Podcasting Fun

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Just in time for Christmas...indieHotelier Podcast is on the air.

Well, actually it's been in beta since late November with now three programs released to date.

Before you go take a spin, let's get a few things straight.

1. I do this for fun. That 's it. I'm not hoping or looking for any sort of monetization. Call it my public service. And, it's the closest I'll probably come to my teenage dream of being a broadcaster/DJ.
2. It's and experiment...like most everything else I do. We'll all see where it leads.
3. It's constantly evolving...which requires lots and lots of feedback, and patience on both our parts.

The last two shows including the one released this evening are Christmas Shows...so, there's lots of Christmas music, and not much discussion. I hope you'll enjoy the variety and non-traditional nature of the independent music I play.

Enjoy the show!

The Cost Of Promoting Average

The cost of promoting something average is extremely high. So high in fact, that many don’t make it. Getting someone to notice you by slapping on some marketing doesn’t work anymore…there are just too many average hotels to choose from. How much do you think that run-of-the-mill, roadside, chain hotel spends on advertising, franchise agreements and contracted discount business just to stay alive? How much does your local Hilton or Marriott spend? A bunch…I bet. In the mid-90’s, I managed a property like these and shelled out almost $500K each year to shout the message that we were better than our neighbor. Wow.

On the other hand, how do you explain that little guys like Smith Fork Ranch, Inn at Little Washington and Twin Farms run full almost every night and spend virtually nothing on marketing?

Here’s how…the marketing is built-in.

1. They’re remarkable...the experience is meaningful and extraordinary. It makes people feel good.
2. They’re easy to talk about…they have an interesting story that’s easy to remember and fun to tell.
3. They cater only to one audience…they don’t try to convince people who wouldn’t be interested in their experience.

Being successful has very little to do with how much advertising you can buy or how much flash you can afford to put on your website. It has a lot to do with how much you invest in the experience. Please think about that if you decide to build a hotel.

More Mooing

Another takeaway from the Big Moo…

From page 165…

If the race goes to the swift, not the large, then this is good news for anyone who’s not listed on the Fortune 500. The race is getting faster, and clueless big companies continue to miss the boat.

Access to assets is no longer the key to success. The will to implement is.


And, a relevant excerpt from my upcoming article “vanished”…

Smaller groups and smaller environments usually foster better teamwork and more effective communication. That simply leads to more adaptive and better service.

Smaller is better in almost every case…at least for the customer. So, if you have a big company, break it down onto more manageable parts. Otherwise, you’re probably going to get out hustled by the little guy at some point.

Do You Have Any Telephone Revenue Left?

Things are moving right along, aren't they...

LONDON, England (CNN) -- Tech-savvy business travelers are forcing a rethink on how hotels charge for long-distance communications, meaning that exorbitant phone bills on the road could soon be a thing of the past.

The advent of the cell phone has already had an impact on hotel call charges with most guests preferring to use their mobiles rather than clock up charges on their room rate.

But for international travelers, huge roaming costs or incompatible networks mean they may have no choice but to reach for the receiver in their room.

Now, with more hotels wiring up to provide in-room broadband Internet access, guests are able to plug into cheap -- or even free -- phone calls using a principle known as voice over Internet protocol, or VoIP.

The rest of the story

Can you say, Skype me!

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Discipline

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When tasked with opening a new property and spreading the word, it’s easy to get into a frenzy about media coverage…taking and enjoying anything that comes your way. I mean, who wouldn’t be happy with just about any insertion as long as it didn’t show up in some tabloid. Well, it turns out, Tony wouldn’t. And, he’s absolutely right. Here’s a link to Tony’s story thanks to Doug, who gives us many great thoughts over at Imagine.

You need to be more like Tony, disciplined enough to recognize your audience, focusing your energy, creativity and passion on serving them, and only them. Media placements, whether paid or non, require the same discipline and a very targeted approach. Sometimes, as in Tony’s case, that means not accepting any. For most, however, it means resisting the temptation to use the “take anything” approach. If you do that, you’re likely wasting money chasing the wrong folks to come to your party.

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Setting People Up

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Are you setting people up to win…or to fail?

If you’re in control of a property, department or shift, you need to think about this.

Are you fostering an environment of creativity, passion and energy? Do you really listen to people and thank them for their ideas? Do you give credit for mistakes? Do you care about their dreams…do you even know what they are?

Or, do you hope no one disturbs the flow of things? Do you wish people would just show-up, shut-up and “do their job”? Do you hope that everything just goes according to plan?

If you aren’t living and working in the first section, you are doing yourself, your staff and the organization a huge disservice. You are setting them up to fail.

You’re primary responsibility as a leader is to set people up to win. If you do that well, the rest of the plan has a chance.

