There is a common misconception in the marketplace of exactly how you define a target market. At the very least companies define their target market using specific demographic criteria such as age, income, location and professional title. Then, there are companies who add in some psychographic information such as hobbies, interests, travel habits and buying behavior. This information is all important...but it is only 25% of the definition of who is the ideal fit for your property. If you were to throw a dart at a dartboard, the demographic and psychographics of your target market would represent the outermost ring of the board. This means that if you are targeting all of your marketing and sales efforts using only demographic and psychographic information as your ideal market criteria, you will have a tough time hitting a bulls eye with any consistency. This translates into wasted time, money and resources marketing to the wrong people - a sure sign your property is out of alignment and you haven't correctly profiled your ideal customer. Here are telltale signs that your property is out of alignment: READ MORE

If you are a private hotel operating company and have built your company on providing third-party management services, there will come a point in time when you will most certainly question your own strategy and its direction. Can we really build sustaining value if we don't own our hotels? Can we attract and retain quality talent if we don't have a substantial number of hotel assets under long-term control? Is there sufficient margin in the management business to sustain the company for the long term? These are just some of the questions that you will be faced with in exploring your alternatives. READ MORE

Private hospitality companies have many important challenges - from ensuring quality for customers, to developing a sustaining culture and brand, to building a great workforce, to building shareholder value, to aligning investor, customer and employee interests. Effective corporate governance can contribute real value in forwarding the purposes of the company. And this is not just important for public companies; it's an imperative for private companies as well. All companies need a formal governance structure. That's the easy part. Elect a Board, hire senior management, and develop a structured decision-making environment. Delegate, empower and hold people accountable. Develop a meaningful business model and strategic plan for your business. The real question is - with all of this formal structure in place, what governance model adds value to the enterprise and eliminates waste? The answer: governance based on Valuable Senior Purpose, Valuable Communication, a Culture of Transparency and Alignment. READ MORE

It's hard enough to not worry about our future as we sink into a deepening recession but from these trying times come glimmers of hope from very determined and creative people. Let's face it, when the going gets tough, the tough needs to pull itself up from the bootstraps and get going. And the best way to do that is to out smart your competitor and find creative ways to market your property. I've put together a list of some tools that can be used to help hoteliers make it through the next few years. READ MORE

How many extra room nights do you have to sell to make an additional $1.5 million in profit? No matter what size or type of hotel you own/operate or what market you compete in, your answer most likely is "a lot more than I might be able to in today's competitive climate." Ironically, few hotel owner/operators think in terms of extra roomnights needed to be sold when weighing the pros and cons of renovating a property and/or reflagging and repositioning it. This is just one reason why so many renovations and reflaggings fail to recoup an adequate return on investment and why capital markets for such projects today often are deemed too risky. These and dozens of other "cancers" are blackening what otherwise undoubtedly would be a much-brighter profitability picture for lodging. Due diligence means 'do your homework,' which includes many steps along the road to success. Let's look at eight crucial areas that you will need to focus on... READ MORE

It's tough out there nowadays and there's no denying it. This miserable economic climate that prevails has caused most hoteliers to write off 2009 with only hope that 2010 will be much better. But we can't afford to keep our heads in the sand for a year and expect to pop it out and everything will be fine and dandy, as though we are waking up from a bad dream. That type of fairy dust just doesn't occur in the real world. Hoteliers need to keep their head above water and do more than tread it-they need to find tools to build a proverbial raft to stay afloat. READ MORE

I'm amazed at the current turn-over rate at a majority of hotels. It's almost as though the personnel department is like a revolving door. Instead of offering career development for leaders, hotels tend to be offering jobs for lackeys. It's my opinion that there seems to be a real disconnect between hotel owners and their staff. Throughout my career I have been approached by a multitude of owners who would brag to me that they hired a general manager for a pittance wage. On top of that, they would be tickled pink because they were able to schedule the GM to pull a shift or two at the front desk. READ MORE

