The One and Only)
Queen
Pink Floyd
Ray Charles
Harry Connick, Jr.
Dire Straits
David Bowie
The Rolling Stones
The Beatles
Elvis
The Kinks

Etc, etc.

In Case You Missed Them

Tool Box

I'm working on putting the final touches on a number of Excel spreadsheets which I will load into the Toolbox.

 

As time is always of the essence, I'd like your help in determining what's the most important. Here's a partial list:

 

  • Pre-opening Budget
  • Staffing Guide
  • Project Development Worksheets and Ten Year Proforma (includes a break-even schedule)
  • Revenue Management: various RM tools including a group profitability evaluator

 

Please let me know what you would like completed first?

 

Thanks in advance for the feedback.

 

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Few Words

Mooney


As pilots, we’re taught (no, it’s drilled into our heads) to use as few words as possible to communicate. You say only what you need to say and specifically to whom you need to say it. There’s no room for idle chit chat, especially during sensitive operations like take-off and landing, and during peak periods in congested airspace. More words means more distractions which inevitably leads to mistakes, and sometimes worse.

The same concept should apply in marketing, especially as the “noise” factor has never been higher. Keep it simple, to the point and aimed at the right audience. All written communications (proposals, press releases, brochures, etc.) should incorporate more design and fewer words. Websites should have fewer pages and be clutter free with more images and less test. And, if you must speak, ask more questions…and listen.

Enough said.

Employee Care

 

Working in a small environment, I am fortunate to see and talk with all of our staff every day. However, in a larger property, senior management often loses sight of the people who really run the hotel. We get bogged down in administrative tasks, meetings, reports, client lunches, etc. And if you add guest contact to the mix, employees can end-up feeling left out.

 

Try this…

 

Once a day, at a minimum, go out and nurture your relationship with your staff. But, here’s the key. When you walk around, you can’t have your own agenda. No inspections, no why is this out of place, no catch-up on previous issues. You need to convey genuine interest in the employee. You need to let them talk to you about what they want to talk about…nothing else. It might be the weather, their kids, or even personal problems. Your job is to listen and appreciate whatever it is they convey to you. If you catch-on that they are trying to tell you stuff they think you want to hear, ask them questions about something else. Leave “your agenda” at the office.

 

Each time you do this, you’ll find the staff will open-up more and more as your relationship becomes more genuine and not just “the boss is here looking at stuff again”.

 

It worked for me. I hope it does for you as well.

 

Feedback

I just received this from Network Solutions.

Our records indicate that you contacted Network Solutions customer service on 08/12/2005.

Network Solutions is fully committed to improving the service we provide to you. As part of our ongoing dedication to quality customer support, we are conducting a Customer Service Survey.

We want to know what you think - your opinion is extremely valuable to us! The survey will take less than 10 minutes to complete, and your input will provide us with insights into how we can improve our service to best meet your needs. The information collected from this survey will be reviewed and acted upon at every level of our company.

To access the survey, simply click on the link below or cut and paste it into the address field of your browser.

Generally, I’m pretty happy with these people. But, about every fourth time I talk with them, I get one of these in my in box. There are two reasons they should stop doing this…1. It’s annoying! Especially, since I didn’t mention I had a problem. 2. They don’t need to spend the money to review ten minute surveys to determine if they’re doing well.

One simple question will do…Will you refer us to others? Or, better yet, have you referred us to others? If I say “no”, then ask me why. Otherwise, leave me alone, and focus your attention on the people I referred.

The true measurement of guest satisfaction is the willingness to refer you to other people. That’s it. Not much else matters. If the answer is “yes”, you’re doing well, probably really well. If the answer is “no”, dig deeper.

Is Your Story Interesting?

Spreading the word isn’t that difficult…if you have something interesting to spread. Telling the story about a great experience isn’t that hard because you don’t have to make things up to make it sound good. The part that’s remarkable stands on its own, strikes a chord with your audience which in turn compels them to give it a try. Ancillary hype is confusing, risks making the story boring and is pretty much meaningless.

The best products and services sell themselves because they are in and of themselves remarkable, and therefore make an emotional connection with a particular audience. We usually start the “spin” cycle and add ”fluff” when A.) we’re not good enough, and/or B.) we’re trying to get more customers without adding more experience, i.e., reach a bigger audience.

Here’s my point….

