,

Rubber Stamping

,

Woodstamp

I just read this interesting post by Seth Godin about a dialogue he had with a resort marketer. She had asked him to help convince her bosses to lower room prices to facilitate company growth. He, of course, countered with the why don't you raise prices and be remarkable approach. It sounds like she didn't take that too well.

As you know by now, I'm not a proponent of the cheap route either. In fact, in almost every case, I'm adamently opposed. Discounting implies that you get less. So, unless you're actually offering less or something inferior to other choices, don't reduce the price. It's a long, slippery slope...in the wrong direction. On the other hand, like Seth points out, if you're "built" for cheap, that's different. Marriott, Hampton Inn, Motel 6 to name a few...are built on the premise of lowest price for the product in their respective segments. And, they've done well with it. Do you really think you can compete with engines like these when bringing your new "lowest price" hotel to their markets? Most probably not.

I actually took away another point from Seth and Anna's conversation. You can't convince someone to change their mind about something if they don't want to believe that there may be a different way to do it. From what I can gather, Anna and her bosses didn't want a different idea, they didn't want a remarkable consultant's honest viewpoint...they wanted someone else (preferrably someone credible) to tell them exactly what they wanted to hear...to rubber stamp their solution.

Consultants face this issue time and time again...and are faced with a brand defining choice. Do you play along and collect a fee? Or, do you take the risk of upsetting the apple cart, and stand for what you believe...to tell people the truth and what you think will solve their problem. The choice made will determine who you are and who you end up serving in the long run.

There are plenty of Anna's out there, enough to make a rather fine living. But, from my experience, working for them is frustrating and certainly more boring than for someone who actually wants to hear what you have to say.

Each time I'm faced with this "rubber stamping" scenario I ask myself these questions...Do I want to be known as someone who seeks alternatives, proposes non-traditional solutions and is willing to take some risks? Do I want to share the risk with my client to take some chances, and to create something really different? Or, do I want to spend hours creating justification for a solution I really don't believe in just to get a paycheck. Right now, I can still afford to do the former...I hope that never changes.

, , ,

aloft

, , ,

Aloftsunflower Gc3lobbytexturing_1

Starwood is getting smarter...

By now, you've probably heard about one of their newest creations...aloft hotels. If you haven't, it's probably because they're not talking to you (or me for that matter). If you're not a young (25-40, someone else's definition, not mine) business traveler looking for a hip place to stay, full of around-the-clock energy (sound like a W?) and loaded with guest rooms that feel like a really cool apartment...then, you're not their type. And, that's what I mean by getting smarter. They're focusing on micro vs. macro, and on what a narrow group of people want vs. what they need. But here's the smartest part...they seem to understand their audience. They know how they live, work and play. Want to see what an aloft hotel will look like? Go to their website...but bring lots of bandwidth because it's loaded with flash. Better yet, want to see an aloft being built? Go to the blog...and go to Second Life. Haven't heard of Second Life? See what I mean...They're not interested in talking with you....

Starwood has resisted the temptation to use a traditional approach of shouting their message AT everyone. Instead, they choose the likely places where key influencers live, start conversations and get them involved in the process. Then, they let the viral, word of mouth effect take over to build interest...just in time for the real opening in 2008.

Are you spending your time and money on holding conversations with key people who want to talk with you? Or, are you doing it the old fashioned way, hoping someone will notice?

,

The Set-Up

,

Construction_sign Arrow Averagehotel

A record 1,200 people attended the Lodging Conference in Phoenix last month...and, for good reason. There's lots of good news, and it's an exciting time for our industry. Jim Butler's post on his Hotel Law Blog gives you all the details and STR slides...well done. Here are my key takeaways about the future...

  • Growth in demand will continue to outpace the growth in supply by 1.9% compared to .8% for 2006 (a difference of 1.1%), and by 1.7% to 1.6% for 2007 (a difference of only .1%)
  • Occupancy will continue to grow in 2006 and 2007 but at reduced levels of 1.1% and .1%, respectively
  • RevPAR growth will continue at near record levels in 2006 and 2007 of 7.9% and 6.7%

No matter how you dissect it, this is good news...we continue to move along a path of "recovery" from the doldrums of 2001/2002. Unfortunately, as Jim also points out, there are mitigating factors in play for the foreseeable future...high cost of construction, steep price of land and a more restrictive financing climate. And, this is where the set-up usually begins...a robust performance climate, under supply in many markets and high cost barriers to entry. The result...not necessarily an overbuilding situation. But, I think, even worse...a flood of average product. Here's a likely scenario, especially for those new to our game...

  1. People (developers) have money
  2. The numbers strongly suggest that a hotel is a good idea
  3. But, building one is expensive
  4. So let's cut some corners and save money where we can (this usually means build something efficient, something that's been tested). Let's play it safe and build something that's been proven to work.
  5. Let's build something that can make as much money as possible in the shortest period of time.