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Genius

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Genius_bar


This from page 88 of The Big Moo in describing Apple’s Genius Bar concept…

Apple creates the chance for an intimate, powerful conversation. The stores are not just profitable, they are extraordinarily effective ambassadors…
This is a very rich and significant idea, especially in our so called “people” business. So, as you finalize your marketing plan for next year…change it. Reduce the ad and direct mail budget by at least 50% and spend more money and time getting to know your customers…and their friends. Don’t just send sales people to trade shows. Get some (or all) of your key leaders involved. Host exclusive parties for your best clients…offer to do it in their homes!

Find ways to start conversations.

Advertising Relevance

Here’s the biggest problem I have with advertising…it’s not relevant, at least not the vast majority of the time.

During last week’s episode of Lost (I made the mistake of watching on ABC vs. downloading), I saw three coffee related ads (Senseo and Folgers both promoting imitation cappuccino machines…and someone else I can’t remember). Does coffee have anything to do with a bunch of castaways trying to solve mysteries and figure out personal problems? At least you could show coffee ads in the morning. Or, better yet, sell me coffee machines when I’m on-line buying coffee or some other directly related product.

The reason you’re not going to get that relevance on ABC or any other network is simple. They’re business model isn’t set-up to be relevant. It’s designed to shove things down your throat hoping a small percentage of you are paying attention…and that you swallow. Seems like an asinine way to do business, almost communistic. But, historically, it’s worked…at the customer’s expense.

There are two forces at work which are changing all of that. Choices…almost every product and service is now moving toward serving a niche vs. the masses. And, user initiated (and directed) media channels…the internet, blogs, podcasts, vcasts, etc. put the attentive power in the proper hands…the guests’ hands. The result is that every day more and more people are making their buying decisions based on something other than advertising, especially the “shove it down your throat when you’re not interested” variety. Instead, they seek-out and tune-in to people and places they believe are credible and have their best interest in mind…people like family, friends and travel agents…places like blogs, podcasts and newsletters. More and more, people are tuning out the interruptions and turning their attention to more objective and relevant sources of information.

As hoteliers, we notoriously lag behind other industries when it comes to embracing, accepting and utilizing new ways to do business. That needs to change, and rather quickly. If you’re Marriott, you can probably afford to be a bit slow. If you’re an independent or a small brand, you don’t have the time or money to see what everyone else is going to do.

The do’s…

Use advertising only in places where it’s relevant to the conversation already taking place…travel websites, travel blogs and travel newsletters come to mind first. A backseat, but sometimes effective, play is in newspaper/magazine travel sections. The key is to use advertising in places where the reader/listener has a high probability of being focused on you. And, use advertising to remind people about you…not to introduce yourself. Leave that to trusted sources, so they believe what they’re hearing.

Better yet, spend as much time and energy creating a remarkable experience for your guests. Then, the spreading the word part tends to take care of itself mainly through word of mouth and editorial campaigns.

If you’re going to advertise, I recommend a Google Adwords campaign. First, unless you’ve been living in a cave, you know Google is the leading on-line source for information. And, second, they’ve designed an approach which is completely based on the “relevance” factor. If you’re property is at all dependant on search engine traffic (not always the case…that’s another post), you need to give this a try.

The don’ts…

Don’t buy random ad campaigns…in glossy “A” pubs, on TV or in newspapers. It’s a waste of money and time. The only people who will try to convince you otherwise are the ad agencies, media sales people and the VP of Marketing who has half of his budget tied-up in advertising. Spend that money in more important and effective places, like your people.

Don’t try to be all things to all people, especially in advertising. Again, stay focused on a niche and communicate through relevant media.

Don’t try to convince people that they should like you through your advertising. If you’re great, you won’t need to. The word will get around.

If by the end of 2006 you’re still holding on to the old school tactics of interruption to spread the word about your place…2007 will be a long year.

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Reading The Press Only Through Blogs

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Of course, the blog concept is more relevant to Chris than the "mainstream" population (He's the editor of Wired). But, this is an excellent point (courtesy of PSFK) which illustrates where things are headed.

Get on the train...or watch it go by.

Chris Anderson, editor of Wired Mag, writes about how, with the exception of the Sunday New York Times, he reads the press through the editorial of blogs. He monitors which press articles are being written about by bloggers and this helps his judgement on what to click through to and read in the mainstream media:

"If there's something relevant to my interests in the Wall Street Journal, the daily NYT or some other news site, I assume one of the blogs I read will point me to it. This is not to say that I don't value mainstream media; I do. It's just that I'd rather choose my own editor to select the articles of highest importance to me (including those the mainstream media choose not to cover at all, or just not well). In this case that "editor" is a network of bloggers, not whomever decides what makes it to the front page of the newspaper. This works so well that I suspect I'm actually reading more articles from mainstream media, and from a broader range of it, than ever before."

