Business is Good

To my regular readers I owe an apology as it has been over 60 days since my last post. It's been a hectic fourth quarter and for that I am thankful.

As you can imagine, when we decided to launch Denton Hospitality there was a lot of discussion about what the company would do and how we would do it. In the end, we identified three separate but related lines of business. First and foremost, we knew we wanted a hotel management company. Considering the state of the economy and our strengths we identified distressed properties as our target market and we started networking.

On November 25th, less than 60 days after launching the company, we took over management of a hotel on the Eastern Shore that was in foreclosure (less than two years after it opened). In that period of time we had finalized our business strategy, developed a corporate website and brochure, documented operating procedures and written an employee manual. Thankfully, we were well prepared on the takeover date and everything went as well as (if not better than) could be expected.

The point of this posting is to (somewhat sarcastically) offer a few pointers to owners/operators of distressed hotels in hopes that it might help you avoid foreclosure:

• use an employee schedule and time clock to manage your labor expenses
• implement secure cash handling procedures to protect your cash income
  
• get a decent website - more than 50% of travelers book hotel rooms online
  
• make sure your hotel is in the Global Distribution System; there are 600,000 +/- travel agents who use that system to book rooms, and thousands of travel websites that use the same to populate their databases
• list your property on the state tourism website (in Virginia it's Virginia.org)

My industry friends reading this are thinking, "duh, Ed". Trust me, you'd be surprised. Several of our clients don't know the basics because either they aren't hoteliers by trade (got into the business via real estate investments) or they haven't kept up with the technology that influences our business.

For hotel owners, investors and operators that have distressed assets, the best advice I can offer is this: don't be hesitant to ask for help. Whether through management services or consulting services, there are firms (like ours) available to help you improve your results.

Annoucement

FOR IMMEDIATE RELEASE

“The Hotel Guy” Launches Denton Hospitality Consulting
firm offers practical training and consulting services to lodging owners and operators

October 1, 2009 – VIRGINIA BEACH, VA – Edward Denton, known by colleagues and friends as “The Hotel Guy” today announced the launch of Denton Hospitality Consulting. Denton is an accomplished leader in the hospitality industry. Early in his career, he was recognized as an intuitive hotelier who produced results, and his responsibilities rapidly increased to senior level management positions within leading national and regional hospitality firms.

Denton’s experiences span a wide spectrum of hotel types and market segments. His portfolios of properties have included Marriott, Starwood, Hilton, IHG and Choice branded hotels. Representing full service, extended stay, select service, economy, conference center and lifestyle segments, the locations have varied from city-centers to suburban markets and vacation destinations. Denton draws on his myriad of experiences to provide clients an enlightening perspective that ultimately produces positive results. He is best known for his high level of integrity and professionalism, candid approach, technological expertise, energetic training style, and commitment to guest service as the foundation for success.

Coinciding with the launch of his consultancy Mr. Denton is also announcing a major engagement with Hospitality v-Marketing™ (a leading eco-friendly marketing company in the hospitality industry), whereby he will assume a National Director of Sales role. This is a long term partnership in which he will develop and deploy a team of sales professionals to handle business development for the western half of the United States and Virginia, in addition to fostering relationships with key management companies. Denton is delighted to be working with the HvM™ founders to assist in building their organization and introducing their cutting edge, eco-friendly virtual marketing products to hotels around the country.

Denton earned his Bachelor of Science degree in Hospitality & Tourism Management from Virginia Tech. He serves as Vice President and Director for the Virginia Association of Hospitality Sales & Marketing Professionals, and he is an adjunct faculty member in Tidewater Community College’s Hospitality Management program. Previously, Denton held leadership positions as Vice Chairman for the City of Chesapeake Tourism Advisory Board and as Director for the Norfolk Division of the Hampton Roads Chamber of Commerce. He and his family reside in Virginia Beach, Virginia.

About Denton Hospitality Consulting

Denton Hospitality Consulting’s mission is to provide practical, hands-on services to hoteliers who desire to improve their property’s RevPAR and/or operating profit.

The company provides sales, marketing and management consulting and due diligence advisory services. Core services include sales and service training, market research, development and strategic planning, social media management, task force management, state-of-the-hotel assessments, eco-marketing, staff development planning and management recruiting.

Contact

Edward Denton
Denton Hospitality Consulting
477 Viking Drive, Suite 100
Virginia Beach, VA 23452
757-687-9223 | 757-340-4505 Fax
edenton@dentonhospitality.com

www.DentonHospitality.com

Hospitality & Health Care Reform

I'm going to jump right into the health care debate, with a few thoughts of my own on how it relates to the hospitality field...

