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ISSUE #2 / DECEMBER 2005
HOSPITALITY THE MAGAZINE FOR THE HOTEL, TRAVEL AND TOURISM INDUSTRY IN THE MALDIVES
Service has no Color Customer Intelligence Selling without a Script The food production factory WTA 2005 Winners Water Saving Tips Spa Butlers
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EDITOR’S NOTE IMPRESSUM Publisher This magazine is created and published by: Silversea Investment Group Pvt. Ltd. H. Meheli Ge (2nd floor) Kurangi Goalhi Male Republic of Maldives Editor-in-Chief: Ahmed Saleem Editor: David Kotthoff Design Consultants: Mooinc Pvt. Ltd. An online version of this magazine is available at: www.hospitality-maldives.com Contact Information Please send your feedback, questions and comments to: info@hospitality-maldives.com Also please notify us at this email if you would prefer not to receive further issues of this magazine. For information about the content of this magazine please contact David Kotthoff at: david@hospitality-maldives.com For advertising rates please write us at: ads@hospitality-maldives.com Print
Dear friends and colleagues, Welcome to the second issue of Hospitality Maldives. One month has passed since the distribution of the magazine's first edition and the responses we received in return were unanimously positive and very encouraging. This proves that we are on the right track and I would like to seize this opportunity to thank all those who have taken the time to email us with their comments, suggestions, ideas and kind words of appreciation.
Loamaafaanu Print Cover Photograph
Despite the fantastic feedback, I'm afraid that this issue again will not feature an
Aishath Sodiq Nasandhura Palace Hotel Photo by Mooinc Pvt. Ltd.
article written by an employee of the local hospitality industry. Reading through this edition you will realize that certain things have changed compared to the November
Articles
issue and we strive to continue improvement on a monthly basis. That however is
All articles are property of their respective authors / owners and have been provided with the great support of the following individuals and institutions:
only possible with your support and I kindly request you to email me at
Bhanu Chopra Tony Eldred Hakan Falk Prof. Steven Ferry Susan Friedmann Cheryl Griggs Rick Hendrie Judy Hoffman Douglas Kennedy Chris Longstreet, CHA Ernest Lotecka, PhD Harry Nobles Alvah Parker Harry Richards Susie Ross Luis Miguel Sanchez Bill Schwartz Mark Wardell www.amanet.org www.ehotelier.com www.ific.org www.restaurantreport.com www.worldtravelawards.com
david@hospitality-maldives.com with any idea, suggestion or article you might have in mind. With your active involvement in this project, something great will be created. In addition I would like to encourage you to visit our website and use the feedback form to register for a monthly subscription. That way we are sure that the magazine reaches the right place at the right time. I look forward to receiving your emails within the coming days in order to already let the first issue of 2006 carry some of those ideas and meanwhile wish you a 'Happy Reading'. Yours in hospitality, David Kotthoff
Disclaimer No parts of this magazine or its content (photographs, articles or parts thereof, design, layout) may be reproduced without the consent of the respective owner. Silversea Investment Group Pvt. Ltd. or any of its associates cannot be held responsible for the mis-use of the information and intellectual property provided in this magazine.
HOSPITALITY MALDIVES DECEMBER 2005
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in this issue:
CONTENTS
IN THIS ISSUE: EDITOR’S NOTE 3 SERVICE HAS NO COLOR 8 Chris Longstreet, CHA on racism in the service industry!
THE 11 P’S IN A 16 REMARKABLE BRAND Learn how to make your brand a success.
. WATER SYSTEM 20 ENERGY SAVING TIPS
. SELLING WITHOUT A SCRIPT .26 Increase your sales efficiency by applying natural and appropriate communication. . Photograph by George Fischer
THE 20 BIGGEST 30 HOTELS IN THE WORLD . CAFFEINE 32 Everything you need to know about it, and more.
TRAINING 34 It’s not a universal panacea.
SPA BUTLERS 38 Adding value to Hotels and Spas alike.
80 TIPS FOR 42 BUSINESS SUCCESS . TIME MANAGEMENT 48 10 Tips for managing your time more effectively.
WORLD TRAVEL AWARDS 56 THE 2005 WINNERS Photo by George Fischer, courtesy of MTPB
THE LAST WORD 58 HOSPITALITY MALDIVES DECEMBER 2005
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SERVICE
by Chris Longstreet, CHA
Service has no color! I
left home on a trip recently that took me from Grand Rapids, Michigan to Houston, Texas. The cheapest flight I could get took me through Chicago’s O’Hare Airport. The flight to Houston through Chicago was uneventful. The conference I attended was outstanding. On Friday, I returned home taking the same path – Houston to Grand Rapids through Chicago.
