Take resource management, for example. The price of electricity is going up, and there is more pressure on hotels to lighten their ecological footprint. Experienced managers know there are countless ways to save resources - including voltage optimisation, water conservation measures, LED lighting, high-efficiency appliances, solar panels and so on. If none of these solutions are researched or exploited, the hotel's profit margin will be much narrower than it could otherwise be.Housekeeping is another oversight that costs dearly. Take a look at popular review platforms like TripAdvisor and Google. Notice how many negative reviews are centered on housekeeping issues. Even one guest who doesn't feel the room has been properly cleaned can put a large dent in a hotel's online reputation. We could use clearer statistics on the reasons for negative reviews, but lack of cleanliness is clearly among the most common. Avoiding this pitfall involves clear direction, careful oversight, regular inspections, and more effective training for staff.What about truth in advertising? This is another mistake that gets hotel managers in deep trouble. It sounds simple enough to be aware of your hotel's promotional photos, where they appear online, and whether they match your current fittings. But these things can get lost in a busy year at a busy hotel. OTA listings - whether due to confusing upload procedures or shortcuts taken by hotel managers - often feature inaccurate photography for different room types. Negative guest experiences are generated, and reputation is lost.Making your hotel a great place to work - this is another area where so many blunders are made. Personalities may clash; priorities may be forgotten. Managers may lose sight of the simple fact that when staff are happy and motivated, every aspect of the guest experience is elevated. The experience of being a manager is elevated too.But this is notoriously easier said than done. It takes skillful and empathetic leadership to build a rapport with employees; to reward them for great work and include them in critical problem solving. When done correctly, this gives the hotel a rock solid foundation. When good leadership is lacking, it's not just the team but also the guest who pays a price.We could go on and on about the various things hoteliers can get wrong - and there are many - but what is the biggest?In 2018, one of the biggest mistakes is not being aware of how many options travelers now have - if we are aware, then not acting on that is equally as bad. The hospitality landscape has grown more competitive and transparent. We can no longer say, "this is my product and you will like it". There are new properties popping up all over Australia and the world, from privately managed apartments to boutique hotels converted from warehouses. Technology continues to have a massive impact on hotel design. Management styles are becoming more inclusive. Service models are changing too, according to what managers and executives think people want. Travellers have choices and they are vocal in making them.Hotel managers shouldn't feel compelled to make drastic or hasty changes though just because one guest says something, but they should be aware of how things are changing. It's true that certain aspects of hotel management are fundamental. It will always be vital to be develop a strong team, keep standards high in the housekeeping department, get employees what they need, conserve resources, and practice truth in advertising. Making mistakes in these areas will always hurt performance.Beyond that, what matters most in our industry is understanding what guests value, taking action to acknowledge this, and then capture the most business over the long haul. These issues emphasise that professional hospitality, whilst based on a set of established values is just like everything else these days - a conversation. For a hotel manager to thrive professionally and avoid costly mistakes, they have to join that conversation with a vested interest in understanding what their guests want and creating great guest experiences. So, how do you converse?

In order to make the most out of a hotel, the management needs to take into consideration the resources it has at its disposal and create a team that's based on the needs of your guests and customers.Find the best peopleEvery company is only as good as its employees, but this is especially true for the hotel industry. Almost everything that's done in this line of work is oriented towards the guests and clients and, therefore, each employee is there to represent the company in the best possible light.This, in turn, means that an HR team behind a hotel needs to work on finding the best employees at all times. It's a mistake to wait for an opening before hiring. Lists of talented and potential employees are probably the most important asset a hotel can have and they should be updated regularly.Distribution channelsHospitality-related businesses can't work on their own because they offer too wide a service. They are dependent on numerous other companies and, therefore, on the channels between them. It's imperative to always have the supplies that you need and the access to the professionals that are needed to run the business smoothly and effortlessly.It should also be noted that every long-term relationship that a hotel forms also means that the business is dependent on another external company. This can be troubling because it's essentially giving a lot of control to another business.AccountingAccounting is probably one of the most important concerns for any company. It makes sure that a business is compliant with the laws and rules, but still helps it use most of its resources toward the goals of expansion and growth. The main issue a business manager needs to solve right away is whether to use a general purpose accounting company or one that's specialized in the hospitality industry.It's probably best to rely on hospitality accounting specifically because those professionals know the details of the industry and can provide a more comprehensive service, as well as a more lucrative one.Embrace the modern technologyAutomation, social networks, and mobile devices are the three most talked about topics in the hospitality industry. The changes in technology are disturbing the industry and acting as an equalizer between smaller hotels and bigger ones. A successful hospitality business should embrace these changes and use them as much as possible.The first area in which the modern technology will have the most impact is the customer service. That's one of the most important features of a hospitality business and it gets noticed the most, by the guests themselves. Using mobile apps and metadata info to make the stay more convenient to each guest can get you a long way.Focus on the feedbackCustomers are usually the best judges of how a business is doing. It's imperative to stay on top of the complaints and the feedback that come from the customers themselves. That way, a business shows that it cares about the customers and that it's willing to adapt to them.It isn't enough to rely on sites such as Yelp that are designed for this purpose. Every hotel should have their channels of feedback in order to get a more detailed response and be able to act on it.Expanding the servicesA hotel business needs to expand the services it offers on a regular basis in order to stay competitive and engaging for its guests. This can be a problem for smaller businesses that can't afford to add new features and, therefore, new employees to its offer, but such expansions should be a part of the plan from day one.A modern hospitality company should try to provide services suited to all kinds of tourists, from those that are looking forward to learning about the history and the culture of the place they are visiting to those looking for an adventure and an active holiday.Hospitality management is an interesting and expanding field. It's going to change and adapt in order to accommodate the changes in this market brought about by more competitors and more demanding guests.