As spas have become a must-have amenity at four and five star luxury properties throughout the world, we're called on more and more to create a signature spa brand or identity for many of our clients. While our approach remains the same, and the function of a spa remains similar from property to property, what we've found is that there is no one look or trend that translates completely from region to region. READ MORE

As every chef knows, providing fresh, wholesome, attractive seafood is the desire of every hotel's food and beverage operation. However, providing customers the seafood they want in an increasingly environmentally-conscious world can be a difficult task. Numerous issues confront us in today's seafood marketplace. In fact, more often than operators like to admit, the products they think they are buying are not what they are getting. Besides mislabeled products, another major concern is agreement on a clear, and universally accepted standard for "organic" seafood. But, with proper oversight and a desire to be proactive, you can create a program that is both in tune with the wishes of today's hotel guest and creates value for your company. READ MORE

The spa industry is sitting in the vortex of a perfect storm... The first front in this storm system is an aging population who have the desire and means (and as they retire, the time) to do what it takes to "stay forever young", as evidenced by the fact that of that 60 is the new 40. The second front of the system is that many are defining youth with matrices that only start with external looks and extend well into more complex issues of quality of life, disease prevention and psychological well-being. The third front of the perfect storm is related to the American medical system. Our health care system is failing. To that end, spa regimes, meditation, nutritional supplements, and lifestyle classes are some of the ways that consumers are supplanting their allopathic care. The last component to complete the storm is the fact that boomers are savvy, result-driven consumers who collect experiences the way their parents collected possessions... READ MORE

The difference between a franchise agreement and a management agreement often comes down to the almighty dollar. Each agreement provides a different level of control and access for both the hotel owner and the brand owner. So which agreement should a hotel owner choose? That decision comes down to the brand operator, the lender and costs considerations. While some hotel owners flirt with management agreements, the franchise agreement is becoming increasingly common, and seems to be taking hold even within the full service sector of the hospitality industry. READ MORE

Looking for an asset manager can sometimes be equated to looking for Waldo. Everywhere you glance in a "Where's Waldo?" drawing you think you spot the cartoon character wearing his famed red-and-white striped apparel. Upon closer inspection, however, you realize that the red-and-white striped image that caught your eye is simply camouflage on another look-alike. Sound familiar in your business? Unlike Waldo, owners wear many hats - especially multi-property owners and those with supplemental real estate investments outside of hospitality. Managing a vast portfolio can't be done alone, so oftentimes these owners hire a management company to oversee day-to-day operations. But who's watching the watchdog when the asset isn't performing and investment objectives aren't being met? READ MORE

It's a New Year, and like most folks, dear reader, some of your resolutions were once again repeat resolutions: to eat healthy and to exercise more. In fact, these two resolutions are number one and number two respectively on the New Year's resolution chart since they started keeping track. With this in mind, hotel food and beverage departments must take a good hard look at their menu offerings for kids. No longer is a children's menu filled with fried foods and buttered noodles acceptable. READ MORE

Managers and employees need to be better prepared to work in the fast paced hospitality industry. The rigors of the economy, community interaction, public policy and keen competition need to be handled by well prepared managers and employees. Education, training and professional development has become increasingly important and in the current climate education appears more important than ever. The issue for many employees and or their employer is when is there time to get the needed education and or training? This article provides a guide to those thinking about and or seeking additional education in general and more specifically a distance education (DE) option. There are many choices but the issues of fit and program quality are key for student success. READ MORE

So often, hotel and resort managers view fitness centers and related services as merely a "value-added" amenity, provided to reinforce a positive guest experience. Granted, this is without question, a valuable role. But at the risk of sounding harsh, it's a perspective that is often short-sighted and may eliminate a wealth of profit-generating potential inherent to any fitness center when managed with an eye toward generating revenue. That being said, I thought it would be valuable to break some of these down and demonstrate just how a fitness center can go beyond merely pumping up your guests, and pump up your bottom line: READ MORE