First, I should note from a political perspective that I am a moderate independent. I have voted for both republicans and democrats and consider myself to be fiscally conservative, pro business and socially conscious. I support need based programs that provide necessities to those who truly need, not those who are lazy, unmotivated and/or irresponsible. I also support reasonable consumer protection regulation by the government because there is undoubtedly a despicable amount of greet and corruption in our society. To that end, honest business people should be able to enjoy the benefits of capitalism without undue hardship imposed by over-reaching government regulation or involvement in the markets.

So, that said, what is my take on the health care reform issue? Well, frankly, I think that what Obama has proposed makes a lot of sense and ultimately would help our industry. Here's why:

It's no secret that we are a low-wage industry. Many of our industry jobs require low levels of literacy competency, only basic physical skills and they pay accordingly. According to the Travel Industry Association of America, our industry employs 7.7 million people, but our payroll is only $194 billion - that math works out to about $25,000 per year on average. Curious about Virginia? The average drops to about $20,400 based on TIA data. Factor in management wages that are well above those averages and you can easily see what I mean by, "we are a low paying industry". [The 2009 Federal Poverty Guideline for a family of four is $22,050.]

It's also no secret that health insurance is expensive. To be specific, the national average employee's contribution is approximately $3,350 per year, for an employer based plan (individual plans are significant more expensive). Can you imagine living on $20,000/year? How about $16,650 after paying your health insurance premium? Of course not, and that's precisely why many (maybe most) of our line level employees are forced to make the difficult "choice" to go without insurance at all. In turn, many live a less healthy life than those with basic health insurance coverage.

It's also no secret that healthy, happy employees are more productive. Well, if your earnings are on the cusp of poverty level and you can't afford health insurance, you don't exactly have a strong foundation for a healthy, happy lifestyle. Here's where I think health reform can really help our business. IF all those associates who are currently uninsured could get basic health insurance at a reasonable cost, or even free for some of the lowest paid in our field, then perhaps they will be more productive workers? It's hard for me to imagine what it must be like to live day to day wondering if tomorrow you will have some medical issue and no insurance to help get you through it. Perhaps for some it's a way of life they are accustomed to, but for others it is a psychological burden each and every day. I can imagine it would be a positive change in one's persona if that were no longer a worry; and I can imagine that person might provide better service if they felt more secure in their own life...

You see where I'm going with this... healthier, happier, more secure feeling employees would lead to more productive service minded associates, which would lead to more satisfied customers, which would lead to more recurring business and higher perceived value of 'experiences' and consequently higher average rates. I can imagine a hospitality industry where we combine all the great service and jobs skills training already in place, with happier, healthier associates and I envision a dramatically changed "experience" for our customers.

To be clear:

• No, I do not think that employers should pay line level associates more so that health care is more affordable for them. I believe that market competition will dictate what each position is worth.
• No, I do not think that the employers should be burdened with the aggregate cost of insuring every associate. Again, I think that competition will dictate what benefits are necessary to attract/retain staff. Specifically, the degree to which the company subsidizes the insurance plans should be market driven, not dictated.
• No, I don't believe it would cost hospitality employers significantly more money. True, under Obama's proposal, businesses would be required to offer company subsidized health insurance to all employees. However, because of the currently high costs many hospitality firms have extremely low enrollment. For example, a mid-size management company may have 1,500 employees with only 200 or so enrolled in the plan. Well, if that enrollment suddenly sky rocked from 10 or 15% to 100%, said company would have substantially more purchasing power and distribution of risk and in turn would negotiate far lower rates with the insurers. Furthermore, many of the aforementioned associates earning low wages may qualify for the government sponsored program without further expense to the employer.
• Yes, I believe that every American should have access to basic health insurance. We are too advanced of a nation to have 46 million (approximately 15% of the population) without insurance.
• Yes, I believe that with a group plan with millions of participants, the government can create a very affordable public option (keyword being: option) to further enhance the competition.

Questions Remain:

- Is the plan fool proof? No.

- Will is cost taxpayers and business owners? Probably.

- Is it worth it? I think so, especially if ultimately there are more options and more competition that drive down the per family costs without sacrificing quality of care while providing a basic need to millions of hard working Americans.

- Is a compromise possible in Washington? Humm, time will tell. I sure hope so and promise that any elected official representing my district who doesn't work in good faith toward a compromise will surely lose my vote.

In the meantime, I encourage you to take a trip and stay in a hotel - it's good for the economy and your sanity.

Back to School with Professor Ed

After a nice summer vacation from my second job, this week it's "back to school". I was excited to find that this semester's Hospitality Management class at Tidewater Community College has better than average enrollment, and my mix of students seems to be of a higher caliber than past semesters. About 75% of the class has jobs in the hospitality business already and they are looking to get into management or switch disciplines within the field. Other students include a handful of military retirees looking for second career in hotel management (or ownership), and then I've got a few culinarians who are taking my class as part of their core requirements.