It started when … For a graduate class in multi-cultural issues in education, I read several assigned readings on racism on my flight from Houston to Chicago. I was intrigued by the readings and my interest was peaked by one chapter that referenced the racist actions of white people in places of public accommodation. The author related a story of an African-American couple that went to a restaurant on a slow night and were basically refused service. The couple waited near the door and servers simply ignored them. No one else was waiting to be seated and there were plenty of tables available in the dining room. But still, no service. The man was outraged and decided to leave. The wife stopped him outside and together they discussed their reaction. Eventually, they went back in and
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spoke to the manager and politely pointed out the racist actions of the staff which sadly, still failed to be addressed. . Another incident stated in the reading involved a wealthy African-American business man who received poor service on a regular basis at a restaurant which he frequented on a consistent basis. His white friends spoke highly of the service they received. He, however, felt that the service was slow and that the attentiveness of the staff when he dined was lacking. He then joined his white associates at the restaurant on one occasion and noticed that the service was outstanding – so different than when he was there with just his AfricanAmerican friends. It seemed the restaurant had a serious problem with the color of his skin. Another story outlined incidents of racial discrimination in hotels. As a professional in this industry, these stories hurt. The chapter outlined several stories where people of color were typically given the “not-so-desirable” rooms near the end of the halls, near elevators, and near other centers of activity. For people of color, service is different, accommodations are not as good, and the entire guest experience suffers as a result. I couldn’t believe what I was reading, but it was true.
SERVICE
As a professional in the hospitality industry, I was saddened by these stories. I was saddened that people who claim to be hospitality professionals – professionals who offer a warm welcome to all guests - could act, and would act, in such a discriminatory and unfair fashion. Being a white male, I guess I just have never experienced those things. I wanted to put my head in the sand, plug my ears – I didn’t want to believe any of these stories were true.
And then …. Maybe it was my awareness of the subject of racism that made what happened when I landed at O’Hare Airport so eye opening. I was hungry and hadn’t eaten lunch so I was searching for something quick to eat before my next flight. With a sigh, I stopped. ”Another fast food meal,” I thought. I waited in one of several short lines. I noticed that in line there were a diverse mixture of people of various races waiting with me. The crew of the restaurant was entirely AfricanAmerican. I noticed that they were having a good time and seemed to be enjoying their work. They were laughing and the atmosphere seemed very friendly and fun. Now remember that I had just spent time reading a chapter on how service was given differently to people based on their race. I stepped back and decided to observe the staff to see if they treated people differently based on the race of the customers they served. I watched an Asian man get served. The server asked, “Who’s next” and didn’t even look at the man standing at the counter. As he placed his order, the cashier gave no response, didn’t repeat the order, and simply said, “$6.54.” He handed his money to the cashier and received his change with no response. When his food came, the server simply slid the bag of food to him and the man walked quietly away. I stood in the back of a line and watched the server take the next customer. The white female approached the same person and this time the cashier didn’t even ask for her order. Once again, the server didn’t repeat the order and simply stated the amount and waited for the customer to provide the money. Change was provided with no announcement of how much change was being given. With the same reaction, the food was placed in a bag and slid to the customer and off she went to catch her flight.
treated the father and his son so nice? I placed my order and got the following response: “Will that be all?” I responded in the affirmative. “$5.97.” I handed over $10 and received $4.03 in return. The server said nothing. I had ordered the white meat chicken tender strips value meal. I waited and watched the other servers. My large Diet Coke was slid to me. Moments later, my bag was slid to me with no verbal discourse with any employee. “May I have a straw?” The server handed me one. “May I have two honey mustard sauces please?” With no eye contact, the server reached down and slid me two packets of honey mustard sauce. I left.
“Have we been so conditioned to expect what we define as poor service when in fact it was discriminatory service?” I didn’t walk away mad. I had the right too, but I chose not to. Or did I? Is what I experienced something that goes on everyday and I (we) simply did not see it? Or, have we been so conditioned to expect what we define as poor service when in fact it was discriminatory service? Who’s to blame?
But it didn’t stop!
. Now this subject was under my skin. I didn’t believe what I was hearing and feeling? Are people in this industry that discriminatory? In sharing this with a peer, she’d related her personal experience: As an African American, I can tell you that there is a definite difference in the level of service provided to people based on their color, race and many times based on their perceived class. I am a witness that many non-white people are treated with less consideration than white people. In the airports, we are more readily subjected to searches by security personnel who don't make eye contact with us, speak to us in a condescending manner, and take immediate offense if we say something that they disagree with.
. Curious, I moved to the line where this server was taking orders. In front of me stood a father and his son – both African-American men. This time, the server’s attitude changed. “Welcome. May I take your order?” The server did know how to be polite! After the men placed their order, the server repeated the order, waited for acknowledgment that is was correct, and then announced the total stating, “That comes to $11.32.” The man handed the server $20 and then received money back. The server said, “$8.68 is your change, and your order will be right up.” When the food was ready, the bag was handed to the man and the server stated, “Here you go. Have a nice day!” He responded with a thank you and off he and his son went. It was my turn. I stepped forward. I waited for a response. The server wasn’t even looking at me. “Can I help who’s next?” Whoa! What happened to this person who just
I was asked to step aside by a white female security worker at the boarding gate. I made the statement, "Gee, I have been searched at every security checkpoint, is there a sign posted on me?" I made this statement in a joking tone. Any reasonable person within earshot would have known that I meant no harm. The security officer told me that if I continued to refuse to follow her commands that she would bar me from the flight and that I had better move over and accommodate her requests. I was shocked and offended. However, because I was accustomed to this type of behavior, I moved over, removed my shoes, extended my arms, and met each of her requests. When I boarded the airplane I was so angry that tears welled in my eyes. I began to write a letter to the president of the airline regarding this matter. By the time I arrived at my destination, I had calmed down and I discarded the letter in the airport trash. Unfortunately, many people simply HOSPITALITY MALDIVES DECEMBER 2005
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SERVICE
disregard the poor service and fail to confront the issue. That is exactly what I did and that is what perpetuates this type of activity. It needs to be addressed. Racial and color issues go beyond “race against race.” There is, within the black community, what is known as inrace discrimination. My skin tone color is very dark. As a result, within my own race, I am most likely to be treated worse than blacks with light or "yellow" skin tone colors or whites. In fact, I have been the subject of delayed and/or poor service by whites and blacks. It is not uncommon for blacks to disregard other blacks and run to give extraordinary service to whites.