Built-In from the Ground UpHotel design aspects have lined up with wellness construction counterparts and evolved into a thriving wellness-driven real estate market. This marks a profound shift in the design and permutation of wellness and hospitality. Wellness Lifestyle Real Estate represents approximately $119B USD of the $3.7T USD global wellness economy and is projected to increase 6% annually in the next several years, growing to $180 billion by 2022. "Source: GWI Build Well to Live Well 2018 ReportManagement and LeadershipThe urge to activate new wellness overlays continues to gain momentum. Yet, operational development is often encumbered by lack of investment, time, or concentrated action. Generally, a Spa or Fitness Director would assume the responsibility of developing a property's wellness channels. Meanwhile, their primary focus would be dedicated to these respective areas, without typically being able to effectively cross into other departments i.e. food and beverage programs, in-room services or expanding into potential meeting and group opportunities. If the intention is to create substantial layers of well-being throughout the hotel or resort, it's wise to form a complete department assigned to appropriately develop and refine these features throughout the property. Companies who are seeking to advance their wellness programming and diversify their approach, should consider the benefits of enlisting a proficient Wellness Director or Well-Being Manager. This person would facilitate program excellence and drive successful department crossovers. Furthermore, having a dedicated manager to oversee program efficiency, would add focus to the wellness lineups. This individual would manage and track the percentage of growth to safeguard the ratio between program performance and return on investment. Having someone in this role to lean on would shape the property's unique attitude towards wellness and measure the impact and percentage of wellness-driven revenue on ADR and RevPAR performance. This person would also unite the wellness theme throughout the hotel, be responsible for quality auxiliary services and facilitate discoveries for internal and external marketability that is suitable for the property.Cross-Department RevenueIn the past, spa and fitness assets have mainly been viewed as amenities to augment guest comfort and convenience. While the booming years of luxury spa experiences thrived in the 1990's until 2008; the spa market has rebounded and surpassed the success of prior years with an upsurge of both new spa development, and wellness-driven market growth. Spa revenue in the U.S. has been experiencing steady growth since 2010 and now represents at $16.3 billion market.For many properties it has become essential to not only offer a well performing spa and fitness component but also include features that support healthier choices and nurture well-being. These assets impact the eminence of stay, healthy food, level of quality experiences and so on. For example, food and beverage outlets must increasingly cater to specialized lifestyles, food and diet restrictions, i.e. vegan, gluten-free, and so on. These distinct menu selections are common requests shared across the whole of the hotel, no longer considerations for singular outlets. With increasing department overlaps, the rise of business and solo travelers has amplified the demand for various, beneficial in-room and poolside amenities. These have taken the form of in-room fitness programs, private tele-guided yoga and meditation sessions, relaxing in-room tub soaks, and on-demand massage services. New products are showing up as in-room indulgences, in addition to snacks and drinks in the mini-bar. And spa and fitness features are actively mixing with other key areas throughout the hotel. These segments stimulate guest stay, add value and advance new opportunities to increase the capture of add-on revenue.Ways to Boost Add-on EngagementIntroduce add-on offers at check-in or through in-room marketingCreate add-ons that enhance existing treatments or servicesDesign new spa and dining combinations with motivating themes for couples, etc.Format memberships with an uncommon mix of add-on benefitsCreate employee recommendation structure with percentage incentivesStrategic OverlaysNothing beats a well performing business strategy when it comes to incorporating various enhancements and add-ons. However, it's vital to understand how manageable and appropriate the range of services are. Just because something might be trending in the marketplace, does not mean it will produce lucrative results, or have rewarding potential. Customizing the operational business structure with tactical planning is fundamentally important. It's as vital as setting up goals for successful integration and program development. The success of the Miraval Group represents one example of how a well-tooled strategy can significantly impact the RevPAR and the ADR of a business by incorporating an advanced perspective and mobilizing well-being at the core of the company mission. "As a global leader in wellness resorts and spas, we observed that Miraval understood that wellness is a mindset, not a commodity to be thrust upon consumers, which is a distinction that underscores our wellness strategy moving forward. Miraval is truly an integrative and authentic approach to wellness and wellbeing - an approach that we, over time, think will go over the broad mention of Hyatt in general." Said Marc Ellin, the global head of Miraval Group. Last year, Miraval Arizona's RevPAR grew 20.4 per cent, he said, while its ADR increased by 15 per cent and occupancy grew by another 6 per cent.Add-ons and EnhancementsOne of the most effective ways to instigate new service engagement is to create offers that add weight to existing, premium selling packages. Introducing