For those of you who know me personally and have had the opportunity to talk-shop, you've probably heard me say this about our industry, "It's not rocket science." I stand by that statement and really believe the fundamentals of our business are pretty simple. Don't misunderstand that to mean that the hotel business is easy to manage, it's not. While the principles of hospitality management are pretty basic, executing them consistently is what makes the business challenging. I'll share a few simple, but insightful concepts from lecture one of my class that started this week. Perhaps the refresh on these basics will help you be a better manager:

- Our products are intangible. That's right, when you checkout of a hotel, all you leave with is your receipt and your memories. Our products are service and experience, nothing more. [One student argued that you leave with towels and pillows too...only if your a thief, they aren't really the product, just an amenity for your temporary use.]

With an intangible product we are constantly challenged to produce a consistently positive experience for guests, but we have a litany of variables that influence that experience (aka: product). For one, our customers are part of the product. That's right, guests in a hotel have an ability to influence other guests experience and therefore are a part of the product. For example, if the room next door is loud and obnoxious that influences your opinion of the hotel/services/experience. Controlling this element of customers influencing others is difficult. Another way guests influence the product is because each guest has unique expectations, and therefore we must tailor our product to each individual consumer. We can't just produce 100 widgets and make them all the same - we have to make each of those 100 guest experiences unique in a way that satisfies each guests' needs. Consequently, quality control of our intangible product is a constant challenge because our factory (aka: hotel) doesn't (or shouldn't) operate like an assembly line.

So how do we deliver on the service promise that our guests expect?

1. Encourage every employee to act like a manager. Simply, the first fundamental of managing a positive service environment is to allow your front line staff to act like a manager. It's critical that they are trained and then given the autonomy to make decisions on the spot and in the moment. Will they screw it up sometimes? Yes, but the cost of those mistakes will rarely outweigh the cost of consistently poor service from un-empowered employees.

2. Handle moments of truth correctly. A moment of truth is when there is direct interaction between customer and staff. Whether checking in or checking-out, scheduling a wake-up call, taking a breakfast order, or making an airport pickup -- these are the moments your guests will remember. How did the staff act, what was their body language, did they speak genuinely and professionally, was their uniform tidy, how did they handle a question or complaint? Guests' perceptions are created and expectations are met, not met or exceeded in those moments of truth. Of note is that managers are present during only a small fraction of these moments of truth, hence the importance of #1.

3. Hire good people and keep them happy. Turnover is perhaps our industry's worst enemy. The reality is that hotel managers often make the mistake of hiring for skill, instead of hiring for personality and training the skills. The unfortunate truth of service industries is that we often fail to set the expectations early on, we fail to spend adequate time training and we fail to keep our associates motivated. Check out this video - it is so accurate it's embarrassing. Keeping associates happy who spend long days on their feet, dealing with people or cleaning rooms or serving food all day is not exactly easy. It's incumbent on the managers (who don't exactly have a boring day either) to keep the work environment relatively fun and enjoyable, if want to reasonably expect associates to deliver on the service promise. Generally speaking, unhappy associates do not make for ambasadors of good service.

4. Respond in a timely manner. Like it or not, our guests expect (and generally deserve) an answer now. Whether is a sales lead, customer complaint, meal service or simple reservation request - time is of the essence, if we intend for the guest to maintain a positive impression.

5. Control costs - especially labor. Finally, the catch phrase - "do more with less" is forever our task. Of course, cost containment yields higher profits. Unfortunately, cost containment generally wears on employees who in turn feel over worked with fewer resources than ideal, and so #3 become ever more important.

Again, nothing I've written here is rocket science. However, as managers (I'm guilty too) we get caught up in the administration of our business and often lose sight of delivering our core products - service and experience. I've found this holds true for companies both large and small, well structured and poorly, with and without organized training and those that operate both big and small hotels. To counter the challenges we face, it's important to regularly and consistently manage our service standards and expectations using the above fundamentals in order to deliver the service promises we make and our customers expect. When you combine the core fundametals of hospitality management with common sense, I belive the rest (ie: profiability) falls into place. This general approach has worked well for the likes of Bill Marriott, Walt Disney and Conrad Hilton so I think it's fair to recommend...

Good luck in producing your intangible product and consistently delivering on your service promise!

Why You Should Not Use Online Group Planner Sites

Here's a bit of useful advice for planners, whether your a pro or a novice: STOP using third party online RFP websites and START using local CVBs.

Listen, I completely understand that planners are busy as heck and just want to find the easiest and fastest way to get competitive quotes for their business. What I don't understand is why local CVBs are not the preferred clearing house? Unfortunately, the answer is that CVB's haven't done a good enough job of keeping up with the times and staying ahead of the technology curve to offer end users a service they obviously want. I believe it's time to call for change.

Today, there are dozens, if not hundreds, of ad-hoc planner websites out there. Frankly, I am completely annoyed with the number and quality of sites that are doing nothing more than putting a database online and then scraping 10% (or more) off my top line.

