The EU's New Personal Data Regulation Could Put Your Hotel at Risk - Quickly Assess Your GDPR Liability With These 31 Questions.
Beekeeper - ·2h
Because of the EU-U.S. Privacy Shield approved by the EU Commission and U.S. Department of Commerce in 2016, U.S. companies will be held accountable to GDPR compliance standards and can be prosecuted in European courts, leaving U.S. companies exposed. Despite GDPR's quickly approaching enforcement date, it is reported that a surprisingly large portion of executive officers in the U.S. remain in the dark about the level of exposure and dire fiscal impact GDPR could have on their businesses.Amir Ameri, VP of Global Risk & Compliance at digital workplace technology company, Beekeeper, has compiled a list of 31 essential questions every global business leader must ask themselves to assess their company's readiness to meet GPDR compliance before May 2018.https://beekeeper.io/gdpr-compliance"Executives now face a sprint of thorough internal evaluations to revamp policies around the collection, storage, or usage of EU resident personal data. The financial implications of breaching GDPR are astronomical," says Ameri. "We recommend mapping all data assets and appointing dedicated Data Protection personnel on a full-time or contract basis to properly oversee the adoption of high-caliber data protection processes and technologies."On the heels of the EU-U.S. Privacy Shield designed to protect the transfer of personal data from Europe to the U.S., GDPR will have serious impacts that will cause a ripple effect worldwide - especially the travel and tourism industry. Hospitality companies not only need to be aware but also take the proper steps to meet GDPR compliance standards. Gabrielle Griffith, Director at compliance consultancy BPE Global, stresses the importance of internal due diligence across your organization ahead of GDPR's enactment."Any company doing business with EU entities is affected," Griffith states. "For example, global companies that maintain a website to solicit sales from potential EU customers will be subject to GDPR requirements."Furthermore, Griffith urges global organizations to see these regulations as an opportunity to elevate and align Corporate Compliance."We challenge global companies to look at the new GDPR regulations as an opportunity to align Corporate Compliance at a high level. There are several sectors of international compliance for global companies: trade, antitrust, anti-corruption...GDPR compliance is the newest learning curve," Griffith says. "Global companies need to scale and train immediately to ensure seamless GDPR compliance come May 2018. Companies must develop an offensive strategy that streamlines all areas of your company's compliance."With GDPR's compliance deadline just around the corner, it is crucial that all global companies demonstrate rigorous investment in the personnel and policy changes required to securely store and manage personal data. A cross-organizational security assessment will not only keep your business GDPR compliant, but also work to reduce the risk of a future breach.
The first thing you need to know about reading a hotel financial statement is there are basically 2 different statements that you will want to get comfortable with. The two different statements are the income statement, some call it the P&L for profit and loss statement and the second in the balance sheet. Now I know what you're thinking, balance sheets are for the accounting types and they are complicated. Nothing could be further from the truth and I am going to give you a new understanding and share a secret about the balance sheet and the relationship to the P&L.One thing to always keep in mind is the fact that many miss. It's the existence of a the 11th addition of the uniformed system of accounts for the lodging industry.
skift.com - Destinations - 25 September 2017
Travelers from eight countries will face restrictions on entry to the U.S, ranging from a total ban to more targeted restrictions, under a new proclamation signed by President Donald Trump Sunday.
4hoteliers.com - 25 September 2017
As Chinese tourists tend to flock to destinations along the ‘Belt and Road' regions, maintaining tourism trade balance against the tourism markets along the ‘Belt and Road' is still a challenge. China faced a tourism trade deficit of USD 216.7 billion in 2016, as Chinese tourists spent USD 261.1 billion abroad while China’s inbound tourism receipt for the year was USD 44.4 billion, according to the Annual Cross-border Consumption Index Report released by Economic Information Daily and Visa on September 11.
skift.com - Destinations - 23 September 2017
People kicking off fall vacations in Mexico this weekend won’t be able to use the nation’s busiest border crossing to get there. The southbound lanes of the San Ysidro crossing connecting San Diego to Tijuana closed at 3 a.m. Saturday and will remain closed until noon Monday for work on a $741 million expansion project.
skift.com - Destinations - 23 September 2017
The next version of President Donald Trump’s travel ban could include new, more tailored restrictions on travelers from additional countries. The Department of Homeland Security has recommended the president impose the new, targeted restrictions on foreign nationals from countries it says refuse to share sufficient information with the U.S. or haven’t taken necessary security precautions. The restrictions could vary by country, officials said.