services this way, reduces perceived customer risk and complements overall package value. Add-ons are a popular way to expand upon spa treatments, and fitness amenities. They are generally easy to sell and have unique benefits when paired with the right services. Enhancing a well performing offer can spark curiosity and help garner attention for less noticeable services. There are multiple ways to craft a solid selection of services. Committed retail partners can be valuable resources to provide support through special spa product allowances or backboard discounts. They are also good allies to develop and collaborate with to form a new layer of services. "Packages targeted at couples were mentioned by over nine in 10 resort/hotel spas (94%) compared to 71% of day spas. Wedding party packages were more frequently mentioned by resort/hotel spas (70%) than day spas (51%). "Final ThoughtsChoosing to embrace wellness with an all-inclusive methodology can transcend wellness themes to new heights. On behalf of new property development, it's prudent to review the capacity and influence new building and construction possibilities hold. The lines between health and hospitality will undoubtedly continue to crossover into the future. These intersections will intensify the need for diligence, program management and new outlooks on enhancement provisions. This will also reveal new value propositions and drive the creation of new revenue channels. Disjointed programming is a common challenge. The central keys to building successful wellness integrations rest in understanding how to incorporate add-ons that add meaning, capture with a widespread attitude, and spearhead meaningful momentum.HotelExecutive.com retains the copyright to the articles published in the Hotel Business Review. Articles cannot be republished without prior written consent by HotelExecutive.com.

Frank Abagnale is arguably the world's most famous modern-day impostor. Leonardo DiCaprio played his character in the 2002 movie directed by none other than Steven Spielberg, with the same title as this piece. The movie was based on the 1980 book that Frank wrote. I am writing about Frank Abagnale because I had the pleasure of meeting him personally, and experiencing his trickery, just a little. Also, there is a direct link between what his story is all about and your own financial leadership journey.If you have not seen the movie, watch it. Tom Hanks plays the lawman chasing after Frank and it is a wild ride. The book is also a must if you are even mildly interested in a good con man's story.My story of meeting Frank and the parallel to Financial Leadership starts early in the winter of 2003. I was the hotel manager of a popular downtown hotel in Vancouver, Canada. The movie "Catch Me If You Can" had just been released and a local business association had booked Mr. Frank Abagnale to speak at a luncheon in my hotel. I had the pleasure of attending the luncheon, listening to him speak passionately about children and the role of a parent or guardian. We even held a private reception the evening before he spoke, and I got to meet the famous impostor. I was a big fan, having read the book and seen the movie just days before. Frank has a cameo in the movie and I had seen his picture, so I was a little familiar with what he looked like.For those of you who are wondering about my character and you have not heard of him, he successfully pulled off taking on eight different identities from the age of 15-21. He traveled the world as a commercial pilot (jump seat only), physician and lawyer, just to name three. He also was a master at check forgery. He was caught by Hanks, turned legit and has worked with the likes of the FBI using his talents for the good, and he has even testified before the US Senate about his former life as a master counterfeit check man.The funny thing was--he was even an impostor at our reception.Here is how we metI was speaking with a couple of people at the reception and all of a sudden there was another person engaging in the conversation. We were talking about our guest of honor and what a great story he had and his movie. All positive things, thank goodness because he was now part of our discussion and I, like the other couple, thought Frank was someone else. I am not at all sure who I thought he was, but he simply assumed the role of a person who made me believe he knew me. The other couple experienced the same comforting feeling. I do not know what he said to gain our confidence and allow us to drop our guards, but it was pretty cool. We continued our dissertation of our guest of honor until he spoke and introduced himself. We were all quite embarrassed and completely surprised at the same time. He smiled, and you could tell he was a master in action, simply practicing what he does, pretending to be someone he is not.After he left our little group at the reception, the other couple and I marveled at his bravery and the pure entertainment we just experienced. How he made us all think he was someone we knew. Actually, he convinced me he knew the couple and, in turn, the couple thought he knew me. Genius.This is the magic of being an impostor. Knowing enough to fool someone who should know something about how you need to look, sound, smell and feel like. That is the con. It is a confidence game and to be successful you need to show up with that level of confidence in who you are and what you are doing so other people do not get suspicious.The Tie to Financial Leadership - My First Budget Review MeetingI vividly remember the first time I had the opportunity to see the corporate budget review team in action. I was invited to the meeting where we reviewed the hotel annual budget. I really had no idea what to expect. I was nervous, and I had convinced myself that I would be found out and singled out