What planners don't realize is there is zero value-add, other than convenience, from these third party online clearinghouse RFP sites. Here is what you do get from a Convention and Vistors Bureau that you probably won't get from an online RFP distribution site:

• NET rates, not ones that are inflated to cover the cost of commissions
• a local point of contact who knows the area
• distribution to hotels/venues that actually match your needs
• up-to-date information
• local attraction/event/vendor information
• un-biased proposals, instead of fake endorsements based on ad revenue

We (hoteliers) have got to take back control over our own industry. First the online travel agencies took control of transient inventory and now they are tapping into group business, at the expense of our customers. Perhaps the local/state/national associations need to ban together and create a non-profit online group booking engine, but in the meantime I hope a few planners will read this blog and re-consider how they go about planning their next meeting.

So, go, call the Convention and Visitors Bureau and don't waste your time online.

Hotel Contracts - Done Right

I suspect that many readers would concur that perhaps the most frustrating part of hotel sales is enforcing contracts. You see, we often find ourselves caught between taking care of the customer and taking care of the business. It's hard to develop solid relationships and repeat business if your customers don't feel taken care of; and it's hard to maximize revenues if you are taking too good care of your customers. So, I propose a solution: write the contracts well from the onset and be sure your customer understands what they are signing.

In my experience, too many sales managers will send out a contract to a client, without discussing the terms in any detail. I believe they do this because they are (consciously or subconsciously) trying avoid an uncomfortable conversation. True, discussing the details of cancellation and attrition penalties can be a sticky conversation - but it is oh-so-much more sticky when done after the agreement is already signed. What makes the issue even more challenging is the number of clients who sign agreements without a) reading them or b) understanding them. The client, either rushed, confused or both, just signs it and returns it without regard for the details on page 2 thru 5. Newsflash: those pages matter and should be discussed before everyone signs in agreement.

Each group is evaluated differently based on the pattern, program details, market segment, history, season, budget, etc. For some reason though, sales managers often fail to consider the group's realistic ability pay any breach of contract penalties (particularly with SMERF groups). So, I ask the question, what is the point of a cancellation or attrition clause if your group doesn't have the financial means to pay that penalty? Obviously that is pointless, so you need to find another way to protect the hotel within the contract - one that is realistic for all parties. Perhaps you could establish a more strict deposit policy, smaller block, individual reservation cancellation penalty, or move the cutoff date. Maybe you need to avoid the formal contract and just offer a "courtesy block" or in some scenarios you might decide the business isn't a good fit for your hotel/resort. Your negotiating options are only limited by your creativity to make it work, with realistic terms, for all involved.

In my view, the first step of having a solid contract is insuring that a) your expectations are realistic, b) that the customer understands the contract terms, and c) that you mutually agree to them before signing on the dotted line. Renegotiating a contract after it's been signed (whether a couple days or few months later) is a recipe for a frustrating and potentially relationship killing conversation. In the unfortunate circumstance when a client fails to fulfill their obligations, they should not be surprised by the consequences. That's the key - no surprises. And the only way I can think of to insure there are no surprises is to make certain you and the customer are clear on your mutual expectations and each clause of the agreement. After all, the whole point of a contract is to pre-establish terms, conditions, penalties and damages so there is no need for mediator or lawsuit in the event of a performance failure. They are written to protect both the hotel and the customer.

All this being said, yes, there will still be circumstances where you offer after-the-fact concessions or waivers of penalties/damages. However, then it is only being done as good-will, for which you will be praised as your client as a hero! They will have a much greater appreciation of your gesture if they understood the initial agreement, instead of having that "this isn't fair and you should let me out" attitude that comes from an uninformed client.

So, go, sell some rooms and conferences, and be sure to review that contract with your client before they sign it.

Group Rates Follow-Up

Last week in Richmond, the Virginia Association of Hospitality Sales & Marketing Professionals hosted a seminar/panel discussion addressing the group rates crisis. We had a great turnout with a true medley of sales pros, meeting planners, and even a sharp revenue manager to keep things interesting. As you might imagine, there were a variety of opinions, suggestions and best practices that were highlighted, such as:

1) Hoteliers, don't drop your rates. [I know, like that's a rocket science bit of advice!] But seriously, this is the root of the group pricing crisis... for some reason your transient rate is lowered below your group rates on the books. Everyone agreed that by definition group rates are supposed to be below transient/public rates. However, the panelists also agreed that in some scenarios you really need to lower your transient rates. So, in that situation,

2) the hotel sales and revenue management departments need to be in sync, so the rates aren't lowered on dates when group is paying more. For example, your revenue manager may have decided to drop your summer prices for the entire season without discussing it with the sales team. (oops) After a little heart-to-heart in your strategy meeting the team opts to keep certain dates at premium prices because the rock-star sales team already has groups who have booked at the old prices. In the unfortunate circumstance when the team still finds it necessary to drop below those group rates,

3) notify your clients. Simply, group planners don't like to be surprised. It's a much more pleasant conversation if the hotel initiates it, with a game plan/options on the table, versus the client "calling you" on it. At that point the planner has already been chastised or mocked by an attendee and hence their demeanor is a little less empathetic with the sales manager. Among the aforementioned options you might offer, the panel suggested:

3-a) enhancing the group value adds for the client, such as upgrades to premium rooms/suites, golf, spa or beverage credits, etc. Your value-add options will, of course, depend on your property and creativity.