Hotel Management - 22 September 2017
In a blow to the tech-heavy sharing economy, London’s transportation regulation agency Transport for London deemed Uber “unfit” to run a taxi service on Friday and stripped it of its license to operate in the city. The rule will take effect on September 30 in what Reuters is calling “a major blow” to the ride-sharing service and its 3.5 million users in the UK’s capital. The company has 21 days to appeal in Britain’s courts—it immediately vowed to do so—and will be allowed to continue operating in the city during the appeal process.
harvardbusiness.org - 22 September 2017
After years of screaming headlines about data breaches, we all know the drill. A major company announces it has been hacked, a brief public outcry ensues, and then… not much happens. Down the road you might read about a government inquiry or a class-action suit being settled. People have become numb to these announcements. We assume our personal information has been compromised in some way, take reasonable precautions like canceling a credit card or instituting credit monitoring, and move on with our lives.
hotelnewsnow.com Featured Articles - 22 September 2017
The year 2016 marked a new step in hotel distribution with the active participation in travel of Google, TripAdvisor and others entering the market with instant booking and other transactional models. Here’s our straightforward assessment and actionable guidelines for owners with regards to the management of their room inventory. Asset managers have to be well-versed in the subject to be able to identify potential hidden costs. After all, as owners expect operators to generate direct bookings, management fees are computed on the basis of the “full average daily rate” and not on the “net ADR” (which is ADR minus transaction-related acquisition costs and general acquisition costs, plus ancillary spend).
Business Travel News (BTN) - 22 September 2017
London taxi and car-for-hire regulator Transport for London informed Uber for London that its private-hire operator license will not be renewed. The license expires a week from tomorrow, on Sept. 30. However, Uber can appeal by Oct. 13, based on the Private Hire Vehicles (London) Act 1998, and can continue to operate until the end of the appeals process. "TfL considers that Uber's approach and conduct demonstrate a lack of corporate responsibility," according to a statement that cited "potential public safety and security implications." Those include reporting serious criminal offenses, how drivers' medical certificates are obtained, driver screening and Uber's explanation of software that might have blocked regulators from performing their duties.
skift.com - Digital - 21 September 2017
London and Partners, in partnership with The Trampery, opened The Travel Tech Lab in 2014 to create a global hub for innovation in travel, tourism and hospitality. Three years later, we’re taking a deeper look at London’s first incubator space focusing exclusively on the travel and technology industry.
CBRE Hotels - 21 September 2017
In the current market environment of modest growth in revenue, hotel owners and operators are paying extra attention to their operating expenses. Per the June 2017 edition of Hotel Horizons(r), RevPAR growth in the U.S. is forecast to remain under 3.0 percent from 2018 through 2021. Therefore, it will be management's ability to control expenses that will enable profits to grow.One expense that management has less control over are franchise fees. Most of the fees charged by the franchising companies (brands) are assessed as a percent of a source of revenue. Therefore, owners and operators have mixed emotions when franchise-related costs rise. After all, if you are paying more franchise fees, then it is likely that your property's revenue is also on the rise.To assist hotel management and ownership in their assessment of the franchise-related costs they are paying, we have analyzed data from 1,587 U.S. hotels that reported franchise fee payments each year from 2010 through 2016. The data comes from our firm's annual Trends(r) in the Hotel Industry survey of operating statements from thousands of hotels across the nation. Some of these properties are owned and/or operated by a brand. Others license the brand, but are operated independently, or by a third-party management company.In our Trends(r) database we capture four different franchise-related fees on a discrete basis. They are:Royalty PaymentsMarketing AssessmentsReservation FeesGuest Loyalty Program FeesFor this analysis, the sum of these four components comprise "total franchise fees". These are the data that we analyze in this article.The Cost of FranchisingAs noted before, franchise-related fees are