Service is not a male or female issue. Service is not a young or old issue. Service is treating each guest with equal amounts of dignity, respect, courtesy, and friendliness. As a frequent traveler, I wonder if I would get the same level of service on a business trip if I were wearing a suit and tie or my baggy sweats, hooded sweatshirt, and hat. Shall I try it?
Our Suggestion As a professional in the hospitality industry, consider the following activities:
Service Is Not About Color! Service is not about color. Shouldn’t the Asian man, the white female, the African-American father and son, and I, the white male, all deserve the same level of service? Does the AfricanAmerican couple deserve the same service as the white customers? Should color dictate rooming assignments at a hotel and whether service should or should not be given? Good service – great service – is not about the color of one’s skin.
“Racial and color issues go beyond race against race.”
1. Take a personal inventory of your actions. Do you treat guests or customers differently because of their gender, race, culture, age, or looks? Personally reflect on your own actions. 2. Have someone observe your staff and see if they treat guests differently. Have them write down their observations and report back to you. Don’t do it yourself as your employees will know you are watching. Ask a college professor or high school teacher, or even a friend. Pay for their meal or give them a night at your property. Review the findings with your staff. 3. At a staff meeting, list various groups of people, your guest mix, on a white board or flip chart. For example: • Elderly people • People of another race
Service is not about gender. Male or female, everyone should be treated the same. Service is not about culture or religion. American, European, Latino, African, or Asian, everyone should be treated the same. Protestant, Catholic, Muslim, Hindu, or atheist, everyone should be treated the same.
• High schoolers • Families with young kids • A college sports team • A person in a wheelchair
Service is not about age. Whether 18 or 80, everyone should be treated the same. Service is not about lifestyle. It doesn’t matter if the guest is heterosexual, homosexual, or bi-sexual, everyone should be treated the same. Service isn’t about how able our guests are. Whether in a wheelchair, or standing, physically or mentally impaired or not, everyone should be treated the same. Service is about providing the best in hospitality to everyone no matter who they are, how much money they have, or what they look like. It doesn’t matter what country we are in, where we work, or what service we are providing. Service is not a black or white issue. Service is not a tall or short issue.
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Ask your employees to list the stereotypes they have for each category of guests. Discuss how the stereotypes are formed and how they might be wrong. Outline the steps for great guest service for the organization and stress how everyone should be treated with the same respect and dignity. Now, give your employees the tools, resources, and education to deal with this issue. This is not about a brand, or a single company, but about people and our society. We as hospitality professionals can lead the way, set the stage, and become the model for other industries to follow. Chris Longstreet is President and CEO of the Society for Hospitality Management. He also serves as a visiting instructor for the Hospitality & Tourism Management Program at Grand Valley State University. For more information, visit the SHM website at w w w. h o s p i t a l i t y s o c i e t y. o r g o r c o n t a c t C h r i s a t clongstreet@hospitalitysociety.org!
SALES & MARKETING
Meeting Negotiation Tactics
M
aster the art of negotiating and you master the ability to get almost everything you want. Negotiating is considered the number one business skill, and one we all perform daily.
However, some do it better than others. So, what does it take to become a negotiating whiz. The following ten tactics will definitely catapult you in the right direction to negotiate the best deals for business, especially when it comes to your exhibit marketing program:
1. Know What You Want Skilled negotiators start with a detailed plan of exactly what they want from their negotiations. Why should you defy what works? Take plenty of time to thoroughly understand what you want and need from the potential supplier. Formulate lists of items that you're willing to compromise and concede if necessary. Know your budgetary constraints and how they will effect your discussions.
2. Do Your Research Doing research is a key strategy in your negotiating arsenal. Find out as much as you possibly can about your potential supplier. Know what your business is worth to them. Understand their business – the peaks and valleys. The more they want your business during a slow period, the greater your negotiating clout.
3. Rehearse Your Opening Your opening words set the tone for the discussions that follow. Just like an actor with his opening lines, the first words out of your mouth set the stage for the rest of the performance. Make certain that you know exactly what it is you want to say. Craft the words so that your message is clear and concise. Then spend time rehearsing your lines. You want your opening lines to be word perfect.
4. Ask Powerful Questions Asking powerful questions is an essential skill for every negotiator. It not only provides you with strong information on which to build your case, it also creates opportunities for breakthroughs in your discussions. Questions are the most powerful search engine to help you tap into critical information, make evaluations and finally decisions. But, like everything else, they need planning. Each question you ask directs the action that follows it. Take the time to map out what question you need to ask to get the results you want from your negotiations.