for not really know what was going on. You know, the impostor syndrome. I know this is what holds many people back from jumping into the numbers game in their hotels. Fear.What I experienced that day was nothing short of theater. A lot of chest pounding and pontificating in that room. Who had the best stories, the most convincing comparisons, the examples that paled the rest? Each person in the meeting that day was in some way an impostor, playing a part and trying to convince the others that they knew what they were talking about. All the while we followed the president's lead. If he liked a particular story or theory, we all followed that dog. It was an amazing dance to watch. I barely said a word beyond hello, goodbye and kissed my calculator. But what I did see that day was that these captains of my industry, they were all trying to convince one another and the boss they knew the story. It is a confidence game. It is how human beings play together in the business world. If you have been there you know what I am talking about. If you have not experienced this yet, be patient, be ready and above all else take your shot.Here is the parallel: being an impostor and financial leadership. You must be willing to walk into the meeting room like it is your room. That does not mean you are cocky or arrogant. Humble and respectful is the demeanor you want to have. Your number one job is to listen, observe and learn. You also need the stomach for what is coming your way, and the willingness to respond. This is where most people turn away. They do not feel they have the knowledge or the experience, so they do not feel they can play, let alone play at this level. This is a big mistake. What you do not realize is everyone in that room is in the same boat as you. At some level or another, they are thinking the same things you are, namely, who am I to be here with my limited knowledge and sooner or later will someone find me out?I have seen hundreds of examples of people playing this game and I want to share a few things about this experience with you. In fact, once you see this you will realize everyone you encounter is playing the game at one level or another.One, the biggest impostor is almost always the bossThat is right--he or she ultimately knows the least about the detailed subject matter. That does not mean they lack the experience or the knowledge to do their job, they just do not have the knowledge and firsthand experience you do. Do not think for a moment they know your reality. At the time my experience began, our president had just joined our hotel group from a sister company that made baking supplies. Now he is in a boardroom with 15 hotel people talking about our business. The best con man that day was him.Two, people have your backThe people in the room want to hear from you and they have your back. They have a natural desire to want you to feel comfortable and to hear your thoughts. They instinctively know you are the rookie and they want to put you at ease and they do not want to see you suffering. They will not hang you out to dry.Three, play the gameIf someone you work with thinks enough of what you are up to and they have invited you to the big show, then you are ready. The only thing that is missing is you and the courage to play the game. To listen and learn.When you are called upon, speak from your heart and above all else do not try to BS your way. If you do not know the answer, ask a clarifying question. Someone will bail you out. Many times, not having the answer is the best strategy.Point to a possible answer or conclusion and watch others fall in.Fourth and final, they've been in your shoesEveryone in that room has passed through the same door as you. They have all been in your shoes and in some way, they are all impostors just like you, so enjoy the show. You are about to witness human interaction at a whole new level. Be conscious enough not to miss this. Over the years, every time I have attended a similar meeting I received an education that cannot be taught in school. Do not lose sight of this.What "Catch Me If You Can" taught me was a willingness to get it wrong was more important than being right. The readiness to show up and see what happens is more important than staying home until you are ready because you never will be completely ready. Taking the numbers in your hotel by the horns is the way to go. Trust yourself enough to walk into the cockpit and take a seat and welcome those probing questions."All the world's indeed a stage / And we are merely players / Performers and portrayers / Each another's audience / Outside the gilded cage" - Rush "Limelight"

Hotel hygiene and overall maintenanceProbably the most common issue that most hotels are facing are, in a way, related to the environmental health. When cleaning a hotel, there is just so much to cover, that some hotels are forced to enforce not-so-safe policies or employ people who are not well-trained when it comes to following environmental regulations. This could turn into a proper nightmare upon the arrival of the health sanitary inspector. Nonetheless, no matter how clean your hotel is, the area you want to focus most of your attention is definitely your kitchen. A slip-up here can run you out of business in no time.Moreover, if the hotel has a pool area that is not properly maintained, they might become responsible for the safety of their visitors. Contrary to popular belief, a notice that your clients are swimming at their own risk is not enough to protect you from a lawsuit. This is also why you badly need a reliable lifeguard on your staff.In-house theftOne of the first major issues that everyone points at when it comes to the issue of hotel security, is the one of in-house theft. The problem with hotel staff is that not a lot of venues can brag about the same full-time team for a