typically assessed as a percent of revenue; most frequently rooms revenue. Therefore, it is not surprising that total franchise fees measured as a percent of rooms revenue has remained fairly constant from 2010 through 2016. In 2010, franchise fees averaged 6.8 percent of rooms revenue, or $2,326 dollars per available room (PAR). This metric increased to 7.2 percent in 2016, or $3,381 PAR.Due to the ascending average daily room rates, franchise fee payments on a dollar per available room basis increase as you go up in chain-scale. In 2016, properties in the midscale segment averaged total franchise fees of $1,897 PAR, while luxury hotels paid $3,970 PAR. Conversely, franchise fees measured as a percent of revenue ranged from a high of 9.6 percent for upper-midscale hotels to a low of 5.2 percent at luxury properties.The ComponentsThe increase in franchise fees as a percent of revenue indicates that they have grown at a greater pace than rooms revenue. From 2010 to 2016, total franchise fees increased at a compound annual growth rate (CAGR) of 6.5 percent. Concurrently, rooms revenue for the hotels in the sample experienced a CAGR of just 5.5 percent. By analyzing the four individual components of franchise-related expenses, we can identify those elements that have led the rise in fees, and those that have lagged.In 2016, royalty payments constituted the greatest portion (29.5%) of franchise fees, followed by guest loyalty program fees (27.9%), marketing assessments (25.6%), and reservation fees (17.0%). This differs somewhat from the profile of payments made in 2010 when the largest share went towards guest loyalty program fees (27.3%), and royalty payments were only 26.8%.The increase in franchise fees has clearly been driven by the royalty payment component. From 2010 through 2016, franchise royalty payments have grown at a CAGR of 8.1 percent. This is 260 basis points greater than the growth in rooms revenue during the same period. Guest loyalty program payments (6.8%) also increased at a greater pace than rooms revenue the past seven year. Lagging in growth were marketing assessments (5.9%) and reservation fees (4.2%).Management Structure MattersSixty percent of the properties in the study sample were owned and/or operated by the brand affiliated with the hotel. The remaining forty percent was either managed by the owner (non-brand), or operated by a third-party management company. Between the two management structures, we see differences in both the composition of the franchise fees, and how each component has grown since 2010.In 2016, the components of franchise fee payments were more evenly distributed at the hotels operated by the brand. Since the brand is also earning management fees at these hotels, it can be assumed that they will alter components of the franchise fees as needed to win the management contract. At the brand-operated properties, the greatest share of franchise fees went towards the guest loyalty program (30.7%). However, the greatest growth in franchise fees at these properties since 2010 has occurred in the royalty payment (11.0% CAGR) component. Overall, total franchise fees at brand-operated hotels increased by a CAGR of 6.6 percent from 2010 to 2016, while rooms revenue grew by 5.5 percent CAGR.At the hotels that are self-operated or managed by a third-party company, royalty payments (45.4%) dominate the total dollars paid to the franchisor. Since the brand is not receiving any management fees at these properties, they are less likely to negotiate any reductions in franchise royalty payments. From 2010 to 2016, the component of franchise fees the increased the greatest was the guest loyalty payments (9.2% CAGR). This is significantly greater than the increase in rooms revenue (5.6%) for these properties over the same period. Since the amount paid for guest loyalty program fees is influenced by the benefit received from these programs, it can be assumed that these hotels have received an increasing volume of business from loyalty program guests over the years.Assessing ValueWith the prospects for revenue growth limited for the next few years, hotel owners are paying particular attention to the costs associated with acquiring revenue. They want a better understanding if the investments they are making in distribution channels, management, and their brand are providing a sufficient payback.When assessing the return they are getting for the franchise fees paid to their brands, owners also have the ability to dissect the value of the individual components. This enables them to make more specific comparisons to alternative brands, reservation systems, referral sources, management options, or even soft-brand alternatives offered by the franchisor.