5. Become an Information-Monger Even though you're asking powerful questions to get some heavyduty information from your opponent, you want to continually be probing for more. Listen to what's being offered and at every opportunity, be curious, ask for clarification and more information. Become an information-monger, never being satisfied until you have exactly what it is you want from the discussions.
6. Be A Champion Listener So much of successful negotiating comes as a result of great listening. Listening to what people do and don't say. People often tell
you a lot about themselves. Problem is that we just don't hear them because we're so caught up in our own thoughts. When you take time to listen to people they'll tell you about their positions, problems, qualities, likes and dislikes. And, you don't even have to ask them. They do it naturally just in the way they talk. Listen for any sense of urgency to close the deal. Perhaps they want your business to fill quotas. We were given two ears and one mouth; use them in that ratio to help your deal making.
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7. Create A Positive Mood Negotiating in a friendly and congenial atmosphere helps create a more receptive mood. Set the stage with some “getting to know you” talk. Make direct eye contact as you speak to your potential supplier. Tell them one or two personal stories that they might relate to. Your goal is to establish an atmosphere of trust and honesty. Don't just jump straight into your negotiating babble. Rather, take time to develop a friendly rapport so that your opponent feels comfortable speaking with you. You'll both work together more productively in a relaxed environment.
. 8. Be Prepared to Walk Away This incredibly potent strategy is possibly one of the hardest for negotiators to actually implement. How it works is that when you really want something badly enough, and you aren't happy with your opponent's offer, you simply walk away from the negotiating table. One of two things can happen. One, your opponent will concede to your wishes, or two your opponent will let you go your own way. Remember that if you want to use this strategy, have a second potential supplier “in the wings.” Otherwise, if you don't, you'll likely be left out in the cold fending for yourself.
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9. Know the Styles Read any book on negotiating and you'll quickly learn that there are many different styles and techniques to help you through the negotiating minefield. Make a point of familiarizing and learning ones that fit your style of doing business. In addition, learn about the different behavioral styles, what kind of information they need and how they approach negotiating. For example, an analytical type needs tons of data to help in the decision-making process, whereas a more controlling, dominant type only want the facts. Recognize people's differences and use them to your advantage – it's all part of the game!
10. Exercise Silence The old saying “silence is golden” is particularly true around the negotiating table. Negotiating mavens know that when discussing a deal, the first to speak, loses. To be successful it's not wise to dominate the conversation. In fact, the more you talk the more information you're supplying your opponents. So exercising silence will help prevent you spewing out unnecessary stuff. Your silence will also help create the perception that you are a thoughtful and methodical decision-maker. Written by Susan A. Friedmann,CSP, The Tradeshow Coach, Lake Placid, NY, author, “Meeting & Event Planning for Dummies,” working with exhibitors and show organizers to improve their tradeshow success through coaching, consulting and training. For a free copy of ExhibitSmart Tips of the Week, e-mail: susan@thetradeshowcoach.com; website: www.thetradeshowcoach.com
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SERVICE
Listen to what your customers are NOT saying
S
ome of you put customer comment cards on your tables and ask that guests fill them out and let you know how you’re doing. I could put money on the fact that you receive more complaints on those cards than praise. Unless someone was given absolutely outstanding service or the food was just phenomenally prepared, your guests aren’t going to take the time to tell you some of the things you really should know. They might tell you that the potatoes were cold or the salad was wilted, but do they ever mention how the server handled the situation? Probably not; the server is usually only mentioned as an extra in the bad scene. That is because servers sometimes act as if everything that goes wrong is the kitchen’s fault. If we really think about it, they are the last pair of eyes to see the food before it reaches the table; they should have the final say in its appearance. At the risk of seeming pessimistic, I want to caution you if you don’t have many guests filling out those cards. It isn’t because everything is always great. Most of us feel that our comments won’t be taken seriously and nothing will change as a result of our taking the time to fill those cards out. We have become accustomed to mediocre service at the hands of a young, inexperienced person who thinks that serving food is a better way to make money than selling clothes in a trendy store at the mall. We have become accustomed to asking for another drink because our server is busy chatting with his/her friends and wants guests to move quicker and leave more money. We have become accustomed to our servers not having any suggestions about some of the highlights of the menu, in fact, not knowing much about the menu at all! All of these things we have become accustomed to and therefore we don’t even think about asking for a change. Most of us don’t know it could be so much better! Guess what? Your servers don’t know it could be so much better, either. They are getting the kinds of tips they deserve for their lack of attention to guests and the details that go along with them. Your guests are giving what they think the service is worth. When they walk out your door they might tell you that the food was great, or maybe the food was a little less tasty than usual, but they will never tell you that the service was only ok or even bad. Understand that we live in a society where it isn’t ok to be confrontational and tell someone that they aren’t performing well. In our politically correct society, if you tell Bob
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or Jane that you don’t like the way he/she is serving you, you are being rude and demanding. What guests will do is tell you about the food because they never have to meet your kitchen staff. They know they may have to deal with the same server again. We don’t feel like our comments are going to be heard and treated as a comment. We feel like we’re going to be labeled a nasty customer and treated worse. Most customers are forgiving and will give you another chance and return. If, however, they receive the same lack of care in service, they will quietly go away. Who do your guests tell about their bad experiences? They tell their friends, family and neighbors. Sometimes they tell your competition. And when they find out what I do, they tell me at great length and they insist that I go to you and train your wait staff. They want to continue dining in your restaurant. They want it to be more pleasurable than it currently is. What you see is that your staff is taking orders and getting the food out in a timely manner. Your guests see that, too. They want more from a dining experience and they are willing to give more tip money when they get it. When a server suggests wine or particular dishes and sides to go along with them, your guests don’t perceive them as being pushy. On the contrary, when done in a professional manner and with some charm and class, they perceive it as great customer service! Guests may not be able to articulate these ideas to you. They just know that something is missing. Ask any businessperson who frequently dines with potential clients and he/she will tell you he/she knows the best places to take someone for smooth, seamless service. Your staff deserves to know that they could be earning more money. You could be earning more money because they earn more money. You can bring these issues up at your next employee meeting, but most servers never think you are talking about him/her. Another shameless plug for my business! Allow me to come in and interact with them in some role-playing situations. They don’t need to be accused of being guilty of bad customer service; they will figure it out for themselves through the course of my class.
