News for the Hospitality Executive |
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Lessons from the Field
A Common Sense Approach to Success in the Hospitality Industry |
By Dr. John Hogan, CHA MHS CHE, May 5,2009 |
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Customer Relationship Management Requires a Blending
of High Tech and High Touch for Optimal Results
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By Dr. John Hogan CHE CHA MHS
May 5, 2009 A lesson I have learned in my career is that blending high tech with high touch is required today for optimal results. Using guest history is not high tech � it is the fundamentals of many
successful hoteliers today, ranging from Bed & Breakfast operators
to gaming to resorts to business oriented properties.
The Durbin reference came at a time when technology was basic, but the focus was on using information available. With all the sophisticated software available today in CRM (Customer Relationship Management) and other property management systems, it is a shame that the only thing too many hotel owners and sales managers know or act on about their repeat regular guests is their preferred method of payment or perhaps the type of accommodation the guest favors. Resort and casino operators for years tracked regular customers and knew not only their preferred accommodations, but also their client�s personal taste in décor, food and beverage favorites and support services. The first hotels I worked in were independent resorts in a small Vermont town, yet the owners and managers maintained solid records and a strong system of regular communication with their regulars. Another prime example I have first hand knowledge of was one of the nation�s first all-suite hotels, built in Nashville, Tennessee. When it was in its prime, the five-star Spence Manor Hotel was rated as one of the more desirable hotels to stay at in the Nashville area, due to location, personalized service and privacy. (This property converted to into condominiums a number of years ago) The hotel�s success was not based totally on luxurious accommodations,
its unique guitar shaped swimming pool (built by country music legend Webb
Pierce), or location alone. Much of its long-term success was due to the
special attention given to all guests by Manager and Host Edna Bloodworth.
In the days before sophisticated technology, Edna would track every guest�s
preferences in a manual system.
Now this was a small hotel and would be called today a boutique-type hotel. The competitive set was dramatically different at that time and yet, I recall this independent hotel holding its own in the 1980s, even with significant newer competition and a recession. I noted at the time the success was substantially due to Edna and her master list of customer preferences in her regularly maintained files. We are well beyond that approach, but the intent remains the same � how to recognize regular clients and demonstrate your hotel�s appreciation of them. Building a customer list or database is crucial in all economies, but especially in periods of limited demand when many competitors primarily compete on the basis of price or room rate alone. A useful customer list or database allows you to make contact more often and become the automatic choice on return visits, as well as to encourage their recommendations to others. Using this list or database and reaching out is not high pressure, but hospitality at its heart - staying in touch. If your hotel has ignored its list or database because you were running high occupancies and growing ReVPAR over the past several years, it is not too late to establish or update one now. The more information you have about a guest, the more you can target their particular interests. You want to focus on their reason for being at your hotel, whether it is visiting the nearby university, or a medical center or the courthouse. If you have F&B facilities, one might promote meeting or banquet space, but targeting usually pays off. Reservations and registration cards already provide a basis of information , such as name, address and can be expanded to include email address and a cell phone number (especially if targeting a younger demographic). Using our PMS systems effectively means understanding and using Guest History.
I have personally heard a number of major hotel brand CEOs in the last six months express their sentiment that the successes in this period of economic uncertainty will come at the local level � from individual hoteliers giving that extra step of attentiveness in as many ways as possible. I believe the brands have the resources to help with marketing, advertising and reservation sourcing, but the winners will be those who combine high tech entrepreneurial savvy with the high touch sense of �hosting�. Who are your regular customers?
Please share an idea for a column or contact me regarding consulting, customized workshops or speaking engagements at [email protected] anytime. Autographed copies of LESSONS FROM THE FIELD � a COMMON SENSE APPROACH TO EFFECTIVE HOTEL SALES can be obtained from THE ROOMS CHRONICLE www.roomschronicle.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 frequently invited to participate at franchise meetings, management company and hospitality association industry events. He is a successful senior executive with a record of accomplishment in leading hospitality industry organizations at multiple levels, with demonstrated competencies as a strong leader, relationship builder, problem solver and mentor. He conducts mystery-shopping reviews of quality in operations and marketing, including repositioning of hotels. He writes weekly columns for a number of global online services (hotel online.com, eHotelier, 4 Hotels, Hotel Resource, etc) and has published more than 400 articles & columns on the hotel industry. He co-authored (with Howard Feiertag, CHA CMP) LESSONS FROM THE FIELD � a COMMON SENSE APPROACH TO EFFECTIVE HOTEL SALES, which is available from [email protected], ROOMS CHRONICLE www.roomschronicle.com and other industry sources. He resides in Phoenix, Arizona and expects to publish in 2009 his 2nd book based on his dissertation � The Top 100 People of All Time Who Most Dramatically Affected the Hotel Industry. Hogan�s professional experience includes over 35 years in hotel operations, food & beverage, 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 hotel brand for six 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. John�s background includes teaching college level courses as an adjunct professor at three different colleges and universities over a 20-year period, while managing with Sheraton, Hilton, Omni and independent hotels. He was the principal in an independent training & consulting group for more than 12 years serving associations, management groups, convention & visitors� bureaus, academic institutions and as an expert witness. He joined Best Western International in spring of 2000, where over the next 8 years he created and developed a blended learning system as the Director of Education & Cultural Diversity for the world�s largest hotel chain. 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. He has conducted an estimated 3,200 workshops and classes in his career. Expertise and Research Interest
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. http://www.linkedin.com/in/drjohnhoganchache |
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Dr. John Hogan, CHA MHS CHE
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