Why do companies give up on customer service as they grow?

Everyone experiences second-rate service from a trustworthy brand at some point. Some recent examples of large brands plagued with a reputation for poor service include wireless service providers, airlines, auto manufacturers and Internet service providers. One need only look at Twitter feeds to see the angst that their customers are feeling. In the airline industry, United Airlines seems to be getting the brunt of customer complaints and media coverage as of late due to the infamous dragging of a passenger from one of their flights that went viral. Now, they are once again in crisis management mode because a United employee tried to wrestle an 18^th-century violin away from a passenger who wanted to carry on the rare and valuable violin but was being forced to check it in.

Duty system can promote healthier attitudes towards alcohol

The ALMR has responded to HM Treasury’s consultation on alcohol structures encouraging the Government to adopt an innovative alcohol duty system that encourages products to be sold and consumed within the supervised environment of pubs, bars and restaurants.

HM Treasury has been consulting on new bands for cider, perry and still wine to encourage incentives for the production and consumption of lower strength products. The ALMR argues that this would provide greater choice for the sector’s customers and support industry initiatives to facilitate healthier lifestyles.

The organisation has also highlighted future opportunities to reform the duty system, either through a revision of the current EU Directive or post-Brexit. This could include differential duty rates, allowing lower duty to be charged on drinks sold through the on-trade.

ALMR Chief Executive Kate Nicholls said: “New bands for lower-strength wines, ciders and perries could reduce costs for both producers and retailers and help stimulate demand for high quality on-trade drinks. Brexit provides the opportunity for a more creative look at the duty regime to further incentivise innovation.

“We have evidence to show that lower-strength products are predominantly consumed in the supervised environment of a pub or restaurant. If the Government is serious about promoting healthier attitudes towards alcohol, a tactic would be to promote responsible and supervised consumption within our venues.

“High quality products that come with a lower strength and reduced price tag could help precipitate a shift in drinking habits that aids businesses and supports the Government’s plans to promote healthier lifestyles.”

Source: http://www.hospitalityandcateringnews.com/2017/06/duty-system-can-promote-healthier-attitudes-towards-alcohol/

1,190 Independent Restaurant Owners Share Their Thoughts on Over 100 POS System brands

RestaurantOwner.com released the 2017 POS Survey Report today. The report summarizes input gathered from 1,190 independent restaurant owners from around the world regarding over 100 different brands of POS systems, focusing on several critical aspects including cost, installation and support experience, and features. The results of this survey provide unique insight into the POS system market and emerging trends, all of which are valuable to independent restaurant owners.

The average cost for a restaurant POS system has notably decreased since 2012. In 2012, the average expenditure for a POS system was just over $18,000, as opposed to $13,344, currently.

The top seven POS solutions were Aloha POS, MICROS, Digital Dining, Clover, Adelo POS, Future POS, and POSitouch. These top seven POS systems accounted for 47.5% of the market. Beyond the top seven, all other POS brands each accounted for less than 3% of the market share.

We identified a shift toward cloud-based systems and POS solutions offered by credit card processors. Clover, Dinerware, Harbor Touch, and Square were the top credit card processor provided POS solutions, accounting for nearly 11% of total market share.

Despite the increased use of cloud-based and mobile systems, less than 10% of independent restaurant owners indicated they use pay-at-the-table devices. Moreover, only 31% of restaurants reported using EMV compliant POS systems. This is particularly noteworthy considering the fraud liability shift that took place in October 2015, mandating that merchants upgrade to EMV chip technology or accept increased liability for fraudulent transactions.

Improvements in plug-and-play components, increased Wi-Fi capability, and a tech savvy labor pool are allowing many restaurant owners to opt for self-installation and remote support. As a consequence, only 74% reported using an authorized POS vendor for programming, training, and support.

Source: http://hospitalitybusinessnews.com/20170127040/1190-independent-restaurant-owners-share-thoughts-100-pos-system-brands

Level Up(grade): W Hotels Debuts Hotel Industry’s First-Ever Video Game To Celebrate The Opening Of W Bellevue

To power up the forthcoming opening of W Bellevue, W Hotels Worldwide, part of Marriott International (NASDAQ: MAR), is taking the hotel guest experience to the next level – literally. With the brand’s newest hotel set in the heart of one of the country’s renowned tech hubs, W is excited to press play on the hotel industry’s first ever video game, Belle the Bear, on June 15^th. W fans and tech-heads alike can play their way to W Bellevue virtually on opening day, with real-life rewards for top scorers in the United States.