Susie Ross is the President of "Waiter Training" and has over 10 years of experience in the restaurant industry. For more information visit www.waitertraining.com or email Susie at susie@waiter-training.com!
HUMAN RESOURCES
Speak with People, Don’t talk at them!
S
ome of you know that I conduct very realistic roleplaying exercises as part of my “Coaching to Meet the Press and Other Hostile Audiences” workshop. One of the ground rules is that – unless it is a press conference setting – participants are not allowed to “make a statement” at the beginning of the interview with the TV reporter. Many people want to know why. Here are three good reasons: 1. For the most part, your introductory statement will not be used. Think about the last few interviews you have seen where there is some incident that has occurred. Unless they have absolutely nothing else to work with, reporters would rather capture the spokesperson’s comments as (s)he answers one of their questions. It is more spontaneous, more engaging, and therefore better TV. Having someone read a statement can be boring. So unless you are satisfied with providing that statement simply as a means of educating the reporter about the situation before the REAL interview begins, save yourself the time of reading it into the camera. By all means, have a statement to provide to the reporter before (s)he leaves so they have some accurate, factual information to refer to when they are compiling the intro to the piece. Just don’t read it on camera. 2. If you are reading a prepared statement, you are looking down at a piece of paper. That means you are not looking the reporter (and the audience) in the eye while you are talking. Subliminally, reporter and audience get a very powerful message: the spokesperson is at least shading the truth if not lying. That is what we’ve all learned from personal experience. If a person cannot “look you in the eye,” he cannot be trusted. The more you can make direct eye contact with an individual, the more sincere and believable you are. You simply cannot make enough eye contact to appear trustworthy if you are looking down at a prepared statement. But do prepare the statement! Writing down the major points helps you commit them to memory. This will help you recall the “must air messages” when you answer the reporter’s questions. You appear more trustworthy, concerned, and connected to the audience if you don’t have your head down and your eyes averted. 3. People want a dialogue, not a lecture. Remember when you were a student in college and the professor proceeded to lecture from prepared notes? You pulled out your notebook and tried to concentrate and learn. You might have found that you could do it for a little while, but then your mind would start to wander, or
you might even doze. It was when that professor did something to ENGAGE you that you paid attention. The same principle applies when a company spokesperson is giving a speech or providing the organization’s position. If the individual appears to be talking AT you – reading from prepared remarks – you may try to pay attention, but it is hard work. If, on the other hand, that person looks up, makes eye contact, moves to the side of the podium, and actively tries to connect with the audience and speak WITH them, then it grabs your attention and creates interest in what that person has to say. Whether seeking audience participation in a talk being given at a local civic club/professional organization or carrying on an interview with a reporter, the person who is not tied to printed words will be much more convincing and remembered more favorably. This is what you want when your speech or TV interview is over: • • •
For people to remember what you said For them to believe what you told them For them to have a positive impression of you and, therefore, your organization
None of that will happen if you have had your head down reading into a microphone. If it is a large group meeting you have been invited to address or a media interview and you don’t want to forget something important, you may prepare some notes. Just don’t use a word-for-word statement if you can help it. Become familiar enough with the material so that you can, simply by seeing a few words in a bulleted point, recall what you want to say. Then say it conversationally as if you were speaking with another human being. You and your message will be received much better. Whenever I work with executives to improve their speaking skills – whether a public speaking engagement or a crisis interview -- we will spend more than 50% of the time getting them untied from the darn script! Sure, it requires more preparation time than if you just read a statement you wrote or -worse still – mouthed what someone else made up for you! You may be tempted to say that you are too busy to practice this particular speech or statement several times. However, if it is important to you that you come across well, this time invested is well worth the effort. Judy Hoffman is an author, speaker, and consultant who specializes in the areas of dealing with the media during a crisis and handling angr y people. She can be reached at jchent@frontiernet.net and you can find out more about her at www.judyhoffman.com
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FOOD & BEVERAGE
The Food Production Factory
T
he quest for kitchen efficiency is an issue that many businesses are being forced to address due to tight financial circumstances at the moment. Over the years we’ve been called on to examine the operation of many commercial kitchens and I have developed a system I use when I am looking for opportunity. First, lets get totally dispassionate about your kitchen — it is a food production facility, a factory of sorts. Its efficiency is determined by similar rules and principles as those that apply to any engineering factory manufacturing any kind of product. Sure, there are differences; for instance your stock is decomposing rapidly and your environment must be near enough to sterile, but the basics are the same. Your products must be well designed to start with. Each menu item must be saleable, able to be produced with the skills and equipment available, and it must be profitable — it must ultimately be popular and deliver a good margin. The standard recipe is your design tool. This document details all the materials specifications, portions, preparation method and presentation of a menu item. Without standard recipes you have no control over cost and quality. It’s one thing to have a good design for a product and entirely another to ensure the product is produced according to that design. I often go into commercial kitchens and find a pristine set of recipes that no one seems to use. Meanwhile the kitchen staff ‘wing’ it by the seat of their pants on a daily basis and the chef fends off the calls for reduction to food costs with dazzling displays of smoke and mirrors. Good design and strict production control are the first steps to quality and efficiency.