The result is predictable...an influx of unremarkable properties, built to take advantage of the short-term cycle...which might do very well while the weather remains this nice. But, what happens when things change (and, they always do)? How will the average property stack-up against those that were willing to take some risk, to be different, to spend a little more up front to give people what they want?

If you're getting into the business for the long-term, how can you afford not to build something extraordinary...something that will last?

After First

Glenn made an excellent comment to my last post pointing out that "innovation is critical to success", and therefore being first can have tremendous value. As an example, he poses a good question, "should Apple quit producing the iPod because Microsoft comes out with one that offers more?"...of course not. Innovation and improvement is natural...and more importantly, it's what we all want.

My point is that the intrinsic value of being first diminishes (sometimes evaporates completely) when something better comes along and/or when what you've introduced becomes a standard. Take complimentary internet access for example. Glenn mentions Omni for being an innovator in providing free broadband. Agreed, and we all thank them (and a few others) for paving the way. But now, that story of being the first, has very little value on its own...because people care about getting what they want (the ability to easily use their notebook away from home), not necessarily who introduced the idea a few years ago. And, as more and more hotels offer this once unique service (for free) it becomes a standard. Then, it's no longer unique or remarkable...and the incremental value is lost, unless of course you're one of the few that don't have it. that's not value...that's a problem. However, as Glenn correctly points out, the image of being an innovator, willing to try new things and to be the first to discover and deliver what people want,  is a great story...and has longlasting returns. But, I'll add that earning that label also requires repitition. What are Apple and Omni going to do next?

So, perhaps a better way to say it is this...make new and extraordinary things that people want...and do it over and over again. Just don't hang your hat on each one too long.

Read more of Glenn's great riffs on his Customer Service Experience blog.

,

First and New

,

I've never liked using "new" and "first" as my primary stories because they don't last. The new part I've covered before. The first strategy only works as long as there isn't a second, or if you can somehow preserve and own the original idea. Being first demonstrates originality and the willingness to try something new. And that has value...people like that. But, what happens when the second one comes along, and it's better, modified to give people even more of what they want? Then, being first doesn't matter anymore. Here's a list of firsts by Kimpton Hotels (yes, they actually have a list). How important is it (now) that they were the first at any of these things? I suspect that in the case of free internet access, it was pretty important for about a week.

A better approach might be to be "the only". Of course, that's a lot harder...making something that isn't likely to be duplicated, or made better, or cheaper. But, once you do it, you've got marketing built-in, up front, that's going to last...way beyond being first.   

,

Make It Personal

,

A couple of interesting posts (one about dealing with angry customers, and one about personal interation with them) from Mr. Godin which relate directly to our business. Neither is rocket science. But, I think we (hotel people) sometimes make it more complicated than it needs to be.

In the case of angry guests, we often try so hard to solve the problem, we forget to make the guest feel  better...which is not always the same thing. Empathy, compassion and understanding are what matter...not, so much the 25% discount. Your job in this situation is to be genuine and regain the guest's trust. Because, in the end, that's what matters. That's going to make the difference between someone who tells their friends how lousy you are to how well you recover...or maybe they'll just be silent (better than angry). The giving away part just brings immediacy to your actions and accelerates the healing process for some. And, as Seth points out, don't expect to win everyone back...it's not going to happen.

With regard to personal interaction...I agree, there is no more effective substitute for a handshake or a personal thank you. And, he's right, the bigger we get, the more we lose the art of personally serving our guests...before, during and after the visit. Would you rather stand in line at the front desk to check-in and out? Or, would you rather receive a personal welcome at the front door and a hand shake (better yet, a hug) when you leave?

,

Sell People What They Want

,

Workgmexample2

Joseph Jaffe posts about GM and Frito Lay's recently announced "user generated" advertising scheme for Super Bowl 2007. He makes some salient points about their upcoming experiment...the jury's out as to how well it works, if at all. However, while the whole thing seems a little more creative (and it might even end-up being entertaining), aren't they (the advertisers) missing the point? I'll pick on GM because they give you so much meat. Here's a quote from them (Chevrolet) about the campaign that makes my point...

"This is a contest that fits in well with our overall campaign for 2007," said Steve McGuire, advertising manager for Chevrolet. "We are asking the people entering to look at how we can market to a younger group, to get that audience interested in Chevy products, to ignite passion and increase the buzz about Chevy cars. We have a specific creative brief, and we will look to see how the entries match against that brief."

Read these parts again..."to get that audience interested in Chevy products"..."we have a specific creative brief".

Why do so many other people, like Joseph, understand this...but, GM can't seem to get it...instead of making cars they want or can afford to make, and then spending Billions (yes, with a capital B) annually on ads trying to convince prospective customers that thier product appeals to them, why not build a car the customer actually wants? If you want to attract younger customers (the average Chevrolet buyer is 46...hey, I think that's young), then start making cars like Mini or VW...but, different, of course.

Figure out what excites people...first. Then, see if you can deliver something that blows those people away. Not the other way around.

I'll be sure to tune in to Joseph's show, Across The Sound, where he plans to disect this further.