prolonged period of time. Most commonly, these are seasonal workers or even people on immigration visas. This brings us to the issue of the reliability of your hotel's staff, which is not a matter to be looked down upon. In order to prevent this, do a background check when hiring and, when bringing people from abroad, make sure to have a reliable law firm experienced in both criminal and immigration law.Keep in mind, however, that there is a limit to the hotel's liability in this situation. For instance, if a valuable item is lost due to the hotel's negligence, or failure to take reasonable care of your assets, they might be responsible for the full value of the items stolen. On the other hand, if this was not the case, a client might not be able to get a full dollar amount of the item stolen in return.Physical crimesApart from the in-house theft, you will also face the issue of the outsider crime. What this means is that a third party walks into your hotel and endanger your guests. This happens due to the fact that tourists are usually deemed as a perfect pray for criminals, due to the fact that they don't know local laws and customs, don't know which neighborhoods to avoid and barely even speak the language.Needless to say, in some regions of the world (even touristic epicenters) terrorist activities are also considered as a massive threat. In order to protect your hotel from these issues, you need to hire a reliable security team, as well as invest in a powerful surveillance system. This alone can, at times, act as a deterrent.On the other hand, a hotel is not responsible for any of these, unless it is located in a high-crime area and failed to invest in safeguards. Another loophole happens if they should have anticipated the crime and did nothing to prevent it. The latter scenario is incredibly rare and highly unlikely to prove in the court of law.Identity theftThe problem with checking into a hotel lies in the fact that you need to give a lot of sensitive information in order to submit a reservation. This includes your credit card number and, upon the arrival, even your ID. The problem is that most hotels keep this information in digital form, which makes them into a massive target for hackers all over the globe. Unfortunately, most smaller hotels don't have the infrastructure to fend-off this threat. Nonetheless, failure to protect their client's confidentiality can still be interpreted as their fault. In order to prevent this from ever becoming an issue, you might at least look for a decent encryption software.In conclusionAt the end of the day, there are many other things that a hotel might get sued over. For instance, a damage to a guest's vehicle that happened due to the bad handling or lack of adequate protection can also be a reason for a lawsuit. So can a person who hurt themselves while at a hotel, although this mostly depends on specific circumstances. All in all, every hotel needs at least some form of legal protection or an expert on their retainer.

With major wage increases in many jurisdictions, it is more important than ever to have a system for planning and measuring labor productivity in your hotel. This article explains how you can do this and it is not just for the big boys, you can utilize this system in any size operation.I am working with a client who is just in the throes of getting this going in one of his hotels. It is a bit of work but well worth the effort as the results are going to pay off big time. I want to share what is working for him because I know it will work for you as well.The first thing to create is a baseline for current productivity in your hotel. If you have a food and beverage operation in addition to your rooms, you should create two baselines: one for your rooms operation and the other for F&B. The productivity measures to establish are hours per room occupied in the rooms department, and hours per cover served in the food and beverage department.For your system to produce the numbers you need, you must split the payroll hours into three main groups (or buckets): rooms, F&B and other. Once you have the three main groups, split the first two groups again, so you will end up with five groups. The American Hotel Associations 11th revised edition of the Uniform System of Accounts for the Lodging Industry (USALI) revenue and expense dictionary lays out all the positions that fall into all the various departments of any hotel. For this exercise you will use only three. You need to use three so you can get the two to measure separated from the third. Here are the three:Positions in the "Rooms Department" include all persons with guest-facing rolls: reservations, guest arrival, reception (day and night), concierge, all housekeeping positions, public spaces cleaners and, if you have a laundry, include it as well. Add all positions, both salaried and hourly, union or non-union. For this exercise now split the rooms section into two separate buckets: housekeeping and front desk.Positions in the "F&B Department" include all persons who contribute directly to the service and operation of your restaurants: beverage operations, banquets, kitchens, meeting spaces, cleaners and stewards. Include servers, bussers, hosts, runners, cooks and dishwashers. Include all positions, both salaried and hourly, union or non-union. Now split the F&B bucket into its two parts: kitchen and service."Other" will include all general administration, sales, maintenance, retail, spa, golf, grounds or any other position that does not directly support these departments.Do not fuss too much about positions that seem to not belong in either bucket. Make a decision as to where you will record it and just be consistent. The key here is to create the analysis and the productivity system, not to be perfect.Once you have the positions organized into the five