Carol Verret Consulting
How Soft Is Your Hotel's
Carol Verret / April 2001
|The Federal Reserve planned for a
‘soft landing’ of the economy, the ‘impact ‘, however, has been softer
for some than for others. Those hotel sectors most impacted
are those that were in areas dominated by tech companies and extended stay
and limited serve products that were in overbuilt markets. While
pilots say that ‘any landing you walk away from is a good one’, merely
surviving isn’t sufficient for owners who have been used to double-digit
revenue growth for the last five years.
PriceWaterhouseCoopers is predicting the slowest rate of REVPAR growth since 1992 at 2.8%, which is just above the rate of inflation (HotelOnline, March 20, 2001). Given the rising cost of energy, that puts many hoteliers at a deficit even if they just maintain current market share.
The summer of 2001 will probably hold challenges that many hotel managers and sales departments haven’t dealt with before. Instead of managing the yield produced by high demand they will need to generate demand from market segments impacted by lay-offs, high gasoline prices and declining disposable income from deflated stock portfolios. Generating demand is a skill that hasn’t been required in most markets for several years.
The addition of new product and the proliferation of brands stimulated by increasing demand over the last few years also mean a decline in franchise contribution for many hotels. Ask not what your franchise can do for you – go look in the mirror and figure out what you can do for your hotel in the short term.
How can you prepare your property to maintain market share in these
In all likelihood, it is going to be a tough summer for a lot of hoteliers. Minimize the damage and maintain or increase your market share against a competitive set that may be ‘asleep at the switch’ until it is too late. Be proactive and flexible – the race belongs to those that are quick to respond to changing conditions.
Carol Verret and Associates Consulting and Training offers training seminars and consulting services to the hospitality industry. Carol’s latest training product is a comprehensive customer service training system, ResultsWOW. For a complete description of her services, log onto her web site at http://www.carolverret.com/ or email her at firstname.lastname@example.org.
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|Also See:||The ‘Value Proposition’: Marketing Yourself to Prospective Employees / Carol Verret / January 2001|
|Generation Y: Motivating and Training a New Generation of Employees / Carol Verret / November 2000|
|Why Customer Service Seminars Don't Work / Carol Verret / October 2000|
|Creating a Culture of Customer Service / Carol Verret Consulting and Training / Sept 2000|
|FAT, DUMB AND HAPPY – The Seasonal Boom and Bust Cycle / Carol Verret / August 2000|
|Surf's Up - Ride the Wave or Miss the Boat -The Effective Use of Technology in Hotel Sales / Carol Verret / July 2000|
|Measuring Effectiveness of Hotel Sales Departments / Carol Verret / June 2000|
|Hotel Sales Training - The Need for Immediate Results / Carol Verret/ May 2000|