CFO Magazine - 21 September 2017
The great debate over the shape of post-crisis financial regulation is in full swing, with the House of Representatives, federal financial regulators, and the Trump administration all having staked out their positions on reforming the financial services industry.
hotelnewsnow.com Featured Articles - 21 September 2017
Despite chronicled stress on Italian banks, hotel development is possible and finance is available to developers who do their homework and have a solid track record and contacts, sources said. Italy is lagging behind some of its Mediterranean neighbors in terms of hotel projects securing finance and getting off the ground, according to sources. Sources said Italy’s lending uncertainty is affecting the hotel industry by compelling developers, owners and operators to be even more diligent in doing their homework and presenting ironclad business and financing plans. The Italian banking system started experiencing some distress in 2016, and the most notable evidence was the nationalization of its third largest bank, Banca Monte dei Paschi di Siena, which also is widely acknowledged to be the world’s oldest surviving bank.
hotelbusiness.com·Requires Registration - 21 September 2017
For many, Airbnb is the bugaboo of the hospitality industry. On behalf of hoteliers everywhere, the American Hotel & Lodging Association (AHLA) has sought to shine a light on the major concerns growing out of the popularity of home-sharing websites—specifically, “illegal hotels,” the lack of oversight and adherence to regulations and taxes, as well as the potential degradation of residential communities as a result. The association is not alone in this fight.
Lodging Magazine - 21 September 2017
Two law firms with experience in the lodging industry are teaming up to support hotel owners in the wake of massive destruction caused by flooding and winds from hurricanes Harvey and Irma. Texas-based Patel Gaines and Florida-based Farrell & Patel are working together to ensure that hoteliers receive just and fair treatment of their property damage claims by the insurance industry. “Each of our firms has done huge amounts of work in the hospitality industry,” said Rahul Patel, managing partner of Patel Gaines. “I literally grew up in my parents’ hotels. Our two law practices are very involved with the Asian American Hotel Owners Association (AAHOA) and the Texas Hotel & Lodging Association, among others. So, we’re keenly aware of the legal and insurance issues so many in the industry are now facing. They know us and our track record well.”
Club & Resort Business - Management - 21 September 2017
Bogey Hills CC is on a fast track to recovery from a devastating clubhouse fire. Along the way, its owners have learned valuable lessons about sound insurance practices that every club should follow. Shortly before midnight on February 16 of this year, fire companies from St. Charles, Mo., and surrounding communities responded to reports that the three-story, wooden clubhouse of Bogey Hills Country Club was fully engulfed in flames.
Hotel Management - 20 September 2017
The French economy is now on the rise following several years of stagnation as the country recovered slowly from the impact of the global financial crisis. During the really tough years, growth in real GDP was limited in 2014/15 and 16 to 0.9 percent, 1.1 percent and 1.2 percent, respectively—a pace not sustained enough to reduce the endemic French unemployment rate, sitting at around 10 percent. However, French President Emmanuel Macron, only 39 years old, is paving the way for a new boost for the country, including loosening labor rules and cutting corporate taxes.
harvardbusiness.org - 20 September 2017
Even for the experts, the recent data breach at Equifax was staggering. The data that undergirds the credit records of 143 million consumers was compromised. Social Security numbers, dates of birth, and drivers’ license records are used to authenticate identity. It is not difficult to change a credit card number, but changing Social Security numbers and birth dates is a whole different matter. Data breaches are on the rise in the United States. It’s time for Congress to act. Why does this require action by Congress? There are at least five major reasons that the private sector cannot handle this issue on its own:
Business Travel News (BTN) - 20 September 2017
Major hotel chains’ recent expansions of their advance-cancellation penalties reflect a lack of understanding of the potential costs for corporate hotel programs. These changes bring yet another new element to the hotel sourcing process: Now buyers need to better track their programs’ metrics on hotel cancellations, when they take place and the costs/pain threshold of their specific program objectives. Back-of-the-envelope assumptions rarely satisfy CFO queries; travel managers need to have answers ready for their bosses as the impact of these changes on 2018 budgets comes into focus.
hotelnewsnow.com Featured Articles - 20 September 2017
The age-old question for hotels is which performance metric ultimately has a greater impact on profitability: occupancy or rate? For total transparency, I’ll answer this question upfront—there is no right answer. There are too many variables in the industry to make a claim this bold, such as additional revenue streams and general cost control, which are two crucial elements, to say the least.