A.) Pick what you can be the best at, and put as many resources into that as possible.
B.) Make sure the story you tell (website, press releases, brochure, signage, etc.) is concise, interesting and targeted to your prospective guest.

Knowing what to say and how to say it is important. Knowing when to shut up is sometimes more important.

Here’s a non-hospitality angle on the subject (thanks to Seth Godin for the pointer):

Killer Features

Hotel Opening Checklist

Okay, the "functional" version of the Hotel Opening Checklist is now available for a nominal one-time fee at my website, or by clicking the link in the side bar. Or, you can still download and print the PDF version for free here. I'll leave the price low ($395 is a steal even if you just consider the time it would take to retype the list into some project software) for a couple of months until I get some feedback on its application. Then, after any adjustments, a new version will be released at a higher price.

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Paths

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Fork_in_the_road_2


Every action, interaction and even non-action with a customer leads down one of two paths, one which builds a relationship or one which erodes one. There is no in-between or middle road. You either make the customer feel good, appreciated and important…or, you don’t. Some of that has to do with choosing the right audience. But, most of it relates to service and how you handle people. So, with only two choices, this business of serving guests seems relatively straightforward...focus your energy on going down the high road of building long lasting relationships and do everything possible to stay off the alternative pathway.

But, we all know it’s not that simple. Too often, we get distracted. We lose focus on what’s most important and get caught-up in the daily grind. We focus more on what’s important to us, and less on what’s important to our guests. We worry about how we feel. We worry about “being right”. We worry about making quarterly earnings, about making our boss happy or about getting home on-time. And, while all of these things are important to us, sometimes very important, they don’t at all matter to our customer. The guest doesn’t care how we feel, if our boss is happy or if we can make our next lease payment. They only care how they feel.

Every time we focus on ourselves and our problems, we start going down the wrong path. We feel better..and our customers don’t. To some degree, this is inevitable. After all, we’re human. But, if we recognize this weakness and ensure that enough emphasis is placed on countering the tendency, especially at the most critical moments, we’ll win. And, so will our customers.

Next time you’re faced with a customer complaint, staffing crunch, or an overbooking situation, think about the customer relationship, and what will happen to that relationship with your next move. Next time you plan an advertising campaign, sales blitz or telemarketing attack, think twice about how it feels to be on the other end.

You’re at the fork in the road every day. Think carefully about which path to take.

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Walsenburg

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Walsenburg_sign


The town of Walsenburg needs a story. Located in Central Colorado at the junction of Highway 160 and Interstate 25, it has long been just a place where you change travel direction.

Now, the townsfolk want to get some (or, more likely, a lot) of the current traffic that passes through...to stop. So, they’ve banded together (as this article points out) to change the exterior of the buildings to give them a more inviting feel. They’re focused on changing the appearance of the streetscape and storefronts to catch people’s eye, hoping that they’ll pull over for a closer look. Now, that’s a good first step. But, rarely does design alone, even if it’s quite remarkable, provide enough of an “experience” to get people to pay attention for long. And, some new stucco certainly won’t compel anyone to tell their friends how wonderful the town has become. People are looking for more than just a unique façade. They want something meaningful and different..something with a story. They want something that’s not only worth stopping for, but interesting enough to go out of the way for.

Cleaning up Walsenburg and giving it a facelift will definitely drive some incremental business and make it nicer for the folks that live there. But, the initial spike probably won’t last, and it certainly won’t result in a wholesale change in the economy. In order to make a long-term impact and change the economic landscape, they need to set their sites on and invest in the experience itself, not just the look, but the feel. They need to use the collective energy that’s now in motion to figure out what they can be the best and how to spread the word about it.

Here’s a place that’s way out of the way yet still managed to build quite a following over the years. I don’t think Joe Atkinson achieved that with a building.

Incidentally, my intention is not to single out Walsenburg. There are plenty of cities, big and small, who have done a lot worse in the area of “economic development”. At least the folks in this little town are trying to do something about it.

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What To Be When You Grow Up

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Astronaut


My friend Chris, top dog at Magellan Strategy Group, knows a lot about tourism and marketing…more than me. So, I’m always happy to see something from him in my in-box. Recently, he sent me a copy of an interview with Al Ries (an even more famous marketing guru) about hotel branding in which the point is made that many hospitality brands are “muddy” and unclear resulting in market confusion and sub par performance. He goes on to say that you need to focus on “owning a word in the customer’s mind”, a la Volvo, “safe car”. According to Ries, at the end of the day, that simple strategy is what branding is all about.