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Next, we should consider your purchase and receipt of raw materials. Are they well managed? If not you will be out of pocket before you even start. Are you getting what you pay for? Are you paying the right price for it? Is the quality excessive for the end use? Is there a stock ordering system? Have the staff who receive goods been trained to do it properly? Finding out the answers to questions like this could lead you to a rich raft of opportunity. Moving on, let’s have a look at production efficiency. Engineers who are engaged in the quest for production efficiency draw elaborate flow charts that follow items right through the production process. Every time the item gets handled or moved there is an opportunity for gain or loss that the engineer considers in the quest to keep the costs down. Just imagine if we produced a flow chart plotting the travels of the ingredients in a popular menu item in the average commercial kitchen. Would there be clean straight lines from the delivery bay, through the storage areas, the kitchen and out to the front of house? Not likely, I’ve done the exercise. It ended-up looking like a plate of spaghetti. Unnecessary movement, doublehandling, doubling back were rife. Every time a person moves from point A to point B, you are paying for the time but not getting anything of economic benefit in return. The issue here is ergonomic efficiency. Architects, designers and chefs seem to very rarely consider where they put storage areas, coolrooms and equipment from the point of reducing human movement. Looking at this issue from another perspective, you might be able to run your kitchen with less staff if you give some serious thought to where everything is located. There is also a good argument here to suggest that all kitchen equipment should be modular and movable and capable of being rearranged to reflect changes in menu mix or design. You may not be able to do anything about the general layout of your kitchen without considerable expense, but the next time you do kitchen renovations this issue should be at the forefront of your thinking. In establishing a new kitchen you should weigh up carefully the up-front construction costs of the various kitchen configurations possible against the ongoing labour costs in running that kitchen. Staff productivity is the next issue on the list. Here I could probably write a thesis, but we haven’t got the space. Is there a well considered recruitment system for kitchen staff ? Is there a system of induction/orientation and skills training for kitchen staff ? Do the supervisory staff have appropriate communication and leadership skills? Are there standard times established for all recurring tasks? To focus your thinking consider the fact that if you have six staff and you increase their productivity 20% (which is usually easily achieved), you can now get the same work done with five staff — a 16% saving in labour cost. Lastly, I look at the management of kitchen overheads. Is there consideration of energy management, proper control of cleaning chemicals, a proper repairs and maintenance schedule covering all kitchen equipment, etc? Broadly, is the Chef accepting the responsibility for the cost of running the kitchen environment as well as the food production? I was taught as a manager to audit kitchen operations at least once per month, as an ongoing duty. Look at the amount of money flowing through you kitchen. It’s way too much to leave to chance. The efficiency of your kitchen is such a key element in running your business profitably, it should be a management priority to make sure it is happening. If your Chef is not tackling these issues in a logical and orderly manner you probably have a cook, not a Chef, in charge of your kitchen. Tony Eldred is the Managing Director of hospitality management consultants Eldred Hospitality Pty. Ltd. For more information visit www.eldtrain.com.au or email Tony directly at teldred@eldtrain.com.au!
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SALES & MARKETING
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SALES & MARKETING
the 11 P’s in a Remarkable brand by Rick Hendrie
The world of branding seems mysterious. What makes one brand succeed and another, of apparent equal quality, fail? One thing is for certain. Brands almost never sell what they purport and the best, most successful brands have zeroed in on the nonlogical centers of the brain and taken up permanent residence by appealing to the consumer’s feelings and fantasies. So what’s a brand to do? Start with the recognition that service and product quality are mere entry points, not the end all of a great brand. A great brand involves much more in the Experience Era. Here are the eleven ‘P’s that provide the titanic pressures to transform product or service ‘coal’ into a branded diamond.
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SALES & MARKETING
1. The Principles
5. The People
Determine the guiding values that inform and shape every decision.
Understand your staff of actors and your audience of guests make up the essential elements of any brand.
•
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Cast your show with talent that reflects your guiding principles. Skills can be taught, values cannot.
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Uncover your guest’s real purpose for choosing you over another brand - Guest research is discussed. Do you know how your target(s) ‘feels’, what their hopes are versus their expectations during the visit
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Communicate you play to the staff, including what ‘roles’ each member of the team plays in serving your guest’s real purpose.
Fashion the walk you will walk through out the entire business – in every encounter, in all processes, with each element of the business.