different buckets, group all record-keeping efforts in the same manner. All schedules, time sheets, payroll classifications, department numbers, etc. They need to be set up, so you can subtotal all the payroll activity within the five separate groups--both hours and dollars.Now that you have the payroll organized by group you can start your analysis. The first section is the rooms, housekeeping and front desk. Pull your time sheets or run reports from your time clock or payroll system. What you are looking for are the total hours worked in these two rooms categories by all colleagues for the past full calendar year. Yes, that's right: one full year. You are only interested in productive hours, not vacations, holidays or sick pay. When you have the total hours worked in each category divide it by the rooms occupied. Here is where you see the first light of day.In a 75-room hotel that runs an annual occupancy of 75 percent you are servicing over 20,500 rooms.xxxDetermine the total productive hours for each category, housekeeping and front office and divide the hours by the rooms occupied to establish the base line productivity for a full year. Overtime hours are just another hour, do not add a multiple for over time, it is 1-1.xxxNow you have your baseline of .89153 for housekeeping and .337 for the front desk. What you want to do now is use this baseline to target your productivity, information that will be used for improvements. From this point forward, use the same buckets for weekly schedules and on these, add the forecasted rooms occupied daily. Also total the hours worked and divide that by the rooms occupied, producing a daily productivity and a total productivity for the week. Tracking and managing productivity is like a baseball game, with innings. You are going to win some innings and lose some but what you really care about is the final score. Productivity is the same concept. You will have good productive days and poor days, mostly dependent on volume.Always remember the most important things about managing labor:Your managers have little control over wage rates. Someone else sets most of these.Your managers have little control over business levels. Sure, you do right things through your advertising and promotion efforts. But the business that walks through the door, good or bad, needs to be serviced.What your managers do control is the schedule. This is where you want them to put their focus.xxxLooking at this schedule you can see the productivity scheduled for the week is below the annual standard of .892. The housekeeper must find some hours in their schedule. Looking at the least productive days of the week, he reduces the schedule by a total of 30 hours over three days.The final and most important step is to update the schedule spreadsheet each day with the actual results for both rooms occupied, and the real hours worked.xxxIn the scenario above, the hotel managed to almost meet the annual productivity target. By having a productivity target and something to measure by, they managed to save 26 hours from the original schedule. Do this every week and I'll let you do the math on that. Big savings and this is only the beginning.IncentivesNow that you have your baseline and your housekeeper is tracking and making improvements, it is time to introduce an incentive. Knowing that last year the baseline was .892, you will want to improve this in 2018. That means a lower number. Say target a 5 percent improvement with a threshold improvement of 3.5 percent and an exceptional target of 8 percent. If housekeeping productivity increases by 5 percent that means a thousand hours less payroll at 75 percent occupancy. Depending on your wage rate and benefits, this could easily be $25,000 in savings. Structure the incentive so it equates to a targeted $3,000 bonus, hit the threshold and it is $1,500, hit the exceptional target and it is $4,500.By using a productivity improvement target, you are looking at potential savings if the goal is met and it can bet met regardless of occupancy. Let's say the year is a tough one and occupancy dips to 70 percent. You still focus on productivity because it can be achieved at any occupancy level. When you are achieving a higher productivity level, having incentives is smart when business is good or bad.InnovationThat is a natural by-product of focusing on increasing productivity. Getting your team focused on what brings better work processes to the table is powerful. Your leaders and staff all have ideas and when you set the stage to welcome those initiatives people will appreciate you for taking their ideas and making them a reality. Many hands make light work, my mother would always say. Being more productive is not about working harder, it is about working smarter. If you can study the processes and materials, you will find ways.Efficiency is doing better what is already being done. ~ Peter DruckerBack to the other bucketsOnce you have your payroll positions organized and the baseline established, do the same processes with the schedules and the daily tracking for the front office, food and beverage service and kitchen operations. In the food and beverage space it is covers you want to measure against the hours worked. A cover by the new definition is anyone who you serve who orders any food or beverage item. A table of four who all have a meal and drinks is four covers. A table of four that orders chicken wings to share and a round of drinks is four covers. A table of four that orders a round of drinks is four covers. Training your staff to record proper cover counts in your point-of-sale system is key.Having a manager in place that sees the value in better productivity is essential and part of the culture you want to promote and reward.Make sure this conversation is part of the hiring process as well as the merit review discussion.