Similarly, one of Chris’ seven C’s of branding (I must confess that I don’t know them all) is “clarity”. I think what Chris and Al are talking about is the single most important concept in starting anything new, especially a business. I call it knowing what you want to be before you grow up. In other words, “how” and “what” do you want your guests to feel when they experience your service. Failure to develop this mantra and a plan to support it at the very beginning is one of the most fundamental and unfortunately one of the most common mistakes made when starting a new venture. Hotels are often developed on the auspices of serving all types of guests, doing it better than someone else and at a better price. You see it all the time, hotels lacking a clear identity, trying to serve multiple audiences with numerous pitches and product offerings. You see PR companies spinning stories which lack focus and have very little to do with the “real” experience. You hear sales people telling clients anything they can think of to get them to sign a contract. In the end, these mixed signals just create confusion, a lack of trust and less revenue.

Instead, be very clear to yourself, your colleagues and your prospective guest. Start by developing something you’re passionate about and that you can be the best at. Create an image that’s very clear and “in focus” for everyone. Then, stick to that idea and support it at every turn with everything you do. If there are enough guests who want to feel the same way you do, you’ll have a winner. If not, you’ll have an expensive hobby.

No matter what you do, decide what you want to be before you get started. There’s way too much at stake to make wholesale changes along the way.

More Hotels Try Fewer Sheet Changes

It looks like the tipping point is fast approaching (or, already come and gone) for this idea...at least with the chains. More on the story from USA Today.

No matter the reasoning and company line, some people aren't going to like it. So, if you're sticking to your daily laundry plan (I suspect many at the upscale and luxury level will), this leaves an opportunity for you to strengthen your relationship with those "minority" customers.

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Andrew Harper...Stories and Trust

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If you’re in the hotel business, especially as an independent, you probably know of Andrew Harper. If not, you should, and can learn more about him here.

A recent review of Keyah Grande reminded me of his influence in the travel industry and what we can learn from successful people like him.

Harper’s business is about stories and trust. He sells stories about his travel experiences to people who trust him. Here’s why he’s so successful at it:

1. People trust him because he doesn’t accept anything in return (cash or in kind) from the properties he writes about.

2. His true identity has remained almost completely anonymous for the past twenty-five years. In essence, he can be completely objective…and that’s worth a lot these days.

3. He’s honest, giving you the bad along with the good in his reviews.

In fact, his model works so well that he limits his newsletter subscription list to 25,000. That, of course, makes it exclusive and the information within even more valuable. Over the years, he has used his honesty and the trust of his client base to further develop his business along other lines. He’s a pretty smart cookie.

There are some lessons to be learned from Mr. Harper…

1. One of the most valuable assets you can own is your customers’ trust. Whatever you do, remain honest and never take advantage of your position.

2. Stories sell when you have the attention of the right audience. Use relationships to get attention and use great stories to keep people interested.

As a hotelier, if you can get a positive review for your property, it’s a huge credibility builder with your prospective guests as well as the media, travel agents and just about anyone else who will have anything to do with you. So, how do you get a review…start with a remarkable experience and get someone he trusts to give him a call.

Good luck.

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Boutique

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Pool_party


My friend, Chris Cavanaugh at Magellan Strategy Group, just sent me this link (subscription required) to a WSJ story about boutique hotels. In a nutshell, the article paints a picture that boutique owners and operators face a dilemma in serving multiple audiences in their properties. The subject hotels like the Hollywood Roosevelt, Mercer (NYC) and Gansevoort (NYC) have become popular hang-outs for celeb gawking clientele interested more in “being seen” and alcohol consumption than a “hotel” experience. Of course, that strategy (and, it is a planned approach) is bound to annoy those that are looking for a quiet respite along the lines of a more traditional hotel stay as is clearly indicated by the complaint accounts documented in the story.

This brings out a couple of thoughts. Number one, not all boutique properties have this concern. Most are not catering to the “hip and loud” crowd. Boutique is often a misunderstood term, especially in the world of hotels. Here’s Merriam-Webster’s definition of the word boutique: a small company that offers highly specialized services. To me, that doesn’t necessarily mean pool parties and crowded bars. On the contrary, I think it’s better to say that boutique properties are characterized as small, uniquely designed with a mix of traditional and non-traditional services making you feel special.