2. The Play Create the step by step narrative of the ideal guest experience during their visit is envisioned. •
Recognize the real reason your customers are buying your brand. The best brands do not sell what is tangible, but sell to what the guests feel and need.
. 6. The Production Elements
3. The Promise
•
Go deep. Determine the underlying motivations that get you out of bed in the morning. The most successful brands are driven by individuals with personal stories that fuel company values. Profit is rarely the prime reason. What is your story?
Design your brand to have distinctive WOWs whether within the atmosphere, elements of hospitality, amenities or presentation that truly separate you.
•
Remember that WOWs can be tangible or merely felt by the guest. This is where the power of your story shows up most powerfully.
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Determine the promises inherent in the brand.
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Decide the benefits will the consumer enjoy. What experience are they promised when they interact with you, your company and your brand?
Establish the commitments that form the bedrock of your business and brand. •
4. The Place Design the space. This involves both a physical plant and the imaginary experience that is inherent in any communication off premise. In a retail setting, this component is critical, but service businesses, wholesalers or others whooperate without a physical store still provide a ‘place. A consumer never relates to a business as a disembodied entity. There will always be a place, a setting in the customer’s mind, however abstract that might seem. A brand must understand the imagined ‘place’ is as real as the physical store and apply the same rigor to its upkeep. •
•
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Create distinctive WOWs.
Understand that the play is linear; any branded transaction will include steps that take the guest from start to finish. Designing those steps as tangible benchmarks with experiential details makes the brand remarkable. Design each ‘Zone’ or benchmark to operate at its optimum in both it’s functional and branded role to support the Play and Promise
HOSPITALITY MALDIVES DECEMBER 2005
7. The Props Be intentional with the equipment and elements your actors use to both enact business effectively and support the brand experience. •
Assess whether your key tangible equipment furthers the ‘story’ and purpose or not.
•
Determine the true meaning behind of each prop. Make sure every choice, be it one style of F, F & E, piece of equipment or other physical element, is intentional
. 8. The Price Decide what you’re worth based on how your guest values the experience, not just the product or service. Charge admission. •
Discuss pricing strategy based on the value of the experience you offer. You can charge more.
•
Prepare a clear comparative chart of pricing of properties customers deem as competitors: places they would have considered if they hadn’t chosen your brand.
11. The Performance Reviews & Prizes
9. The Promotion Craft the communication of the brand story in all its forms. •
Perform a brand audit to ensure that all tangible communication is graphically consistent and in support of the promise
Commit to being a reward based brand. •
Evaluate performance and reward ‘the right behaviors’ a shift by shift, even minute by minute.
•
Consider the relationship based options first to fully leverage those who contact and/or come to you. Focus on loyalty.
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Take every opportunity to recognize, reiterate and reward those that support your key value and the story.
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Utilize every means at your disposal to take ‘the experience’ out into the community to whom you are targeting
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Empower all associates to
. 10. The Press Seek buzz, scripted or not •
Evaluate what avenues are available that most fit your story/brand. It will likely be a combination of PR and conventional marketing.
- Engage the guest on a personal basis every time - Be prepared to do what it takes to serve the guest’s real purpose, not just the self evident ones of basic quality service and product. There are some brands which need more of one ‘P’ than another, but the best brands succeed by utilizing each ‘P’. They leverage every shred of energy and oomph available to imbue a brand with the kind of magic which elevates the consumer experience, creates raving fans and produces untold riches.
Rick Hendrie is President & Chief Experience Officer of Remarkable Branding, Inc. a Cambridge MA based consultancy which helps clients create memorable brand experiences. For a complimentary newsletter go to www.remarkablebranding.com
ENVIRONMENT
Water System
Energy Saving Tips T
he water distribution system in a building is usually ignored as a potential energy conservation resource. Itis a deceptively simple system, though, with many practical ways to optimize. These techniques can be divided into two general categories: reducing the use of water and reducing the heat lost from hot water piping.
Inspect for leaks
Whenever the water temperature at the point of use is too hot, copious quantities of cold water are needed to cool it to a satisfactory temperature. A slight reduction in hot water temperature will ensure it is delivered at the best temperature. Lowering the tank thermostat setting will also reduce the cost of keeping the water heated.
A simple way to reduce water usage is to be alert for leaks in pipes, fittings, pumps and gauges in mechanical rooms and at headers throughout the building. Faucets and other restroom fittings are also important locations to inspect for fluid loss. Swift repair of these water leaks will prevent collateral damage to wood surfaces and furnishings, ceiling tiles and electrical equipment. The savings will occur in the water bill and in a lower sewage disposal fee as well.
A variation on this theme, called hot water reset, is practiced by large institutional users. A remote outside thermometer automatically increases the hot water supply temperature when the weather is warm. This can also be done by manually changing the setting at the beginning of the cooling season, then increasing it when the heating season begins.
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More efficient operation of cleaning equipment
Leaks that occur in closed systems can be even more expensive. Water circulating in the chilled water loop, the condenser water loop and the steam loop is usually chemically treated for corrosion and high hardness. Water lost from these systems loses valuable chemicals as well, which increases the treatment costs. In addition, the energy needed to heat or cool the circulating fluid will rise since a portion of the energy spent is lost with the leakage of hot or cold water.