3-b) Lower the group rate to a logical figure relevant to your new transient pricing, or

3-c) stick to your guns on the rate, explaining to the client why. For example, if a conference group rate includes rebates, food and beverage events, conference space or other real cost items, then it is incumbent on the planner to educate their attendees accordingly.

The panel also discussed how to avoid the issue for future groups. First and foremost, hoteliers need to reference bullet #1 above. A couple other options mentioned were:

4) for planners to request a "best rate guarantee" in their group contract. The hoteliers had mixed opinions on this, but if you do agree to it, reference bullet #2. With a complex network of reservations channels, the implementation of rate "guarantees" isn't as simple as it may seem.

5) Both planners and venues should consider dynamic pricing. For example, setting a group rate of 20% off the "rack rate". If negotiating this scenario, a second level of protection for both parties could easily be inserted with "not to exceed $xx or be less than $xx".

Please note that the event was a full hour and a half of non-stop discussion with in depth analysis, logic and explanation from all perspectives. There were many great points and take-aways, not all of which are noted here, so be sure you don't miss the next VAHSMP event. To join the association or become a sponsor, please contact the office at (804) 747-4971.

Group Rates: A Crisis for All

The scenario goes like this: the meeting / conference / reunion / tournament planner, after weeks of research, site visits and negotiations, books their group event the hotel or resort which is best able to meet their needs. They take a sigh of relief, comforted that the space and date is now confirmed, and then begin pondering the other details. They've moved on to setting the agenda, soliciting attendees, and arranging off-site events. Still months away from the arrival date, they haven't talked to the hotel in a while. The planner thinks everything is fine and intends to work out menu and room setup details a few weeks in advance - not yet.

Then, a couple months go by and now we are about 6 to 8 weeks out from arrival and the calls start coming in...one or two, then three or four more, complaints about the group rate being higher than the hotels regular rate. Why?!?

Here's what happened: attendees who are making their travel arrangements have called the host hotel for group rates. But, they are trying to minimize their costs (who isn't these days), so they also go online to check other nearby hotels' rates. They are thinking, "I can find something cheaper, nearby - I'll have a rental car anyway - so why not save a few bucks." A few clicks later, their thought is, "huh? that doesn't make sense?". They've found a room at the same hotel, same dates, for cheaper online. Momentarily they wonder why, but that wonder quickly changes to excitement that they've scored a deal and they quickly confirm that great rate. After the confirmation number pops up, they call the planner and mockingly compliment them on the "group discount" they negotiated. Now the meeting planner is just plain angry and their next call is to, guess who, that hotel sales person they haven't talked to in six months.

What happens next is the million dollar question. The hotel or resort has all sorts of options depending on the nature of the group, history, future potential business opportunities, contractual details and perhaps most unpredictable - the judgment of the sales manager and/or higher ups. Some hotels will quickly fold, reducing the group rate to match or slightly beat the online rate. Others will offer some completely legitimate explanation or completely illegitimate excuse. Nonetheless, at this point the client is ticked, as is the sales person, because there are bumps in the road at a point when the planner wants to be focused on other details and the sales manager wants nothing less than to offer concessions after the contract is inked.

If this sounds like a dilemma you have a faced (from either side of the table) plan on attending the Virginia Association of Hospitality Sales & Marketing Professionals seminar and networking event this Thursday, June 4th, in Richmond. Details and registration form at http://www.vahsmp.org. Or, just follow this blog and I'll post some best practices after the event.

Summer Time Already?

WOW!?! Where did the year go? Is it really almost June already...

About this time of year many folks start thinking about what to do for summer fun. Whether planning a full blown vacation or a weekend trip, the seedling ideas are germinating in the minds of many. So, I have a thought or two to share in hopes of saving you some money.

First, consider your location and weigh the value of location as it relates to your total budget. Often times you will find substantially better rates in off-the-beaten-path hotels. For example, if you're heading to Virginia Beach this summer, you ought to consider staying in Chesapeake. What's that - you've never heard of Chesapeake? Ohh, no, not the bay - the city. Chesapeake is a city wedged between Norfolk and Virginia Beach. There are more than 4,000 hotel rooms, a ton of restaurants and a variety of leisure activities - both indoor and outdoor. The icing on the cake - Virginia Beach oceanfront is just 20 minutes away, downtown Norfolk is a 20 minute spin and Williamsburg is only about 40 minutes (with the wind behind you and no traffic). What's my point? Chesapeake is centrally located, easily accessible, seriously affordable and has a bunch of really nice hotels so you don't need to sacrifice quality!