Four Seasons owner Provenance Land may sell up to 50 per cent stake to global investors

India’s hospitality industry may be one of the heavily taxed sectors in the country, but that has not deterred global investors from looking at key properties in the country.

According to a media report, Brookfield Asset Management and GIC of Singapore are vying to buy 50 per cent stake in Provenance Land that owns Four Seasons hotel and residences in Mumbai.

The deal is likely to value Provenance Land at over Rs 2,000 crore and could see Adarsh Jatia offloading between 26 per cent and 49 per cent stake, said a report in The Times of India.

Provenance Land has been constructing Four Seasons-branded ultra luxury residences at the 4.5-acre property located at Worli.

If the deal fructifies, the funds from the stake sale will be used for the company’s plans to develop branded luxury homes and offices adjoining the Four Seasons hotel, the TOI report said.

There were reports that Provenance was constructing a five-storeyed second tower with 26 luxury residences for outright sale with a price tag ranging from Rs 30 crore to Rs 100 crore, the TOI report added.

According to a recent report by KPMG, India’s hospitality sector is expected to grow at 16.1 percent CAGR to reach Rs 2,796.9 crore in 2022. The sector contributes significantly to indirect tax revenue at the state and central level which includes revenues from VAT, Service Tax, and Luxury Tax etc.

As per the GST Council’s decision all hospitality products above Rs 5,000 has been termed as luxury, drawing flak from the industry. The GST Council said along with rooms, even dining at restaurants at 5-star hotels will invite GST at the rate of 28 per cent.

Experts are of the opinion that a higher GST rate on the hospitality sector could make the country’s tourism products uncompetitive in the region. The industry also fears major events, congresses, conferences, etc. could give a miss to India in coming times.

Source: http://ehotelier.com/global/2017/06/15/provenance-land-may-sell-50-per-cent-stake/

Getting Your SWOT Analyses Right

Most of us have probably taken part in a whole boatload of SWOT analyses. Certainly, in my time, companies and staff have shared numerous SWOT analyses with me. They all seem rather basic, Marketing 101 kind of stuff. Yet, just because SWOT analyses are basic does not mean that most companies carry them out well, or that they even get them right.

Just How Unique Are Luxury Hotel Guests? – By Marissa Rasmussen

Our latest hotel report, From Search Engine to Booking Engine, in collaboration with Google, garners a view of the hotel guest’s journey over the entire path to booking. However, not every guest and their pre-booking behaviors are alike. Here we highlight our findings on the luxury hotel guest and offer ways hoteliers can influence these guests on their path to booking:

1. On average, luxury hotel guests conduct more searches than more economical segments.

A luxury hotel booking is usually a more expensive purchase, and these travelers want to make sure they are making the best decision. Ensure you are staying top of mind during these extra searches by creating ads that reassure them that your luxury hotel will create the most enjoyable experience for them.

For example, Solage Calistoga does a great job showcasing their luxury property through their ads while reassuring guests that their vacation will be a getaway.

2. Luxury hotel guests start their hotel planning much further in advance than other segments.

60+ days out, luxury travelers perform more searches than other segments. Consider how your hotel segment impacts the path to purchase so you can increase your brand’s presence at moments when travelers are likely to be influenced. For example, if you know your luxury guest will begin searching 60+ days before arrival, start impressing them with ads while they are at the top of the funnel, and continue to nurture them throughout their entire path to book.

Loews Hotels “Room You Need” campaign did a great job of reaching travelers at each stage in the funnel by using certain Instagram photos taken by guests as the basis for its print and digital ads. It was a way of showcasing real-life images of authentic guest experiences at Loews, and that’s the perspective that a potential guest wants to see.

3. Luxury hotels see lower shares of mobile searches, averaging 45% of all searches, but mobile queries are growing rapidly with 23% YOY growth.

It may not be surprising that mobile searches are on the rise since smartphones have enabled us to have information at our fingertips no matter where we are. According to Skift, 40% of global travelers use mobile devices to shop for travel. To capture these luxury travelers early on in their planning and dreaming phases, implement a multi-platform strategy: prospect and retarget users with display, mobile, YouTube, Facebook, native ads, and more.

Conrad ‘Stay Inspired’ initiative turns team members into curators of 1, 3, and 5 hour experiences

Conrad Hotels & Resorts announced the launch of Stay Inspired (www.stayinspired.com), a global, brand-wide initiative that marks a cultural shift and overhauls the way the brand trains its team members as storytellers of their destinations. At each one of its 24 global properties, Conrad now offers guests who seek out inspired experiences a more customized and curated collection of 1, 3, and 5 hour experiences available through Conrad Concierge mobile app and at StayInspired.com.

