LESSONS FROM THE HOTEL INDUSTRY: The Evolution of Best Practices in Hospitality and Tourism, Part 2

Lessons From the Hotel Industry with Dr. John Hogan CHE CHA MHS

The first part of this series outlined a number of service management issues I felt would influence the hospitality and tourism industry over the next decade. Recognizing that the hospitality industry in many ways has become a mature industry, that column suggested major areas of research and execution to address those issues in global trends and competitors.

The future is always beginning now.

Mark Strand, Reasons for Moving

Last month I was asked what service management topics I felt would be relevant to focus on to mid-career hospitality and tourism professionals attending a 2-day executive education program devoted to service management.

My response:

The initial step must be to establish program objectives. These should include:

1. Providing a series of industry specific programs and courses for professional development.


2. Linking university hospitality program students and graduates to industry professionals with the executive education series and interaction from on campus programs.


3. Supporting the mission and vision of university hospitality programs by expanding this pilot program over an agreed upon period in support of the mission and vision of the university hospitality program.


4. Increasing interaction between university hospitality program faculty contact and industry executives to facilitate and student success.

Specific service management topics:

• Positioning Competitive Differentiation: Best-in-class hospitality and tourism businesses work and plan to leverage superior guest service to overwhelm competitors. This mindset reflects a strategic understanding that this industry must maintain a sense of personalized attention to keep guest loyalty.


• Addressing the declining profit margins of the traditional product-based hospitality industry through service management via factual data by market and business segments


• Providing interactive group exercises to demonstrate the power of linking service delivery as a pro-active management tool to combat the commoditization of the mature hospitality industry.


• Introducing specific service management tools and initiatives aimed to build guests’ perception from a neutral level of satisfaction to an attitude of loyalty, preference and passion for the total experience.

Many of my articles and columns have addressed variations of these questions, as it has been an important part of my professional experience. Reader comments and suggestions are welcome for inclusion in future publications.



What are you doing at your hospitality business today?

Feel free to share an idea for a column at johnjhogan@yahoo.com anytime or contact me regarding consulting, customized workshops, speaking engagements.

And remember: We all need a regular dose of common sense.

Autographed copies of Lessons From the Field: A Common Sense pproach to Effective Hotel ales are available from The Rooms Chronicle site: www.roomschronicle.com, and from www.smartbizzonline.com and other industry sources.

All rights reserved by John Hogan. This column may be included in an upcoming book on hotel management. The opinions expressed in this article are those of the author and do not necessarily reflect the views of this publication.

John Hogan, a career hotelier and educator, is a frequent speaker and seminar leader at many hospitality industry events. He is a successful senior executive with a record of accomplishment leading organizations at multiple levels. His professional experience includes over 35 years in hotel operations, food & beverage, sales & marketing, training, management development, consulting, management, including service as Senior Vice President of Operations.

Your browser may not support display of this image. http://www.linkedin.com/in/drjohnhoganchache

Expertise and Research Interest

• Sales Management and training
• Turn-around and revenue management
• Professional Development & Customer Service
• Hospitality Leadership and Executive Education
• Making Cultural Diversity Real
• Accreditation & Developing Academic Hospitality programs

If you need assistance in any of these areas or simply an independent review or opinion on a hospitality challenge, contact me directly for a prompt response and very personalized attention.

As the principal in an independent training and consulting group, John Hogan has served associations, management groups, convention & visitors’ bureaus, academic institutions and as an expert witness. He has managed hotels with Sheraton, Hilton, Omni and independents, and created and launched a blended learning system for the world’s largest hotel chain in his tenure at Best Western International. He has conducted more than an estimated 3,200 workshops and classes in his career, including service as an adjunct faculty member for 20 years at three different institutions.

Hogan’s professional experience includes over 35 years in operations, service, sales and marketing, training, management development and asset management on both a single and multi-property basis, including service as Senior Vice President of Operations in a specialty medically oriented hotel brand for eight years.

He holds a number of industry certifications (CHA, CHE, MHS, ACI) and is a past recipient of the American Hotel & Lodging Association’s Pearson Award for Excellence in Lodging Journalism, as well as operational and marketing awards from international brands. He has served as President of both city and state hotel associations.

He has served on several industry boards that deal with education and/or cultural diversity and as brand liaison to the NAACP and the Asian American Hotel Owners’ Association with his long-term involvement in the Certified Hotel Owner program.

Service to the Industry and Hospitality Education includes working with the Educational Institute Certification Commission of the AH&LA, the Hospitality Industry Diversity Institute, the AH&LA Multicultural Advisory Council, the Accreditation Commission for Programs in Hospitality Administration, the Commission for Accreditation on Hospitality Management Programs, the AH&LA and AAHOA Education and Training Committees, the Council of Hotel, Restaurant and Institutional Educators (CHRIE), the International Hotel Show and the Certified Hotel Owner program for the Asian American Hotel Owners’ Association.