But that's just one example - check out the outskirts of your favorite summer spot and you might just find a similar scenario in places like Hilton Head, Myrtle Beach or Ocean City.

Second, don't mess with third party websites (aka: Travelocity, Expedia, Kayak, etc.), they are a waste of time. Contrary to popular belief, 9.9 times out of 10 you will get the best rates by booking direct through your preferred hotel website. So, if your Marriott loyal - just start with Marriott.com, brand rules require all hotels to offer equal pricing on all avenues. With Starwood, Hilton and Holiday Inn, their brands also have rules that insure you will get best pricing from them and not travelocity, orbitz or some other middle-man. Another reality is that you will find it much easier to change/cancel/reschedule reservations made direct and not through a random web channel. Of course, if your a close personal friend or family member, feel free to shoot me an email and I'll try to hook you up with friends and family rates :-)

Third tip and final words of wisdom for today are: don't trust tripadvisor.com. It's no secret that we would all rather believe the advice of another consumer before we trust an advertisement. However, find a better source. TripAdvisor.com has no system to validate that comments are from actual guests. A little known reality to those outside the business is that shady hoteliers make common practice of loading fabricated feedback about both their own hotel and their competitors. You see, they post positive comments about their own locations to boost rankings, and they simultaneously post shabby remarks about competitors to lower their rankings. As well, legitimate posts are often times connected with the wrong hotel (ie: same name different location). In turn, the end user is reading 75% BS mixed in with the occasional real feedback. So, you're better off referring to blogs or subscription based rating sites if you find that information useful. Just bear in mind that whatever you read online (positive or negative) is a snapshot and only that - influenced by the unique circumstance of that guest, other guests and staff on duty at the time....so, your experience may (and probably will) vary from that random review you read.

All that being said, go plan a trip and enjoy your summer! If you're considering relocation to the Virginia Beach area I strongly suggest you check out www.KimberlyDenton.com for area information and a fantastic realtor!

A Weekend at The Homestead

I've just returned from a conference at The Homestead, the finest resort in Virginia, so I thought I'd share my experience.

Although the drive was long, and a bit harrowing at times, the scenery and greeting we were offered upon arrival seemed to make you quickly forget the drive.  It was, as we say in the business, a great "sense of arrival".  As to be expected from a four diamond establishment, the grounds were meticulously groomed, the valet seemed to be awaiting our arrival and the bellmen were ready to assist - but pleasantly not overbearing.  A common characteristic of the staff throughout the weekend can be described as genuine.  They were gracious, accommodating and friendly, but best of all it seemed to come naturally.  It was not that fake, labored smile that unfortunately has become the norm in so many hotels, restaurants and retail shops.  That, in itself, was relieving.

Nonetheless, the food was also fantastic, the banquet staff executed events with precision, every employee was in a well fitting uniform, the cigars were fresh and the drinks were regularly refilled.  Oh yeah, the speakers at the conference were world class and delivered highly useful information and best practices.  I would post those here, but instead I'll just say "you should have been there!"

For those of you who have never been to The Homestead, it's important to note that this resort hotel is virtually the only economic generator in Hot Springs, VA and the surrounding area.  It is literally situated in middle of the mountains at least an hour from any city or town of significance.  Many of the hundreds of employees have been there for years and they rely on The Homestead staying busy so they will have a job and be able to provide for their families.  Unfortunately, the meetings and conference business has been the subject of a lot of negative press recently and that is amplifying the effects of the recession on the meetings industry, making it difficult for hotels like The Homestead to keep those employees busy.  Yes, there are absurd expenditures that were/are made occasionally by organizations that shouldn't be making them.  However, the overwhelming majority of meetings are worthwhile and by their very nature are designed to stimulate business.  Whether through training, customer appreciation, employee appreciation or continuous education - meetings mean business.  I encourage anyone who doubts this to visit http://www.meetingsmeanbusiness.com and read the facts.

Planners, the reality is that right now there are excellent value-add offers by virtually every hotel and resort.  So, don't wait to plan your next meeting - book today and meet tomorrow.

Meeting Planner Advice

Most meeting planners are very familiar with names like Marriott, Hilton, Sheraton and Crowne Plaza; after all those types of hotels are host to countless meetings every year. However, names that meeting planners often forget to consider are those affiliated little brother/sister brands such as Courtyard by Marriott, Springhill Suites by Marriott and aloft - a vision of W hotels. The reality is that meeting planners could save a lot of money if they included more "select service" brands in their RFPs.

