HOTEL BUSINESS REVIEW

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Brenda Fields

Outsourcing over the past several years, has taken on a negative perception in the market place. It has recently been associated with the idea that big businesses outsource some of their support services and functions in foreign countries in order to reduce expenses, and that this is invariably at the expense of customer satisfaction as well as local jobs. An example of outsourcing gone bad is technical support services moved to foreign countries where the technicians who are not fluent in the customer's native language, try to communicate complicated technical information and provide solutions to problem. And, to make matters worse, the service is also priced at a high rate per minute; so inefficient problem solving is very, very costly to the customer. But, in the case of small independent hotels, outsourcing can provide major benefits which would allow these properties to provide specific services and expertise that they would not be able to offer because of the costs associated. As selling rooms is the primary goal, these enhancements only create an opportunity to increase demand for your property. READ MORE

Brenda Fields

"Build it and they will come" may work in The Field of Dreams, but in the hotel industry, the more accurate sentiment may be "Build it RIGHT and they will come". To realize the highest room sales potential, it is important for owners and managers to make sure that each room is configured to its highest and best use. Many times, with very little expense, room revenues are significantly impacted through occupancy and/or average rate increases, by making minor adjustments. This is especially true in the case of small, boutique hotels, where each room sold has a significant financial impact. READ MORE

Mike Sawchuk

In November 1997, a terrorist attack in the ancient city of Luxor, Egypt, took the lives of sixty-eight people and left scores more injured. However, the deaths and injuries caused by the attack were just the beginning of the problems it caused Egypt. Tourism, the lifeblood of the country, went into a tailspin, resulting in mass numbers of hotel- and restaurant-related workers losing their jobs in a country that already has chronic high unemployment. A few months later, realizing just how much the incident was affecting business and the economy, Egypt started a $4 billion marketing campaign to woo visitors back. In addition, they dramatically stepped up security throughout the most visited sections of the country. In effect, the country is still reeling from the incident and its impact on the tourist industry. Just imagine what would happen if something even more serious were to happen in Egypt or any other country in the world-such as the spread of H5N1 avian flu. READ MORE

Jane Segerberg

Working through the maize of spa consultancies is becoming increasingly difficult. The variety of entities offering assistance is expanding, yet the quality of assistance is being diluted. Why is a qualified consultancy important to your project? You can probably name numerous reasons. In addition to those that you already know, consider the following: The spa Industry has undergone rapid growth. When spas first emerged in the hospitality industry, a resort or hotel was very unique because it had a spa. Soon spas became an "expected item" in resorts and hotels much as swimming pools were expected in the 70's. Currently, the phenomenon has evolved to requiring much more than just "having a spa" to be unique in the market place. It now demands a very unique and compelling spa concept that delivers a high level of service and draws business and attention to the property. What once was a unique feature just by its mere existence, has become fairly mainstream and is now seeking to distinguish itself once again. READ MORE

Steven Ferry

It is hardly surprising buyers and media alike are confused by the different models available to guests for vacations when a good part of the industry is, too. Which makes the two upbeat and well-attended IMN symposiums in Orlando between April 18 and 20 most timely. So what are these alternatives? Let's define terms first... READ MORE

David Benton

The global travel market is one of the fastest and dynamic growth businesses on the planet. Not only are business travelers jetting around the globe attending to, and managing the globalization of commerce, but leisure travel is just as robust as the so-called 'tourists' look for more adventure and uniqueness in their limited free time. How has the travel and hospitality industry adjusted to meet this insatiable demand for both business and leisure travel? READ MORE

Andrew Glincher

The retail and commercial space within a hotel is one of its most important components. In some ways, it helps define the image of the property; a chic spa or hot new restaurant can generate publicity and excitement that brands the hotel in a very positive way. It also provides important services to hotel guests and having the right mix of retailers, restaurants, and other amenities contributes to the experience people have when they stay there. And of course, it provides a significant revenue stream. Most managers are very conscious of maintaining the correct balance for their property. But what are the best techniques for achieving that? READ MORE