For more information, please visit John's TNNW Bio.

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LESSONS FROM THE HOTEL INDUSTRY: The Evolution of Best Practices in Hospitality and Tourism, Part 2

LESSONS FROM THE HOTEL INDUSTRY: The Evolution of Best Practices in Hospitality and Tourism, Part 1

Lessons from the Hotel Industry with Dr. John Hogan, CHE CHA MHS

Recognizing that future success in hospitality and tourism will come from different practices if the industry is to continue to evolve and grow in the next generation.

The hospitality industry in many ways has become a mature industry, with innovations primarily in the technology side. Tourism, by contrast, can continue to evolve as the next generations embrace the traditional venues, while also seeking alternative locations and interests such as volunteer tourism, environmentally-related sites and humanitarian causes.

"As you climb the ladder of success, be sure it's leaning against the right building."
H. Jackson Brown, Jr.

I believe the five most important service management issues that will impact the hospitality and tourism industry over the next decade are the following:

1. Addressing the declining profit margins of the traditional product-based hospitality industry through service management.


2. Linking service delivery as a management tool to overcome the commoditization of the mature hospitality industry.


3. Recognizing that global competition will continue to intensify, requiring the executives of the major international brands to focus specific efforts on cultural diversity of service and the guest experience.


4. Developing an inherent service culture that truly engages all associates via ongoing communication and recognition that include associates’ perspectives and insights. This in turn increases their loyalty, efforts and professionalism.


5. Employing specific service management tools and initiatives that cause a shift in guests’ perception of their experience from one of neutral satisfaction to an attitude of loyalty, preference and passion for the total experience. These inspired guests will be measurably more inclined to return to a hotel or restaurant than those are just satisfied with the experience. The opportunity for positive word of mouth recommendations will be significantly higher. Business growth will be an outcome.

I have been involved with delivering customer service, as a hotelier with international brands, an educator working with a range of stakeholders, and as a consultant assisting clients to improve their processes and results. Using my expertise and interests, I offer the following as major areas of research and execution to address those issues in global trends and competitors.

Primary
Identify those organizations that are address or ignore service management as part of business strategy, including best practices.

• Best in class (20%) — Service management practices identified as the best today and significantly superior to industry norms. These might include hotel companies like Taj Hotels, Four Seasons and Hampton Inns. Tourism centers would include Disney and Dubai. Restaurant companies such as Kimpton Restaurant group and ARAMARK would be defined by level of service.


• Industry norm (60%) — Service management practices that characterize the average or norm.


• Dawdlers (20%) — Service management practices that are appreciably behind the industry norm.

Secondary
Service management as a business strategy necessitates a new set of performance metrics that better reflect the total guest experience.

Companies with a tactical approach that focus on internal performance metrics miss capturing the “whole guest experience.” Best-in-Class executives balance internal with guest-focused metrics like guest history, one-time problem resolution, reservation guarantees and guest intent to return.

Tertiary
Identify and discuss the challenging issues facing the industry in order to prosper long-term.

Whether a hospitality and tourism business is trying to move from “Dawdler” to “Industry Average,” or “Average” to “Best-in-class,” they should consider the following potential building blocks in taking service management to the next level:


Dawdler

• Measure service profitability, customer retention and per guest revenue regularly.


• Conduct systematic planning, forecasting, and alignment of service resources.

Industry Norm

• Appoint a senior executive to lead the organization’s service commitment.


• Expand associate training to include all levels as fully committed to service management.


• Adjust business processes to better anticipate guest needs and expectations.

Best in Class

• Intensify preventative maintenance.


• Expand associate training and mentoring.


• Leverage successful service delivery to grow revenues.


• Tie associate compensation to financial, operational and customer retention goals through balanced scorecards.

Part 2 of this series will offer practical hands-on recommendations for relevant service management for mid-career hospitality and tourism professionals in their continuing development.




What are you doing at your hospitality business today?

Feel free to share an idea for a column at johnjhogan@yahoo.com anytime or contact me regarding consulting, customized workshops, and speaking engagements.

And remember, we all need a regular dose of common sense.

Autographed copies of LESSONS FROM THE FIELD – a COMMON SENSE APPROACH TO EFFECTIVE HOTEL SALES are available from THE ROOMS CHRONICLE www.roomschronicle.com, www.smartbizzonline.com and other industry sources.

All rights reserved by John Hogan and this column may be included in an upcoming book on hotel management. The opinions expressed in this article are those of the author and do not necessarily reflect the views of this publication.

