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Hotels at Risk of Losing Sight of Priorities and Chances To Connect With Guests

As published on CoStar.com

There are moments in life that force us to stop, reflect and feel. More specifically, stop what we are doing, reflect on our actions and decisions and take the time to feel and set a path forward.

The pandemic has challenged many of us — and the entire hospitality industry — to rethink how we conduct our business, how we serve our guests and, most importantly, how we act toward our fellow team members. With continued and ongoing uncertainty, we are on a path of commoditization that may serve only to drive individuals out of hospitality. The alternative is to seize these moments and make them transformational.

Decreased travel, rising customer expectations and a continued exodus of talented individuals require all of us in the hospitality industry to stop, reflect and feel. We are being called upon to go beyond the status quo and take a fresh approach to our business. We must be creative in generating new sources of demand, as well as engaging in our communities and in one another. The culture of commodification and our old ways of doing business stand in the way of differentiating our hotels from competitors and serving niche markets. That culture also doesn’t foster active talent management and the meaningful, personalized experiences that create return guests and make our businesses thrive.

Generating new sources of demand to replace a stalled business travel market and the slow return of large group demand is an opportunity to rethink our path forward. Providing our guests with memorable experiences that reignite the joy of travel will be the heart and soul of what makes hotels successful. With today’s new stress, we have lost sight of our priorities. The art of listening is upon us, and it is imperative that we stop to listen. A true “investment strategy” is critical in this regard.

Once we stop, we must take time to reflect. The opportunity of reflecting on our interactions with guests and employees directly impacts each and every one of us. It is important to ask ourselves how that interaction went and how we could have improved it. The opportunity of training comes to the forefront of reflection, as understanding of an employee’s impact on guest interactions cannot be overstated. This specifically entails ensuring that our dedicated hospitality workers reinforce what I have previously called the lost art of service.

In this industry, feeling — not just thinking — is vital. Every guest has a different picture of what the experience is going to be like at a hotel, and we now have the opportunity to create unique experiences that take advantage of the local culture. Room packages can be tailored to the area. Something as simple as offering a short cooking class can provide an intimate group experience that further drives both engagement and profitability. Through this approach, we can further de-commoditize the traditional guest experience while providing today’s travelers with an experience that was exactly what they needed in the moment. The objective is for the service provided to fulfill the guests’ customized needs.

Once the art of service has been restored, it is only a matter of time until customers begin feeling like each experience is unique to them. Every interaction with someone impacts their experience at a hotel. The simple gesture of a smile and saying “you’re welcome” goes a long way. I learned this lesson while working at the Four Seasons Resort Maui at Wailea in the beginning of my career. Engaging guests with simple gestures in anticipation of their needs helped transform their experiences.

For example, this anticipation can be achieved through a welcome email with three questions. But all too often, we miss the opportunity of connecting with our guests post-departure.

Recently I received a post-stay email that was personal, thoughtful and had a tinge of humor, which made me pause and reflect. It allowed me to further reminisce on my experience. Allowing for an additional connection to the hotel. I could feel the individual wanting to further connect ensuring that my needs were met.

No matter what the guest experiences are outside of the hotel, de-commoditization of a hotel experience can make guests feel seen — that their experience was exactly what they needed in the moment. Even a small moment of connection — from our perspective — de-commoditizes a traditional hotel experience.

All of us, including myself, have needed to stop, reflect and feel over the past several years. Hotels — and the hospitality industry generally — have undergone a significant transformation in the 2020s. In part as a response to these changes, hospitality has a vibrant future with many opportunities, such as responsive business models and innovative offerings. And while some factors, such as the pandemic, are out of our control, what we can control is the pace at which we can stop, reflect and feel for the benefit of our customers, our team members and our investments. Not only will it result in higher customer satisfaction, more engaged employees and more satisfied management — it may just have the added benefit of helping a property stand apart from the pack of commoditization.

Rob Tanenbaum is the Principal of Madison Hotel Advisors, a boutique hotel advisory firm focused on transforming hotel assets and asset management teams. Earlier in his career, he joined Host Hotels and Resorts, where he was responsible for a large portfolio of hotels under the flags of Four Seasons, Ritz-Carlton, Marriott, and Hilton. He has also worked for DiamondRock Hospitality, Hilton, Park Hotels & Resorts and PKF Consulting.