Hospitality ON - 20 September 2017
Which actors are involved? Hotel groups, hotel operators, employees and the client, or more precisely clients as they are many and polymorphic. Productivity loss affects hotel groups that have not made the necessary investments and have lost control over commercialization. Hotel operators, meanwhile, have not invested in CAPEX and in new procedures in order to get the most out of their hotels. Employees have not been sufficiently trained and given the tools to adapt servuction or even to innovate in the services customers expect. Where does the quality of service come from? At the beginning of the production line, before creation, conception, commercialization of the product, but also and especially at points of direct contact. The machine that is the hospitality industry has slowed in productivity, lost in terms of quality and thus seen a drop in occupancy. To expect the customer to adapt to the product would be both utopian and suicidal when it is the product that must adapt to needs and demands.How to reboot the machine yet remain productive ? By promoting its assets: qualified workers who are trained to be autonomous, encouraged to take initiatives, able to adapt. Product ambassadors who are flourishing in their jobs and must be true local entrepreneurs rather than just passive links to the headquarters of brand operators. This is one of the first levers for improving productivity.Optimal use of new technologies makes it possible to simplify, automate and lower operating costs, thereby allowing employees to concentrate on tasks with higher added value. Only new concepts have succeeded in lowering operating costs, but the problem remains for the other, majority share, of the hotel supply.Return autonomy to the divisions will make it possible to finally improve the jobs-activity flexibility to enhance productivity, better customer satisfaction and thus better competitiveness and growth in demand. Marginal costs will decrease with the repositioning of the supply, thereby helping demand increase. Labor flexibility is necessary in order to adapt to this new demand, but it has not yet fully implemented in the organization of personnel.By returning capital and labor assets to the production unit it will be possible to improve competitiveness. Boosting activity must also happen from the bottom up, from the point of direct contact with the client rather than from headquarters, which would be wise to give hotel managers more autonomy.It is clear that competition between destinations and products has been stepped up in recent years. The arrival of new concepts, the renewal of the camping offer with an improved range and the arrival of new products such as mobile homes, the diversification and modernization of the tourism residence supply and the explosion of the shared accommodations offer are examples that show that when investments are made on the supply, competitiveness becomes obvious. We can bet that if we rethink our functioning and our priorities on a local level, it will be possible to renew the value of the hotel industry and get the machine operating full throttle again.
Newest Must-Read hebs Whitepaper: The Smart Hotelier's Guide to 2018 Digital Marketing & Technology Budget Planning
HeBS Digital - 20 September 2017
Budgeting season: the time to analyze what initiatives are driving performance, review trends in the industry that should be taken into account when constructing your budget, and start thinking about any major upgrades your property needs to take in its digital technology and marketing strategy.The Smart Hotelier's Guide to 2018 Digital Marketing & Technology Budget Planning whitepaper is created every year to guide hoteliers on the budgeting process by outlining the tools needed to engage, acquire, and covert travel consumers, as well as enhance the on-property guest experience, and inspire guests to book a future stay.Here is a sneak peek of what's included in the whitepaper:Key Industry Factors & Trends to Consider in 2018: an overview of factors that should be considered when finalizing your budget such as the state of the industry, the need to resolve the fragmentation of data and digital marketing strategies, the complexity of the travel planning journey, changes in the Google advertising ecosystem, Airbnb, and more.Action Plan for Creating Your 2018 Budget: HEBS Digital recommends that 3-6% of total room revenue go to the Sales & Marketing line item of the hotel budget. The actual percentage depends on the location of the property, complexity of the business, and ADR. This section also includes recommendations on how to organize the digital technology and marketing part of the overall budget.Breaking Down the Budget: this section takes a deep dive into each digital technology and marketing budget initiative, with updates on the latest developments in each as well as recommendations on what to focus on for 2018.Your 2018 Budget Snapshot: see a breakdown of each line item in the budget and recommendations on what percentage of the budget to allocate for each.The 2018 digital marketing & technology budget should not be looked at as just another expense for the property. This is a direct distribution cost vs. hotel expense, as well as an OTA commission-reducing investment. In this sense, the digital marketing budget provides a dual benefit: it increases direct bookings at the lowest possible distribution cost and it reduces expensive bookings made through the OTAs.With industry forecasts flattening and even decreasing occupancy, and supply outweighing demand in many major markets, the only cost driver hoteliers have any control over is distribution costs. Therefore, increasing direct bookings and lowering acquisition costs is vital to the health of any hotel. A very achievable goal for 2018 should be increasing direct bookings by 15%-25%.Success for hoteliers in 2018 will be based on how much acquisition costs can be lowered and how well they know their guests, along with what actions are taken with that knowledge. Download The Smart Hotelier's Guide to 2018 Digital Marketing B& Technology Budget Planning for your roadmap on how to achieve your property's revenue goals starting now and into 2018.