Number two, these particular properties (and many others) are trying to spin and sell too many stories. That gets very confusing to those of us paying the bill. You can’t be all things to all people. If you’re going to be the hip, loud, pool frenzy kind of place in downtown Hollywood, then don’t sell rooms to people looking for a quiet weekend getaway. Of course, some of the blame probably falls on the guest. If the hotel has a clear reputation for being one thing, and you’re looking for another…don’t go! Usually, it’s the property though that’s to blame for sending mixed signals of some sort.

You’ll do better to find your niche, design everything about the place (product, service, people, PR, etc.) to support that identity and let your guests take care of the rest.
I think Mr. Klein of The Argyle Hotel makes an excellent point at the conclusion of the article… "Word of mouth is the buzz I want, but not by creating a fake scene. Consumers will be fooled by that for a couple months, but eventually you need to deliver good service, good food and good beds -- and you just can't mask it with ridiculousness."

Attention

You’re opening a new property, launching a new restaurant or perhaps just changing an existing one up a bit. In any case, you need to get people interested…you need attention.

First, start with something that’s genuine and remarkable. That’s more than half the battle. If it’s remarkable to more than a handful of people, you’ll get interest. If it’s real, it’ll last.

Then, to speed up the attention getting process, use relationships and trust. There are no shortcuts and no substitutions to this approach, unless you have a whole bunch of cash and time which most of us don’t. If your PR firm is any good, they’ll use relationships to get the right people to your door. If they’re not, they’ll send out batches of press releases and media kits to lists of editors which anyone can buy. If your sales team is on top of it, they’ll use the trust they’ve developed with past clients to get them to listen to the story about your new place. If they’re not, they’ll order up cold calling campaigns and “sales blitzes” which are largely ineffective and a tell tale sign that you are working with an inexperienced group. Worse yet, someone will try to convince you that a well financed advertising and media plan will get people in the door pronto. This is the ultimate con in our business. Build an average project, buy a bunch of advertising and people will come…and like it. Give me a break. I’ve never seen this work, ever. And when someone tells me it does, it’s usually easy to illustrate that it wasn’t the ad campaign at all…more likely it was design, care and the story which got people’s attention and compelled them to spread the word. The ads just made some marketer feel good.

Again, there are no shortcuts. Memorable experiences, just like great ideas, take time to spread. So, start early, way early…Rome wasn’t built in a day.

Stupid

There's no other way to describe this brain lapse by Hilton...charging astronomical fees to use their business center while offering in-room internet for free.

Either give it away for free or charge a nominal $5/day to cover your costs. But, instead they use the "nickel and dime" approach which yields far less revenue and pisses off their best customers.

Thanks to Church of The Customer for the lead.

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Stories Through Process

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People love what goes on behind the scenes…they love process. Biltmore Estate makes part of its keep from its “behind the scenes” tours. People visit the Boeing factory to see how airplanes are made. More and more, people are interested in “how” and “why” something happens. Anything that enriches our understanding of “the experience” makes it that much more meaningful. Cocktails and meals taste better when we can see them come to life. That’s why bars and exhibition kitchens are so popular. Wine seems to taste so much better when we get to taste it at the winery with the wine master explaining the intricacies of the fermentation and aging process with every sip.

Creating stories through process is an extremely powerful tool, especially in the F&B side of our business. Let’s face it, it’s much more interesting to tour the kitchen and learn about new ingredients than to tour the hotel laundry and see some soap in a washing machine (yes, I know, big ironers and folders are pretty cool to watch). Hells Kitchen, Iron Chef and the Food Network didn’t pop-up by accident. People like food, and they like the art of creating it even more.

I’ve been at Keyah Grande for about eight months. And, with very few exceptions, our kitchen and the Chefs are the highlight of our guests’ stay. It helps that we have an open kitchen policy (come in anytime to learn and raid the fridge for leftovers) and that Aki and Alex are so passionate about their trade. But, it’s the combination of intrigue, the possibility of learning and our openness and informality that draws people in to explore the process of cooking. In any case, it makes for some very memorable experiences which lead to a lot of storytelling…a relatively inexpensive way to spread the word.

So, the next time you’re racking your brain about how to add value to your guest’s stay, try opening the kitchen door.