The opinions expressed in this column do not necessarily reflect the opinions of Hotel News Now or CoStar Group and its affiliated companies. Bloggers published on this site are given the freedom to express views that may be controversial, but our goal is to provoke thought and constructive discussion within our reader community. Please feel free to contact an editor with any questions or concerns.

The Engagement Opportunity

Guest service is the bell weather for many a business, and today’s traveler spends a great deal of time researching past experiences of other patrons prior to making a reservation at a hotel or restaurant. While the food may taste great or the guest room is of an exciting décor, the attention to detail of great service has a lasting effect.

Throughout my travels, I have often reflected on service levels that people receive on a daily basis, be it at the grocery store, a restaurant, hotel or inflight. The simple gesture of a smile and saying welcome goes a very long way to setting the tone. As the youngest of five, my family taught me the importance of warmly welcoming family and friends to our home, and I truly loved being hospitable, which probably fueled my interest to a hospitality career.

Like many valuable qualities, hospitality can be taught, and it was my experience working with Four Seasons Hotels and Resorts where I first came to appreciate the impact of genuine hospitality in a professional setting. The notion of treating a guest how you would like to be treated seemed like second nature, and I strived to make one’s travel experience memorable through actively engaging at every opportunity. The interactions and conversations with guests throughout their stay always nourished my soul.

While service levels have always varied, there is an additional distancing today due to Covid. It is just not the physical mask that is creating this separation, it is the declining interaction that has resulted from the use of QR codes for menus and the installation of plexi-glass at service counters, which is understandable.

In a new world full of restriction, seizing every opportunity to provide outstanding service cannot be overlooked, and it is this “Engagement Opportunity” that we have lost in our art of service.

Missed Opportunities

One of many examples in my experience occurred during a recent business trip to a lifestyle hotel in South Florida. Upon entering the restaurant, I was greeted by a hostess who was sitting down behind the podium and handed me a menu, allowing me to sit anywhere at the bar. This moment was an opportune time to seat me at the bar and introduce me to the bartender as well as connect the design decor with the menu. The impact of this interaction can’t be overstated as first impressions set the tone of a traveler’s experience and in this case, even if the food is outstanding, it is hard to overcome the first impression.

Upon sitting down, the bartender asked me what I wanted to drink, failing to a) introduce himself by name, and b) provide engaging insight into the unique bar offerings or recommendations. An offer of the daily drink special or his favorite beverage could have resulted in additional sales. At the time, this bar was empty, and the hostess was on her phone for the duration, so an engagement opportunity was present, but unfortunately overlooked.

After a few minutes perusing the menu, the bartender asked what I wanted with no recommendation of his favorite item(s). Mind you, I came in famished, so I could have easily been upsold on a variety of items. To his credit, he checked on me once to see if I wanted a drink besides water.

Following the entrée, I was asked if I wanted anything else with no mention of the delightful dessert selection that included my personal favorites of NY Cheesecake and Key Lime pie. I left this experience full of Maui fish dip and roasted chicken but disheartened at the lack of engaging customer service presented by the team.

Service Standards for Success

The missed opportunities from this experience are not the responsibility of individual employees, but in the training these fine people have not been afforded. We owe it to ourselves to reintroduce service training that goes beyond words, delivering dedicated and engaging time spent with team members, and translating that into meaningful customer experiences.

While businesses have done an admirable job in cutting expenses in this unprecedented time, it is imperative that we reallocate time and resources to training that will pay dividends in the long run. Great leadership understands this opportunity and as business ramps back up, these dedicated service professionals deserve time and guidance. For example, even though many establishments are using a QR code for their menu, food servers need additional training in a) how to feel comfortable in approaching a guest table, b) communicating about said menu, and c) the engagement opportunity.

The good news is that all is not lost as there are plenty of wonderful service professionals who love what they do and reflect that in their approach. A week after this experience in Florida, I went down for a late bite at the 1 Hotel South Beach and the individual working the bar was engaging and thoughtful, as he effortlessly replaced my incorrect entrée order. He was genuine in his communication and easily turned what could have been a negative experience into a positive one.

My gratitude also goes to Peter, an outstanding flight attendant working American Airlines 1060 to Dallas who graciously serviced the economy cabin on a delayed trip due to weather. His service was the best I have seen, and he was calm, comforting, and approachable throughout the entire flight. He took working in a Covid environment and a fully packed plane with grace, and his thoughtful response to each question demonstrated that he clearly understands the engagement opportunity.