Budget Season Has Arrived: Be Smart- Spend Wisely- And Choose Your Business Center Provider Carefully!
Hotel Online - 19 September 2017
The hospitality industry’s offering for Business Centers is changing rapidly. “Let's face facts,” Says Steve Blidner CEO of TTI. “Business centers are still a viable commodity. However, the needs of guests have and continue to change. Make sure your provider has the capability to keep up with these changes. Never get locked into a single platform solution.”
hotelnewsnow.com Featured Articles - 19 September 2017
AHLA’s financial management committee recommends operators and owners understand the details of their agreements with online travel agencies. Starting on 1 January 2018, there will be several changes to the accounting and financial reporting standards that will impact the hotel industry. Owners and operators need to prepare now to ensure these accounting changes don’t negatively impact their bottom lines.
The Hotel Financial Coach - 19 September 2017
We are all familiar with the American Sunday ritual of turning left several hundred times, cold beer, BBQ and t-shirts. I have long been a big fan and there is a great story and parallel to financial leadership I want to tell you about. It relates to one of my favorite drivers, Mark Martin.It has just been announced that he will be inducted into the short list NASCAR Hall of Fame recipients in 2017. Funny thing: He has never won the super bowl of the sport, The Daytona 500, and he has never won a season championship either. So, why the Hall of Fame?"To be gritty is to keep putting one foot in front of the other. To be gritty is to hold fast to an interesting and purposeful goal. To be gritty is to invest, day after week after year, in challenging practice. To be gritty is to fall down seven times, and rise eight." ~ Angela Duckworth from her book Grit.Mark's NASCAR career started in 1981 when he participated in only five races, won two poles (qualified fastest and started first) and had one top 5 finish. Pretty good for a rookie in an incredibly competitive sport. The next season he started 30 times had two top 5 finishes. His third season he started 16 times and had one top 5 finish, fourth season: five starts and no top 5's or poles, fifth season: only one start and no results. Things were not looking so good. Five years of going backwards on a young career would be enough to pull the plug, but not for Mark. If there is or will ever be a driver with GRIT it is Mark.For 33 seasons (years) he battled it out. 882 races. 255,000 laps. 40 wins. 271 top 5 finishes. 453 top 10 finishes. 56 poles. Yet no championship and no Daytona 500 win. He finished in second place for the season championship five times. How does someone keep going? Well, he looked at it this way.How can I get a little better with one small accomplishment at a time?That's Mark's motto. He would think all night long before a race: what about the shocks, what about the carbs, the tires, every part of that car. That is a great way to look at anything you are trying to accomplish. What is the next thing--the next little thing--I need to do? Do not be waiting for the BIG thing--look for all the little things--they matter and they produce the big thing. The same is true with your financial leadership, do not look for the magic solution; look to make lots and lots of continuous adjustments."I'm not good at looking in the rearview mirror, I like the windshield." ~ Mark Martin"How would it change my life?" he was asked in a recent interview if he had won the 500 or a championship.He replied, "I'm not bitter, I'm proud of my accomplishments and my career. I worked hard and that's what mattered, I didn't ever stop being a winner."This is it. What has happened in our past is history, it is not an indication of what is ahead. We do ourselves no favor by regurgitating our first 5 seasons.What are you looking at? The rear-view mirror or your windshield. So what if the events of your past are not victories. Don't go there.Keep moving forward and you will find your hall of fame. If you would like a copy of any of the following send me an email at firstname.lastname@example.orgHotel Financial Policy Manual - Inventory of "Sections"Hotel Financial Coach "Services Sheet"F&B Productivity SpreadsheetRooms Productivity Spreadsheet Financial Leadership Recipe F TAR WFlow Thru Cheat SheetVisit my website today for a copy of my guidebookThe Seven Secrets to Create a Financially Engaged Leadership Team in Your Hotelwww.hotelfinancialcoach.com