When Arnaud Bertrand and Junjun Chen finished their studies at Ecole hoteliere de Lausanne in 2008 they went on to set up HouseTrip, an alternative accommodation start-up which would compete head-to-head with Airbnb and other online travel agencies.Initially the couple had just a laptop, an internet connection and an idea. They went literally from zero to annual revenues of 100 million dollars within just five years or so. Junjun takes up the story. "We were still in school, doing our second internships. We were in London and wanted to go to Scotland but we were students so didn't want to spend too much money. So we wanted to rent an apartment in a nice, traditional Scottish house. We did find one through craigslist but the logistics part was very painful because we needed to contact the owner by phone and arrange payment by bank transfer. So it was just really painful."They had - by chance - stumbled upon a gap in the market and wondered why it was that although online travel agencies like Expedia and Booking.com focused on hotel bookings, no one was providing similar services for holiday homes. "We said, 'look, no one has done it. Let's do it ourselves.'"That was easier said than done. The first major challenge they faced was how to raise funding, based on little more than an idea. "(We had) no track record and no work experience because we had just studied at EHL," says Arnaud. As it turned out, some of their EHL classmates were 'crazy enough' to invest in the new venture and helped to get the project off the ground.That initial funding helped but Arnaud and Junjun would need to go on to raise substantial funds from venture capital, some seventy million dollars over several years. Part of the problem they faced was in marketing the start-up. They would raise millions but would end up spending massive amounts too, pumping money into keyword marketing."Most of [the money] went on marketing and hiring," says Arnaud. "We had a fairly large team, north of 200 people by the time we sold the company (to TripAdvisor for an undisclosed figure in 2015)."And their biggest mistake? "I would say probably using Google or paid marketing as our main acquisition channel," says Junjun. "Basically it works and we became addicted to it. And then at one point we couldn't get rid of it.""The best marketing is free marketing," adds Arnaud, whether that's word of mouth or getting media coverage. That means engaging with journalists and trying to concentrate on public relations rather than spend huge amounts of money on digital marketing, which proved to be a losing prospect.But to get the right word of mouth, you need to make sure you have a great product. "No one is going to speak about a so-so experience."Eventually, after several years of scaling up the company, Arnaud and Junjun chose to exit their venture rather than aim for an initial public offering or IPO. (HouseTrip is now one of 20 travel media brands belonging to TripAdvisor). "I don't have any regrets", says Arnaud. "We sold at the right time.""You don't have so much strategy as you have dreams. Of course you dream of the best possible exit from your company but you have to be realistic and opportunistic as well."Now they've set up a new virtual reality dating company, LovInVR, and plan to learn from their mistakes by focusing on building the brand rather than spending millions on performance marketing.Arnaud says that, after selling the company, he wrote a 600-page book, more for himself than for possible publication, on the lessons learnt, "especially all the mistakes we made which were many.""We created an internet start-up that, 10 years down the line, is still alive, that's already success ... It's actually why being an entrepreneur is so fascinating because you get to learn so much from what you're doing."HotelTonight: An integrated approachAnother tech firm which is focusing on brand building to get its message across is HotelTonight, which has just celebrated its seventh anniversary.HotelTonight VP, Amir Segall, came to Ecole hoteliere de Lausanne recently to speak to students about the company which aims to offer clients the best deals for last-minute hotel bookings via its mobile app.Segall told Hospitality Insights that brand building is critical for the company. Brand awareness, he says, is its biggest opportunity - and challenge."We feel we have a really good product and have mastered the customer experience. So it's really about growing that brand awareness, letting more people know about this great product, this great service you can use, and the way we're dealing with that is that we have an array of marketing initiatives, starting from online marketing, focusing on mobile and trying to stand out and differentiate the way that we speak about our brand."In addition to PR activities, HotelTonight has formed strategic partnerships with the likes of Chelsea Football Club in London and Madison Square Garden (home to the Knicks and Rangers) in New York. For fans of these sports teams there's an obvious connection as they'll be looking for hotel accommodation when going to away matches, but there's also a brand relationship. "(This) is a very good way for us to associate ourselves with brands that have more awareness than we do and really create strong trust with customers."The partnerships are part and parcel of HotelTonight's branding and marketing mix, which also includes online and customer relationship management (CRM) activities. "We feel that you have to have a really integrated marketing approach so we want customers to see us in different places and this way we believe we're creating trust." The company has recently released HT Perks, which the company regards as a 'modern, innovative take on the traditional loyalty programs provided by legacy desktop OTAs (online travel agencies).'An IPO might be an option in the future but for now HotelTonight is focusing on its core business. "It's about becoming kind of the most prime way to book a hotel last minute and we like to think of ourselves as a mobile OTA. So we want people to be thinking about us, to be repeatedly using us as the mobile option. And so that's also what we focus on.""So right now we're very much focused on mobile, continuing to build the business, growing the business, expanding in the markets where we operate. And that's the thing that we're focused on right now."Learning from experienceHouseTrip co-founders Arnaud Bertrand and his wife Junjun Chen are also focusing on their new business, LovINVR, determined that they won't make the same mistakes this time around. "I'd say we're less naive about it," says Arnaud, adding that they believe virtual reality will be the next big thing in the digital sphere. "Dating in virtual reality completely makes sense for us. So we think the potential is absolutely enormous.""I think we're a tiny bit wiser after the HouseTrip experience, so we're trying not to repeat the mistakes that we made at HouseTrip. But I'm sure we'll make plenty