With increasing frequency, developers are building "select service" hotels with ample meeting space to host small to mid-size meetings. Historically, by definition, select service hotels were designed for business travelers. Their room layout, services and amenities were custom tailored to meet the needs of road warriors, and little consideration was given to targeting meetings business for these hotels. The little sister/brother brands were conceptualized as offering limited (but sufficient) services to individual travelers not attending a meeting or conference and in turn operating with substantially lower costs. However, during the past five years the line between select service and full service brands has become increasingly gray.

While the aforementioned brands are still well recognized as great hotels for individual business travelers, many of them also have the capacity to host small to mid-size meetings (10 - 200 people). The truth is that as building costs skyrocketed, hotel developers got creative. Instead of building large "full service" properties that require substantially higher construction and operating costs, many opted to build select service brands and tweaked the design to accommodate more meeting space. You see, to build a Marriott or Hilton the brand requires physical amenities such as large lobbies, restaurants, larger fitness centers and VIP lounges, and they require additional services such as valet parking, evening turn down and bellmen. Well, a select service brand such as Springhill Suites doesn't require any of those extras. Typically, it's a lobby with ample space to serve free breakfast, an adequate but not extensive fitness room, and guest suites - that's it. So developers realized they could take a prototype select service product such as Springhill Suites, add a ballroom and extra kitchen space and voila create a pseudo full service hotel at a fraction of the traditional cost.

The end result - select service hotels that are perfectly designed to accommodate small to mid-size meetings. As it turns out something like 75% of all meetings fit that size category, so the market is flush with opportunity (good for the owner). And, these smaller properties offer the customer the intangible benefit of exclusivity. In a big hotel you often have to share the common space (and service staff) with other groups and you lose any sense of intimacy - well at a select service hotel with a couple decent size meeting rooms, planners feel like they own the place because their group is the only group in house. All the while, the services and hotel amenities are plenty sufficient for guests to have an enjoyable and productive stay.

Meeting planners also enjoy cost savings at a select service hotel. At Springhill Suites, for example, breakfast is complimentary to overnight guests - so immediately there is a cost savings. As noted earlier the operating costs are lower; for that reason and simple brand differentiation, meeting planners can expect to pay slightly lower overnight rates at a select service hotels compared to their big brother/sister locations. And when it comes to food and beverage, planners can typically expect competitive quality and prices at smaller hotels. Many smaller properties have the kitchen capacity and culinary staff to handle catering, and others contract as needed with local restaurants or catering services. To all meeting planners (professional and novice) seeking a quality meeting environment, the message is this: it behooves of you to consider traditionally select service hotels as your host - many of them aren't so "select" in their services anymore.

So, go, plan your next corporate meeting, church retreat or family reunion, and be sure to send your RFPs to those less traditional meeting locations! Visit your preferred brand website or call the convention and visitors bureau if you aren't sure where to start.

Hey Congress & The Media: Cancelling Meetings Costs Money Too

This was an old post from early 2009 that apparently I saved as a draft and never actually posted, but it is still worthy:

Some food for thought...hotels charge cancellation fees when you cancel a big meeting/conference. So, this idea that we are saving taxpayer dollars by cancelling junkets to Las Vegas and blackballing every "resort" in the Nation is nothing short of a display of ignorance.

Mr. President and Members of Congress and Members of the Media: Guess what, for all those meetings that were cancelled as a result of the PR bashing, the venues probably still collected a handsome cancellation fees. However, the people that lost-out were the employees of those hotels/resorts that didn't get hours or gratuities they need to feed their families, and the cab drivers, and the airline stewards, and the restaurant waiters, and the dry cleaner, and yes the casino dealers too. They lost their livelihood as a direct result of certain meetings that were cancelled, and they are still suffering the consequences of the anti-meeting media blitz that was sanctioned by the administration.

So, this begs the question - would you like to flush a few hundred million down the toilet in cancellation fees, or would you rather allow and encourage the natural economic stimulus that occurs as a result of meetings? The reality is that meetings and conferences are a spark of spending where the meeting itself is only a fraction of the total economic impact. And, meetings generate results that improve business practices and profit margins and initiate new ideas and R&D spending. Yet, all this considered (or apparently not considered) the meetings/conference/travel industry seems to continue to be badgered by horrendous and misleading press coverage. Frankly, that sucks for the 1 in 8 Americans who rely on our industry for employment.

For those of you in the business - do something about. Get involved. VAHSMP (the Virginia Association of Hospitality Sales and Marketing Professionals) is one of many opportunities to get involved with the big picture of promoting tourism/travel. In addition to offering educational events and networking, VAHSMP in conjunction with the Virginia Tourism Corporation, are a voice for the hospitality industry in Virginia. Find VAHSMP on LinkedIn, Twitter and Facebook.

And, while your online, check out http://www.meetingsmeanbusiness.com/ for more information and learn how about getting involved.

Take a Staycation @ aloft Chesapeake

Perhaps some of my readers have noticed, but for those that haven't - your investments aren't doing so well, you owe more on your house than it's worth,  and by the way your job is probably about as secure as a house of cards in the sand of Virginia Beach on a windy day.  I hope you sense the sarcasm because I'm laying it on pretty thick - we've all been over stimulated by negative news during the past six months.