Anderson also provides a link to the 150 RSS Feeds he monitors each day. If you're dismissive of the power of blogs, think again.

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Defense vs. Offense

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How much time do you spend on defense? On filling out reports, dealing with guest complaints, responding to e-mails, the day-to-day stuff?

Now, how much time do you spend on offense? Thinking about remarkability and what it’s going to take to change you and your business in order to survive next year, or in five years?

I bet the ratio heavily favors the defense. Do the analysis just for a day or a week…and do the math. The problem is…great defenses only win games in sports.

Happy Thanksgiving! Go Broncos.

Thought inspired by pages 27-28 of the Big Moo

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To Think Or Not To Think

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I apologize in advance…this is a long one.

I’ve often proposed that you should employ “thinkers” to ensure your organization moves forward. While I stand behind that theory steadfast, I admit I’ve seen some disastrous situations unfold as a result of under trained or improperly placed individuals. Or, worse, great people were placed in stifling environments, eventually conditioned to keep their ideas to themselves. In either case, I’ve seen things go into the crapper just the same. So, what to do?

Stick with thinkers…and fix your approach.

There are two basic ways to go about doing business when you have employees:

The easiest and still the most common method (because there are so many models to duplicate) is to adopt “old school” command and control tactics and set-up a working environment perfectly designed to serve one cause…protect the company’s financial well being. Put a number of people in charge, hire a bunch of drones, create as many rules, SOP’s and procedures to be sure no one steps out of line and beat it in to employees to “do good for the company and we all win”. This may sound extreme and far fetched. Or, it may sound eerily familiar. How do you know? Your workplace is average, your product is average, your price is average, the guy sitting next to you is average. No one takes risks, no one argues or debates, no one puts forth crazy ideas. No hail mary’s, not even a reverse. No one is having any fun. Everyone does just enough to get by.

If you set-up your company or department this way…for people to just get by, that’s exactly what will happen. They will perform just well enough to keep their jobs. And, you as a leader and your organization will be average in the process. Ask GM, American Airlines, any major bank or the less than stellar sandwich shop down the street.

On the other hand, you could try something different. You could take a few chances and set-up your company to be really great…for everyone.

Passionate, imaginative, creative people have a natural tendency to prosper and to be successful. And, they want to be with others just like them. They don’t want to be average. And, they certainly don’t want to fail. All you have to do is get a core of these folks on your team, put them into a position to win and get out of their way. The rest will take care of itself.

Getting them on the bus…

Hiring these sorts of people takes guts, patience, compassion…and money. It means you’ll pay more than everyone else and care for them like your children. And, you’ll listen, even if you know their ideas are wrong.

Winning…

Having winners on your team is only half the battle of winning. Put the right person in the wrong position or give them responsibility they can’t handle (no training and/or no tools) and the game’s over before you get started. The key is to put people in the right seat on the bus (thanks for the analogy Jim Collins), train the mechanics until they become second nature and set-up just enough rules to keep people out of trouble and to free their minds to “think”. You don’t want them thinking how to complete the report. You want them thinking about how to best serve people. Yes, mistakes will be made, sometimes costly. But, it’s a small price to pay for fabulous ideas, exceptional service and blowing the doors off your competition.

Keep winning…

Finally, it’s vitally important to keep the winning, thinking culture alive if you’re going to sustain success for the company and for everyone involved. Remember, remarkable people want to be a part of something important and they want to prosper. So, give it to them. Reward them for thinking differently, for taking a chance…even for making a mistake. When something works, give them stock, bonuses…and genuine appreciation. When something doesn’t work, give them credit for trying, be nice…and listen to the next idea. Then, talk about avoiding the mistake in the future.

To win, failure must be accepted and even encouraged if the end result is better than the missteps along the way. A great leader has the foresight to embrace that concept ahead of time.

Technology Paradox

Gadgets are great. Technology is wonderful. It certainly makes my life easier and more enjoyable (most days). And, it helps hotel guests too. A recent NY Times article (thanks Alex for the pointer) explains how technology is making people feel more “at home” and how we hoteliers are able to “adapt” to our guests more seamlessly.

But, be careful…these things have a tendency to get out of hand. Look at check-in kiosks for example. These well hyped devices are anything but personal. They aren’t friendly or caring. And, they can’t tell you where to find a good meal after 10 PM.

There’s a fine line between technology that serves the hotel owner (higher efficiency and productivity, lower labor costs, etc.) and that which enhances the guest stay. Clearly, we have a big responsibility to look at this carefully.

The bottom line…guests like to feel special and cared for. And, while technology can and will do a lot to help that along, only people (emotional, passionate and “take a chance” people) can deliver what guests want most. Please don’t make the mistake of replacing that with a robot.