John Hogan, a career hotelier and educator, is a frequent speaker and seminar leader at many hospitality industry events. He is a successful senior executive with a record of accomplishment leading organizations at multiple levels. His professional experience includes over 35 years in hotel operations, food & beverage, sales & marketing, training, management development, consulting, management, including service as Senior Vice President of Operations.

Your browser may not support display of this image. http://www.linkedin.com/in/drjohnhoganchache

Expertise and Research Interest

• Sales Management and training
• Turn-around and revenue management
• Professional Development & Customer Service
• Hospitality Leadership and Executive Education
• Making Cultural Diversity Real
• Accreditation & Developing Academic Hospitality programs

If you need assistance in any of these areas or simply an independent review or opinion on a hospitality challenge, contact me directly for a prompt response and very personalized attention.

As the principal in an independent training & consulting group, John Hogan has served associations, management groups, convention & visitors’ bureaus, academic institutions and as an expert witness. He has managed hotels with Sheraton, Hilton, Omni and independents, and created and launched a blended learning system for the world’s largest hotel chain in his tenure at Best Western International. He has conducted more than an estimated 3,200 workshops and classes in his career, including service as an adjunct faculty member for 20 years at three different institutions.

Hogan’s professional experience includes over 35 years in operations, service, sales & marketing, training, management development and asset management on both a single and multi-property basis, including service as Senior Vice President of Operations in a specialty medically oriented hotel brand for eight years.

He holds a number of industry certifications (CHA, CHE, MHS, ACI) and is a past recipient of the American Hotel & Lodging Association’s Pearson Award for Excellence in Lodging Journalism, as well as operational and marketing awards from international brands. He has served as President of both city and state hotel associations.

He has served on several industry boards that deal with education and/or cultural diversity and as brand liaison to the NAACP and the Asian American Hotel Owners’ Association with his long-term involvement in the Certified Hotel Owner program.

Service to the Industry and Hospitality Education includes working with the Educational Institute Certification Commission of the AH&LA, the Hospitality Industry Diversity Institute, the AH&LA Multicultural Advisory Council, the Accreditation Commission for Programs in Hospitality Administration, the Commission for Accreditation on Hospitality Management Programs, the AH&LA and AAHOA Education and Training Committees, the Council of Hotel, Restaurant and Institutional Educators (CHRIE), the International Hotel Show and the Certified Hotel Owner program for the Asian American Hotel Owners’ Association.


For more information, please visit John's TNNW Bio.

---

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LESSONS FROM THE HOTEL INDUSTRY: The Evolution of Best Practices in Hospitality and Tourism, Part 1

LESSONS FROM THE HOTEL INDUSTRY: Where is your desk?

Lessons From the Hotel Industry with Dr. John Hogan

Storytelling is a marvelous way to communicate a message in a very personal way and I am introducing the message of managerial effectiveness via one of the best stories to date on the hospitality industry.

In 1965, author Arthur Hailey wrote one of his best-known novels, HOTEL . This story was deep in detail, background, theme and character development. It offers reasonably accurate insights over a 5-day period in the life of an early 1960s independent, upscale hotel in New Orleans that is facing many challenges. The book addresses a number of American civil rights issues of the period, as well as contradicting stories of staff loyalty on one hand and dishonesty on the other. It tackles a number of business issues that remain current today, as well the matter of brand expansion in today’s hotels versus operating as an independent. .

“The leaders who work most effectively, it seems to me, never say "I." And that's not because they have trained themselves not to say "I." They don't think "I." They think "we"; they think "team." They understand their job to be to make the team function. They accept responsibility and don't sidestep it, but "we" gets the credit. This is what creates trust, what enables you to get the task done. Peter Drucker

Lessons for Hospitality Managers

Effective leaders today still deal with many of the scenarios in Hailey’s HOTEL, and many more in the way of amenities, technology, transportation and training. The constant balancing act of “high touch” and “high tech” often comes down to visibility, accessibility and the ability to listen.

In the book and movie version of HOTEL, the hotel manager (or at least the manager on duty) was stationed in the lobby at an oversized desk. The first one of these I personally viewed was at the Statler-Hilton in Boston and presumably, the location was to be able to deal with situations that might arise that required special attention. The “tradition” of availability continued through the days of large full service hotels, but took a turn to the “back office” with the introduction of rooms only and smaller properties in the 1960s-1990s.

As my first hotel experience was at an older resort with many traditions, I came to appreciate both the manager and the innkeeper as host and problem solver. I personally always wanted a general manager’s desk like the one in HOTEL – you may recall it was located on the mezzanine, with a large window overlooking a very busy lobby in a “grand old and distinguished” property. Well, I am still looking for that special location, but the more important notions of visibility and accessibility continue to interest me.