Americans need to escape from the stresses of current events, step away from the 24/7 flurry of news, and enjoy life without worry - even if only for a short couple days.  For good and prudent reasons, many (if not most) people are planning to trim back (but not eliminate) discretionary spending this year.  So, for those that are seeking a break but don't want to break the bank on travel to a far away destination - I suggest a staycation.  The concept is simple, you stay near home, but away from home.  This reduces vacation travel costs and allows for shorter spurts of rejuvenation, instead of taking a long, expensive vacation away from home. 

Now, I know, nobody wants to go to a bla hotel that's just a big box with rooms and offers little life or pizazz.  So, I suggest something new...something different...something that stimulates your senses...an experience you have never had before.  You need to come check the scene that's abuzz and discover the new tWist in travel at the aloft Chesapeake.  This is not your parents hotel - come check out the fresh funky designs and local artists wall while you mix, mingle and play at Aloft's W xyz Bar and sip on one of the 9 signature cocktails.  If you'd rather just lounge in one of the ultra sheik, loft-inspired guest rooms while catching the latest flicks on our 42" lcd tvs, that's cool too.  After your weekend staycation at aloft, you will no doubt feel re:laxed, re:charged and re:freshed - yep, there's a state of the art fitness center and an indoor pool where you can splash a:round too!

For my readers that live around the state, it's really just a quick ride to Chesapeake and once you're at aloft, the beach, the arts and the peace and harmony of nature are just a quick spin from the hotel.  So, check out the special offers page and book your Staycation!

The Travel & Vacation Bailout

Some will read the headline and think, "huh?". Bear with me, I think this idea has some merit.

The Facts:
According to the US Travel Association, the travel industry generates $700 Billion in revenue, 110 Billion in tax receipts, 7.5 million jobs (roughly 5% of all US jobs) and $178 Billion in payroll. In the lodging sector, Convention/Tourism and Economic Development offices use a figure to calculate the economic impact of visitors to the area. That is calculated based on estimated purchases in the locality based on an guest staying overnight. For example, one might say the multiplier effect is $150 in a particular area - that means that for every hotel room sold in the city/area, on average an additional $150 in purchases of entertainment, gas, food and incidentals will accompany that lodging room purchase. Using that methodology you can use your imagination (or a calculator) to figure how big the trickle down effect is from travel on many other segments of the economy (gas, retail, restaurants, etc.). With the economy in a tailspin, the travel industry is one of the hardest hit and last to recover, and because of that the negative trickle down impact is substantial.

The Idea:
In the United States, there is no statutory requirement for vacation time, but in many other developed nation there are such laws. So, instead of bailing out companies that were irresponsible, and instead of spending a trillion dollars of governement money on various initiatives, I am suggesting a mandatory vacation for every American worker (150,000,000 people) - fully paid by the US governement, up to $5,500.

Why does this make sense? Well, for all the trickle down reasons I have previously identified. If people travel, they spend money on airfare, gas, retail purchases, restaurants, entertainment and ancillary related expenses. All of that spending would undoubtedly save or create jobs in all those various sectors of the economy and would generate an incredible amount of taxes for local and state governments. Of course the direct economic impact would be massive, but the bonus would be that with the incremental tax revenues the local governments could do what is best for their area to stimulate spending and really kick-start the economy back into gear. Once the economy is clicking again, new ideas will germinate and capitalism will generate the private investment and creativity necessary to sustain continued growth.

Some would argue that this would only benefit resort areas. I argue that is simply not feasible. Number one, $5,500 is not enough to travel to a resort and enjoy a full week stay. Second, there isn't enough resort inventory to accommodate the 150,000,000 vacationers. Also, in tough times, many people would be perfectly happy traveling to see family or friends and would use the bulk of their vacation stimulus on shopping, eating out and enjoying the company of their loved ones. That can/would occur in every city/town across the country thereby spreading the impact to all corners of this fine nation.

The Best Part
So you see how the math works, but the added benefit is the intangible but incredible optimism that would be stimulated by a free vacation for every American worker. People would be able to relax, recharge thier batteries and come back to work with a more positive attitude and outlook (ie: consumer confidence would be mended). And, the icing on the cake, is that for every single employer, private or public, they would have a full week of payroll relief for every employee. So, we improve moral, generate $800 Billion in consumer spending and save billions of dollars in payroll costs for employers, in turn kick starting the economy and stimulating job growth and innovation. With that, home values will stabalize and the housing crisis will resolve itself and we'll be on our way to another couple decades of American over-indulgence that our culture so deeply cherishes!

Doesn't that sound like a viable plan? I thought so - now, go, take a trip and stay at a hotel!

Slacking on the Blog

I know, I've been a major slacker since before Christmas. More to come...