The opportunity is upon us to bring back the lost art of service. With Covid restricting our public and social interactions for so long, a deeper level of hospitality is desperately needed and desired by the customer. Today’s great leaders will embrace this challenge and find appropriate ways to seize every opportunity for meaningful engagement with their customers.

Thank you for the privilege of your time.

Throughout my career, I have been asked what makes a great Hotel General Manager? This is a thought-provoking question as the importance of a strong leader has taken on a new meaning in today’s environment.

Adaptability

Words like passion, commitment, and understanding always top the list, though adaptability comes to front of mind as we navigate this new Covid world. Adaptation, as defined in The American Heritage Dictionary, “is an alteration or adjustment, often hereditary, by which a species or individual improves its condition in relationship to its environment”. The last part of this definition, “improves its situation in relationship to its environment”, is key in defining what a great leader needs to do today in the hospitality industry. Even with mass vaccine distribution, there remains many market unknowns including the return timing of significant group and business transient clientele.

This uncertainty, combined with less brand support due to corporate layoffs, requires an aggressive adaptation of sales and marketing initiatives as hope is not a strategy. There is opportunity for great leaders to grow market share through creative adaptation in order to drive the value proposition for all three parties – guests, employees, and owners.

Back on the offensive

Over the past year, hotel teams have done a great job implementing aggressive cost control initiatives, and now is the time to go on the offensive to drive revenue. Today’s General Manager needs to:

• Understand respective ownership’s cash commitments, as it relates to the asset
• Develop a break-even game plan, including a thoughtful sales strategy for achieving this goal

The importance of the Executive Committee understanding this financial requirement cannot be overstated. While no one can predict the future, group demand and business travel will continue to be severely impacted this year, and being realistic to this point, will help drive appropriate strategies. With a break-even game plan, critical thinking is key and while certain strategies have been successful before, the traditional demand that resulted from plugging into a distribution channel will not automatically drive demand to your asset today. Stepping back and understanding your property attributes as compared to your competitive set are imperative.

Overnight stays at your competition are eye-opening events that will allow for an appropriate understanding as compared to the traditional 30-minute walk-through visit after a guest room or meeting space renovation. Dining at the various outlets and speaking to the associates sheds a great deal of light on that operation. New ideas and opportunities abound from this simple approach.

While understanding the traditional set is a start, the need to expand this competitive set is greater today than ever before. No matter the property type, there are demand generators available that previously may have never been considered. For example, for a full-service hotel, select service, extended-stay, and mid-tier properties all have demand that can add much-needed occupancy points that will help improve the bottom line. Simply put, shifting 10 rooms a night from a secondary competitor has a lasting effect of 3,650 room nights annually. This demand can come from a variety of areas, including project work in a market. Hotel teams should look at how they need to adapt any particular offerings to accommodate a potential demand segment, while being thoughtful of the capital expenditure requirement.

Package offerings and amenities

Another area of opportunity includes taking the time to review your respective package offerings and update accordingly. Today’s traveler is looking for safety and security with amenities that provide these attributes. What packages can be offered that accommodate today’s leisure traveler? The adage of less is more is relevant as a few thoughtful packages can have a major impact as compared to a dozen different offerings. In addition, expanding on the current property offerings is an easy and effective update.

Creative programming has taken on a new meaning with today’s leisure traveler. The major brands have come out with a work/live/learn program. While this is a great initiative, there are unique experiences that can be further explored, which today’s traveler is looking for even during a quick weekend get-away. Opportunities include utilizing vacant meeting space for cooking classes, fitness programs, or wine tasting, all of which can be safely implemented.

Appropriate rates

Appropriate pricing and strong revenue management continue to be fundamental. The opportunity to drive demand should not come at the expense of rate as we have historically seen the negative effects of this strategy. A strong General Manager pushes their team to be thoughtful and stretch in this initiative. New demand channels and market segments can further assist in driving rate. Today’s traveler is willing to pay for a socially distanced experience and when combined with creative programming it can truly drive this opportunity.

Communication

Last, but certainly not least, the importance of communication cannot be overstated. Constant communication with ownership has and continues to be imperative, and a great leader over-communicates to their team in uncertain times. The need for additional town halls explaining demand levels, sales approach, and ownership requirements helps alleviate doubt and confusion.

The opportunity for change is upon us, and the excitement behind the vaccine rollout provides great anticipation for the future. Today’s new leader will now be defined by their ability to adapt and enhance the value proposition.