Spearheading the Stay Inspired initiative is Nilou Motamed, the luxury brand’s first ever Director of Inspiration, who is responsible for developing and implementing the Stay Inspired vision and what it means for travelers. Nilou joins Conrad having previously served as Editor-in-Chief of Condé Nast’s digital food brand, Epicurious, and Features Director and Senior Correspondent for Travel + Leisure.

As Director of Inspiration, Nilou has traveled to Conrad properties worldwide to create the initial series of Stay Inspired experiences. Catering to the modern traveler’s desire to merge work, life, and pleasure, StayInspired.com now offers experiences in convenient 1, 3, and 5 hour increments, or what the brand is calling the Conrad 1/3/5. Each Conrad 1/3/5 recommendation reflects an inspired view into each destination covering food, shopping, art and design, culture, family, and adventure.

“Today’s luxury traveler wants to discover destinations where they can be truly inspired. So we are shifting how not only our concierges communicate and connect with our guests, but all of our team members,” said John T.A. Vanderslice, global head, Conrad Hotels & Resorts. “Through our partnership with Nilou, we have trained our team members and empowered them to make thoughtful recommendations within our destinations, stepping away from the standard transactional relationship between a concierge and a guest. We now have become more like storytellers.”

StayInspired.com, accessible via mobile device through the Conrad Concierge mobile app, offers a modern luxury traveler on any schedule the ability to browse activities in 1, 3, and 5 hour itineraries, or by interests. Using StayInspired.com, travelers can now save and share their Conrad 1/3/5 itineraries, access custom content in the form of photos, videos, and maps, or book a room and an experience through the hotel’s concierge. On property, concierges will be equipped with tablet devices to guide guests through the itineraries.

“Guests want to use whatever free time they have while traveling to discover something new. They want to find those hidden gems that are off the beaten path and that can’t be found in the pages of a guidebook,” said Nilou Motamed, Director of Inspiration, Conrad Hotels & Resorts. “This collection called the Conrad 1/3/5 curates content and experiences in a way that aligns with the way our guests live their lives.”

Chip Eng Seng partners with Park Hotel Group to buy Maldives resort

Singapore construction and property group Chip Eng Seng Corporation Ltd will make its foray into the Maldives together with Singapore-based Park Hotel Group with the acquisition of Kodhipparu Island Resort for US$65 million. JLL was exclusive advisor on behalf of the resort owner, Kodhipparu Investment Private Limited.

Located in the North Malé Atoll, the resort has 120 villas and is a 15-minute speedboat ride from Malé International Airport. Set to open in second quarter of 2017, the resort is under development by world-renowned hospitality design firm Hirsch Bedner Associates, and will offer two restaurants, a harbour beach club, an infinity pool and bar as well as comprehensive spa facilities. The Resort will be managed by Park Hotel Group as Grand Park Kodhipparu, Maldives as the Group enters Indian Ocean’s most dynamic hotel market.

“As an investment destination, the Maldives provides a transparent policy-making environment and generous incentives for foreigners, including full ownership rights, legally-backed investment guarantees and the ability to fully repatriate profits. This paired with its positive economic outlook is attracting Asian investors seeking to enter the international market,” says Nihat Ercan, Executive Vice President, JLL Hotels & Hospitality Group, Asia.

“As a result, we’re starting to notice a rising trend of Southeast Asian, and in particular Singaporean property developers, who are drawn to the market because it offers high yields underpinned by healthy trading fundamentals.”

Excluding the Kodhipparu sale, the Maldives has seen more than US$120 million in investment transactions so far in 2016. Tourist numbers to the island nation reached 1.23 million in 2015, a 2.4 percent increase on the previous year according to JLL’s report Hotel Destinations Indian Ocean.

This deal will mark the ninth resort JLL has sold in the Maldives since 2012, taking the group’s resort sales in the archipelago to US$500 million and over US$600 million in the Indian Ocean region. In February 2016, JLL also advised on the sale of Zitahli Kuda-Funafaru Resort and Spa to Singapore-listed Roxy Pacific Holdings Limited.

Source: http://ehotelier.com/news/2016/10/10/chip-eng-seng-partners-park-hotel-group-buy-maldives-resort/

Hotel Food and Beverage Trends

In past articles, PKF Hospitality Research (PKF-HR) has labeled the period 2000 to 2010 as the “lost decade” for the U.S. lodging industry.  During this volatile period, hotel revenues remained virtually flat through two major recessions and one extended period of prosperity.  On the surface, it appears that hotel food and beverage (F&B) revenue followed a similar pattern.