Andrew Glincher

New rules governing eligibility for overtime pay for various types of employees have significant implications for the hotel industry. Designed to clarify and update what were perceived to be ambiguous and sometimes confusing regulations, the U.S. Department of Labor has redefined what constitutes exempt and non-exempt employees. Although the new regulations do not alter the fundamental rationale behind the Fair Labor Standards Act's overtime rules - that employees who work over 40 hours per week must receive overtime pay unless they are otherwise exempt - these new developments are extremely important for hotels, especially those whose workforces are not governed by collective bargaining agreements. READ MORE

Andrew Glincher

Under most circumstances, hotel owners want to maximize the value of their properties. However, doing what appears to be the opposite - arguing that your property is worth less - can actually have a positive impact on your bottom line. Having a lower valuation is desirable for the purposes of real estate tax assessment. The lower the valuation, the lower the property taxes. At a time when the economy is weak and the hospitality industry is suffering, any cost-saving can be helpful and a reduction in property taxes can sometimes provide a good financial cushion. READ MORE

Andrew Glincher

The economy has caused serious problems for numerous hotel properties across the country, as it has for every segment of the travel and hospitality industries. But challenges for some can mean opportunities for others. With so many properties in distressed financial condition, there are buyers in the marketplace, actively seeking to identify opportunities. There are individuals and companies with the resources to buy and hold onto a promising hotel, and ride out the tough economy. READ MORE

Andrew Glincher

What should a hotel manager do, for example, if an individual wearing an objectionable anti-war tee shirt appears in the lobby of the hotel? What if it's a group of people with tee shirts? What if they are carrying signs? What if they are legitimate hotel guests, who have reserved and paid for rooms? Can you ask them to leave the lobby, or the restaurant, or other "public" areas of the hotel? Does it make a difference if the person is simply wearing a tee shirt, but doing so quietly, as opposed to handing out flyers or circulating a petition? With the international political climate being what it is, this incident has some interesting implications for hotels as well, particularly since by their nature, they play host to diverse visitors from every country in the world. READ MORE

Andrew Glincher

One of the most difficult decisions a hotel owner can face is whether or not to put a property up for sale - especially during a down economy. Values are less than they would be in a boom time, and there are fewer investors and fewer dollars available for acquisitions. Nevertheless, property owners aren't always lucky enough to be selling in a strong economy; many times, it's necessary to sell under less them optimal circumstances. Lower interest rates and financing costs can sometimes contribute to a greater price or at least help to offset declining revenues. READ MORE

Andrew Glincher

How do you explain gender discrimination to someone from a country where women are prohibited from walking in the streets unescorted by a man? How do you explain racial discrimination to someone from a country that is still ruled by a caste system? How do you resolve disputes among supervisors and subordinates when the employees are from countries that have been at war for centuries? There is no industry in which these questions create more of a real-world challenge than the hospitality industry. With many layers of employees - ranging from management to entertainers to housekeeping and maintenance staff, whose formal education may differ and who may be relatively new to this country - the hotel industry has a very diverse personnel structure. READ MORE

Andrew Glincher

Not since the building boom of the late 1980s was followed by the recession of the early 1990s has the hotel industry faced as trying a time as it does today. As then, the period of prosperity in the late 1990s and the seemingly ever-increasing demand for hotel rooms caused significant new construction in markets around the country. Similarly, an economic slide has caused a sharp decrease in business and leisure travel. Today, we have the added factor of the fear of terrorism causing many would-be travelers in the United States and around the world to feel more secure staying closer to home - placing the entire travel and hospitality industry in a precarious position. READ MORE

Andrew Glincher

Many businesses in every industry go through periods in which they have to implement layoffs. The hotel industry is no exception. Since many of a hotel's costs are fixed - the property needs to be maintained, the restaurant needs to stay open - often the only way of reducing costs in the face of revenue shortfalls in through layoffs. Layoffs are always painful, but experienced managers have learned that they are sometimes necessary to protect the long-term viability of the business. Making these situations even more difficult is the possibility that laid off employees - who may be hurt and angry - will argue that they have been victims of discrimination. How do you prevent this type of difficult situation from leading to litigation? READ MORE

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