How do most hoteliers today deal with those issues of visibility and accessibility? Most of us do not have much of a choice in location of desk or office, but in observations and conversations with many professionals in a wide range of property types and brands, I have had the opportunity to identify a number of creative variations in manager visibility and accessibility that I wanted to share.

Mel Bettcher, a career Hyatt Manager, at one point was assigned to the Hyatt in Memphis. I recall trying to reach him one hot summer and the answer was always: “he’s not in his office, but he is on property.” When I finally reached him, in conversation he said that the air conditioning in his office was not working very well. When I asked why he did not get it repaired, he commented that while it would not cost much, he might have the temptation to spend too much time in his office if it was too comfortable and he intended to spend his time with his guests and staff.

Dave Lagarce opened the 1^st Embassy Suites in Tennessee. Dave had a desk in the lobby and I recall asking him how “he ever got any work done”, having so many potential interruptions. He smiled and said the lobby location forced him to be more focused. He had two staff managers with the title and responsibility of assistant general manager and each had certain paperwork assignments. Through this delegation of some important work that allowed them to learn the systems, he was now available to deal with other “people” matters.

These managers reached the conclusions that the important “work to be done” included some reports and paperwork, but that the arrangement allowed all of them to balance work loads and be attentive to the needs of both staff and guests/customers.

Tom Peters, author of many books and programs on change and improvement, maintains that effective managers in the work place must spend 70% of their time OUTSIDE of their offices. In his books, seminars and collateral material, he frequently offers examples of successful companies that do not build large corporate home office staffs that spend what seems like years creating manuals and policies, but rather spend their corporate officers’ time in the field. He quotes examples from Apple Computers to Wal-Mart that have jumped leap years ahead of their competitors by availability, visibility and responsiveness to staff and customers by active listening.

Examples in our industry include companies that have “in – touch management:

1. Annual job-switch days, where senior executives assume the job, uniform and assignments of hourly staff in operating hotels for a day. The hourly staff spends a day shadowing the executives on another day, with the requirement to explain all that they face and the potential solutions to issues. Respect on both sides increases.
2. Regular (weekly or monthly) staff “talks” with a senior manager and a group of hourly staff from different departments to discuss ideas and opportunities in their hotel.
3. Regular staff meetings of the entire hotel, to share information on successes, opportunities, challenges, and trends. Two way communication jumps after the 2^nd or 3^rd session.
4. Newsletters for staff and guests alike that feature “people”. Look at Southwest Airlines for examples of success in a challenging industry.
5. Department or hotel-wide mini-celebrations that show appreciation for completing a preventative maintenance project ahead of schedule, or a perfect sell-out or reaching a particular goal.
6. The now recognized MBWA (Management by Walking Around) practice of being where the people, problems and profit come from – in the actual business, and not in the office.
7. Using breakfast or social hours as more than a give-away, but as a real communication.
8. Calling at least 3 in house guests and 3 guests from last week daily to personally thank them for their patronage and to ask for ways to make their next visit more enjoyable. The good-will is unbelievable!
9. Semi-annual “state of the hotel” communications, which formally advise the staff how things are going. Executives share the information on each of the three shifts. The recognition and appreciation is incredible.
10. Ongoing recognition programs. Associate of the Month programs are well intentioned, but have come to mean less than previously. There are incentive and appreciation programs available for staff at all levels that pay dividends through commitment and loyalty.

Many smaller hotels have certain levels of “in touch management” because of their streamlined size and because they do not have large numbers of support staff. There are many more ideas that can be used in all sizes of hotels.

We must remember to regularly reinvent ourselves and avoid doing things the way we always have because that way is easy or it used to work. Technology continues to evolve and improve, and those improvements that remove some of the people contact make the need to retain the “high touch” of hospitality more important than ever.

For more information, please visit John's TNNW Bio.

Where is your desk?

What are you doing at your hotel today?

Feel free to share an idea for a column at johnjhogan@yahoo.com anytime or contact me regarding consulting, customized workshops, speaking engagements ………….

And remember – we all need a regular dose of common sense.

Autographed copies of LESSONS FROM THE FIELD – a COMMON SENSE APPROACH TO EFFECTIVE HOTEL SALES are available from THE ROOMS CHRONICLE www.roomschronicle.com, www.smartbizzonline.com and other industry sources.

All rights reserved by John Hogan and this column may be included in an upcoming book on hotel management. The opinions expressed in this article are those of the author and do not necessarily reflect the views of this publication

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LESSONS FROM THE HOTEL INDUSTRY: Where is your desk?