The Story of New

Storyofnew_1

This graph shows the power of  being new for every hotel opening. It doesn't matter which segment you're in, where you're located or how much you spent on construction. Generally, the curve is the same.

The star represents the point where new starts not to work anymore. It also marks the time when your real story kicks in...the one that gets talked about for a long time. Views are a great story...until someone has better ones. Location is a great story...until someone else is closer, or being close isn't important anymore. Trendy design is a good story...until it's old fashioned.

Great stories are emotional...so, they strike a chord with a certain audience. And, the best ones can't be duplicated. Some stories are built-in. And, some are developed over time. Your challenge is to do both, and put one into play that carries you beyond new.

Making More Average

Pagosa_springs
One of the main reasons average products fail is that they’re easy to duplicate…it’s easy to offer more choices of the same thing. So, if the numbers look right to the developer and the bank, the development of average stuff can get out of hand in a hurry. For example, take our little town of Pagosa Springs. There are a number of average hotels here. But, to me there are indications we need more rooms to satisfy the exponentially increasing visitor traffic, especially during the summer. One trip to the local grocery store in July is all the research you need to validate my hunch. I’ve heard talk about more hotels…but, there’s a problem. All of the talk is about building more of the same, likely because it can be done fast, it’s not as complicated and it’s much easier to explain to the people footing the bill. This approach is fine if you believe there’s an insatiable desire for more average hotels…and, that this desire will last a while. But, it’s dangerous if you believe people really want something better, and when you're finished, you’re one of the many average choices. It’s especially bad for the person saddled with paying the mortgage.

Your challenge in developing a new hotel (or any product or service) is to build an experience that will last. You need to anticipate what people want and will want…for a long time. Then, bring something to market that 1. satisfies those desires, and 2. is extremely difficult if not impossible to replicate…build something remarkable. Yes, it’s harder and more expensive up front. But, it pays-off later when you’re the only one giving people what they want. 

,

Small...and Fast

,

There's a lot of talk and writing going on about "small". Here's a partial list:

Seth Godin's new book, Small Is The New Big
Tom Peters' "Wallop Wal*Mart16" presentation
Michael Shuman's The Small-Mart Revolution: How Local Businesses Are Beating the Global Competition.
Bo Burlingham's Small Giants: Companies that Choose to Be Great Instead of Big

And, yes, even I wrote about it in my manifesto, Vanished.

So, a lot of smart people (even if you don't include me) are telling you to stop worrying about how big you're going to get, and refocus on how to act small...even if you're already big.

I further the theme with this idea...you've got to be fast. In fact, it's one of the greatest advantages of being small...and I think the primary reason small companies do so much better. Being fast means you can adapt to change quickly, improvise on a dime and simply outflank the big guys. Being fast means you can change an idea, a product or service to meet the desires of your customer...while you still have their attention. If you're slow, they're long gone before you figure it out...if you  ever get it at all.

If you have a big company, break it down into small, manageable pieces...and get  out of the way. If you're small, try to stay that way.

,

SOP's and Such

,

Front_desk_clerk

Steve Yastro's riff about scripts reminds me about my take on SOP's. Procedures and policies (and scripts for that matter) should be developed to create efficiency...and give your people more time to focus their creative energies on the guest...to build relationships. If your rules and processes are getting in the way, consider changing them...or, even eliminating them.

What if you could trust everyone in your organization? Would it change the way you write SOP's?


Source of image


Are You Having The Time Of Your Life?

Steve_irwin

Earlier this week, we lost a person who perfectly examplified how passion, enthusiasm and smiles make work look like play. Steve Irwin indeed always looked like he was having the time of his life...and showed us that it's the easiest way to get things done, be heard, influence others and yes, sell something. While some may think less of his overt nature, I personally enjoyed the show.

I believe that education is all about being excited about something. Seeing passion and enthusiasm helps push an educational message., Steve Irwin (1962-2006).

Thank you Steve for showing us how it's done.

And, thank you Garr Reynolds, Presentation Zen blog, for reminding me.

Memorial Video found on You Tube.

Benefit of The Doubt

Yesterday, I walked into the local print shop to order some business cards. I didn't need to go there...there are plenty of on-line options which are cheaper and faster. But, I wanted to support the small shop in my town.  Well, it turns out that it's a lot more expensive to  support my small town habit (about two thirds more)  than I thought. And, to make it worse, I get the feeling these people really don't value my business...just the tone, matter of factness of the conversation and their skepticism of my intention to pay for the design service (too long to go into here). No, I didn't walk out of there feeling very special. So, what am I paying extra for?

Consider this...

Most of your customers (guests):

  1. want to do business with you
  2. want to pay you
  3. want to promote your business to others (ratifies their experience and gives them a chance to show off)
  4. want to have fun

Note that they don't need to do any of these things...at least not under normal circumstances.

Now, if you believe this idea, and that the vast majority of customers aren't paying you a visit with the intention of ripping you off or otherwise ruining your day, then you need to do this...act like you want to do business with them. Better yet, act like you want to be friends...and, until they prove otherwise, give them the benefit of the doubt!