To understand recent trends in hotel food and beverage departments, PKF-HR studied the financial performance of hotel restaurants, lounges, and catering departments for the period 2000 to 2010.  The information came from a same-store sample of full-service hotel operating statements taken from PKF-HR’s Trends® in the Hotel Industry database.  These hotels average 413 rooms in size, and offer multiple F&B outlets and extensive banquet facilities. Hotel data was estimated for 2010.

Total hotel food and beverage revenue decreased slightly from 2000 to 2010 within the study sample.  Measured on a compound annual basis (CAGR), F&B revenue declined 0.6 percent.  This is comparable to the 0.5 decline in total hotel revenue experienced by these same properties.  However, when analyzed on a dollar-per-occupied room basis, hotel F&B revenue increased 1.6 percent on a compound annual basis during the decade.  This is significantly greater than the 0.1 percent rise in total hotel revenue per occupied room.  During the study period, the number of occupied rooms declined 0.5 percent CAGR.

The relative stability of F&B revenue per occupied room can be partially explained by the ability of hotels to attract local patrons to their restaurants, lounges, and catering facilities.  This is especially evident during the recessionary years of 2001, 2002, 2003, and 2009 when the declines in food and beverage revenue were less than the decreases observed in rooms revenue.

Conversely, during the prosperous years of 2004 through 2007, total hotel revenues grew stronger than F&B revenues.  During these years, stout increases in both occupancy and average room rates boosted total hotel revenue.  This implies that the ability of hotel managers to raise room rates is greater than their ability to increase F&B prices.

Sources of F&B Revenue

Averaging 413 rooms, it is not surprising that banquet related revenue was the greatest source of F&B revenue for study sample in 2010.  The combination of catering revenue, public room rental income, audio visual fees, and banquet service charges accounted for an estimated 55.5 percent of total F&B department revenue.  Other sources of F&B revenue included restaurants (30.2%), lounges (5.6%), and room service (4.4%).  It is interesting to note that the combined beverage sales within the hotel restaurants were twice as great as the liquor revenue generated at the bars within these properties. Whole bottle wine sales in the restaurants partially explain this disparity.

Due to changes in the Uniform System of Accounts in the Lodging Industry(USALI) it is not possible to equitably compare changes in F&B revenue by source over the 2000 to 2010 period.  However, changes in revenue can be estimated for 2009 to 2010.

From 2009 to 2010, total F&B revenue increased 8.6 percent.  This compares favorably to the 6.5 percent increase in total hotel revenue for the study sample during the same period.  The greatest increases were observed in beverage revenue (9.4%), followed by food revenue (9.1%) and other F&B revenue (6.2%).  Other F&B revenue consists of public room rental, audio/visual, and service charge income.  Of note is the fact that the majority of growth in beverage revenue came from catering events as opposed to the hotel bars.

Expenses and Profits

Food and beverage profitability is dictated by management’s ability to control the prime costs of labor and costs of goods sold.  From 2000 to 2010, the prime costs of F&B departments in our sample averaged 64.3 percent of total department revenue.  Labor costs during this period averaged 43.4 percent, while the cost of goods sold averaged 20.9 percent.  This cost of goods sold number includes expenses associated with the other F&B revenue sources.  If you examine the combined costs of goods sold for just food and beverage sales, the average ratio rises to 29.1 percent.

Hotel departmental profit margins averaged 26.4 percent from 2000 to 2010.  In accordance with the USALI, this ratio is calculated before undistributed expenses such as marketing, maintenance, and utilities.  Once again, the depth of the recession becomes evident.  The lowest level of F&B departmental profitability was experienced in 2009 (21.6%), while the greatest profit margin was observed in 2000 (32.6%).

Haves and Have Nots

Food and beverage operations within the lodging industry have become a story of haves, and have nots.  The vast majority of new properties and brands entering the U.S. lodging industry offer either limited, or no F&B service at all.  On the other end of the spectrum are full-service hotels with multiple restaurants, lounges, and banquet facilities.  For these full-service hotels, the offering of F&B is not just a source of revenue, but an amenity used to position the property within the marketplace.

Losses within the F&B department are no longer tolerated by owners. F&B managers struggle to contain costs and grow revenues.  The ability of management to attract local patrons, boost catering revenue, and increase beverage sales within their restaurants are examples of successful tactics that have generated profitable revenue.

Source: http://hospitalitybusinessnews.com/2011066172/hotel-food-and-beverage-trends