of new ones." That means a more cautious, organic approach to growing the company and building brand awareness, rather any sort of dependence on pumping millions of marketing dollars into online advertising.In a presentation at EHL last year, Arnaud advised would-be entrepreneurs not to push for growth in revenue, but rather to focus on creating 'a great product that people love', even if it takes several years."My mistake at HouseTrip was to choose not to develop a brand but to go for so-called performance marketing, so to spend a lot of money on Google, buying keywords on Google and so on and I continued to do so because it worked. We were, at one stage, spending north of 40 or even 60 million dollars a year with Google."While the company was earning 70 to 80 million dollars, that still made sense. But once competitors with deep pockets began bidding for keywords, and potential customers began going directly to Airbnb and other companies than use Google search, the cost of keyword advertising became a major issue as traffic fell."It's a bit technical but that situation led us a stage where we were paying 60 million to Google still, but instead of getting 90 million, we were getting 50 million back. So we were losing money and that's a bad situation to be in.""So my recommendation would be, instead of (using) performance marketing where you don't grow your brand, try instead to go the harder way, grow your brand. It's harder, it's a lot more work, you need to spend all day calling journalists, involving your community, to develop positive word of mouth and so on ... but it's a great investment because those people will come for free and they will spread the word if your service is good.""So I would recommend you spend zero money on marketing and that's what I'm going to do with LovInVR."Dr Maggie Chen Meng-Mei, associate professor of marketing at EHL, writes:A strong brand focuses on providing a better solution than competitors can offer. Through the delivery of its unique value proposition, a brand grows its fan base and benefits from the word of mouth of passionate advocates. These statements remain true, even with all the emerging digital marketing tactics.The challenges of branding are never about using the newest digital tactics, but cleverly leveraging owned, paid, and earned channels to reach, convert, and retain customers. In the digital world, the traditional media and promotional mix (promotion, advertising, public relations, personal selling) still work.Instead of bidding for keywords, focus on finding customers who may need your solutions, as shown in the partnership between HotelTonight and Chelsea Football Club. Be present - or better still, top of mind - when customers discover they have a problem. An effective solution may convert a first-time user into a repeat customer or even an advocate.As for the new approach taken by LovInVR, which is relentlessly executing its value proposition, it will organically build its own fan base, and eventually become a powerful brand.

With this in mind and without further ado, here are several things you need to know about these issues, as well as several tips that will help you deal with them as efficiently as possible.Adequate emergency managementThe first thing you need to know about running a restaurant is the fact that the greatest touristic hotspots commonly get hit by all sorts of disasters. Floods, fires and even hurricanes occur with a disturbing frequency, which is why you need to find a way to do something about this and do it fast. Evacuating a hotel is not the same thing as evacuating a residential home and having an adequate plan is paramount.Apart from this, most accidents are caused by a human factor (according to some estimates between 50 and 95 percent), which means that the more guests and staff you have, the higher the probability that something will go wrong. To avoid this, you need to heavily invest in your emergency systems like fire alarms and smoke detectors, as well as to make sure that the expiry date on your extinguishers is far off.Finally, things like drills and cooperation with various government agencies are something you simply can't afford to ignore. Overall, this is one of those things where you're acquiring skill and prowess you sincerely hope you'll never get a chance to apply.Theft preventionThe next major issue you need to focus on is the issue of theft prevention. This is particularly troublesome when it comes to hotel management, due to the fact that the danger sometimes comes from the staff themselves. Keep in mind that these are the people who have an access to your room, which means that merely locking the doors is futile. Therefore, as a hotel manager, you need to do a thorough background check on every single person you bring into your employ. Sure, some may argue that you can't be picky, seeing as how most of these jobs are entry-level and are paid as such, still, bringing an unreliable individual on your staff can horribly backfire.Another way to make your hotel much safer is to invest in a high-end security system. In the 21st century, this usually involves things like access control, CCTV monitoring and a gateway control. It is also possible to minimize the effort of maintaining a high-end security and completely automating your hotel's security. This can allow you a complete insight into all that's taking place at your hotel, as well as allow you to work with a bit smaller staff. The importance of the latter was discussed in the previous paragraph.Protecting your staffIn the past, there was a misconception that the customer is always right, which led a lot of businesses (from various industries) along with a dark path. The greatest problem with this doctrine is that it usually involves abandoning your staff members to be abused by obnoxious clients in hopes of retaining them. Needless to say, this is an idea with a potential to horribly backfire in more than several ways.First of all, we can't stress out enough just how important it is to create and maintain a productive, well-motivated staff. People you can rely on are indispensable, yet, if you show them day in and day out that they are not your top priority, you will likely face a high talent abandonment rate. In other words, as soon as someone becomes experienced and reliable, they will quit and force you to bring in someone new to fill in their gap. This is a problem that every single industry out there faces, yet, in the hotel business, it is an even greater deal, seeing as how your staff determines 100 percent of your brand's effectiveness and even its brand identity.In conclusionAt the end of the day, by raising the overall level of safety in your hotel (from all of these three aspects) you can improve the overall ambiance in the place and create a much more pleasant environment. In turn, you will improve the overall business model within your organization and set your hotel on a path towards growth, expansion and inevitable success.