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Reduce hot water storage temperature
HOSPITALITY MALDIVES DECEMBER 2005
A good portion of the hot water used at an institutional building is devoted to washing dishes in the kitchen and washing clothes in the laundry. If the equipment used for these tasks does not have settings for different size loads then it is most efficient to operate them only when full. Use of an economizer cycle, if
ENVIRONMENT
available, is another energy saver; for example, drip drying dishes naturally instead of with forced heat. Adjusting the wash and rinse with the coldest practical water temperature will also save energy without sacrificing quality.
Reduce volume of waste disposal methods Many commodes are now made with a smaller toilet flush tank to reduce the volume of water used with each cycle. The same principles have been applied in other appliances, for considerable savings. Such large users of water as clothes washers and dish washers benefit from water conserving practices, especially if the quantity of cleansers used are reduced so that less water is used in the rinse cycle.
Consider increasing pipe insulation thickness .
Many older buildings were built at a time when energy was inexpensive. The hot water piping may not have been insulated at all, or it could be wrapped with a minimal thickness. A high quality product is available that is more efficient and durable. Pipe routed through unconditioned spaces such as the pipe basement or attic should not be without insulation.
fact file Nearly 97% of the world's water is saltwater or otherwise undrinkable. Another 2% is held in ice caps and glaciers. That leaves just one percent for all of humanity's needs agricultural, residential, manufacturing, and community needs. (United States Geological Survey)
Inspect and repair damaged insulation systems Sagging or missing sections of insulation should be promptly attended, as they are not only an energy loser but may also indicate a leaking pipe in need of repair. If the insulation is worn because it covers a pipeline in a heavy use area the insulation should be replaced, then covered with a sheet metal sleeve to prevent future damage.
Water regulates the Earth's temperature. It also regulates the temperature of the human body, carries nutrients and oxygen to cells, cushions joints, and protects organs and tissues. The human brain is 75% water. Human blood is 83% water and bones are 25% water. (American Water Works Association)
Install time clocks on water heaters
Each day, the sun evaporates 1,000,000,000,000 (one trillion) tons of water. (United States Geological Survey)
Most business offices are open during the daylight hours, Monday through Friday. Allowing for cleaning crews after hours, the time during which hot water is needed is perhaps sixty hours a week. The typical hot water heater is on all the time, 168 hours each week. A timer will greatly reduce this wasted energy. It can be set to turn on an hour of so before the beginning of the business day and still provide the same consistent service as though it were on constantly. Also, with extra down time, the heater will have a much longer useful life.
Insulate hot water heater(s) and storage tank(s) Many utilities will provide water heater "blankets" at no cost. Others offer rebates to businesses and individuals who purchase high efficiency hot water heaters that have adequate insulation built into the unit. If the heater is located within the conditioned space, heat emanating from the unit will add to the load on the airconditioning equipment. If it is located outside - and is poorly insulated - much heat will be lost in the winter to the environs. In either case it is important to maximize insulation.
Install flow restrictors at hot water faucets and shower heads This is another effective way to reduce water usage, while sacrificing little to convenience or necessity. To compliment such measures it is helpful to promulgate a general philosophy of water conservation, especially in the kitchen. People tend to think of water as an inexhaustible resource, not realizing the energy is saved by not wasting hot water.
At least 1 billion people must walk three hours or more to obtain drinking water. (National Geographic Society) The 250 million U.S. residents living today have access to about the same amount of water as U.S. residents did 200 years ago, when the population was four million. (National Drinking Water Alliance) If present consumption patterns continue, two out of every three persons on Earth will live in water-stressed conditions by the year 2025. (United Nations Environment Program)
. . Consider instantaneous heaters at remote locations Several manufacturers offer small point of use instantaneous water heaters. If there are only a few locations in a building that require hotter water than the rest of the facility, these devices can help save energy - if the volume is low - by allowing the main hot water temperature to be reduced. This will reduce the thermal losses from the storage tank as well as from the loop piping. .
Install a separate water heater for the kitchen or laundry A sophisticated hot water system, in a hospital for example, will be designed to supply 180 degree F water to the kitchen and laundry and 120 degree F water everywhere else. Many buildings will simply supply the hotter water everywhere, at great waste - and sometimes great danger, from the scalding hot water. Hakan Falk is the founder of www.energysavingnow.com, an initiative dedicated to energy conversation and a cleaner environment!
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TRAINING
Measuring Training in the Hospitality Industry You definitely think that training your staff is an important issue? You keep a strong focus on orientation and new employee induction? Great, so that’s done and you might sit back and relax. Not quite. One of the most essential steps in the training process is only about to come: to measure the effectiveness your training actually has!
Y
ou are a conscientious owner or manager; You take employee training seriously and have trained your employees well. You have trained your new hires in the tasks they need to know to do their assigned jobs; you have trained or retrained your experienced employees so they can do the job the way you want it done. You can now sit back, make up the work schedule, deal with a few occasional problems, do performance reviews and other paperwork, and reap the rewards. Right? Not quite. You are now ready to begin an essential step in the training process: measuring the effectiveness of your training. Accurate and regular measurement will help you accomplish several things: - Identify weaknesses in your training program - Identify employees who need more or different training - Identify employees who should be recognized for superior performance - Identify employees who must be reassigned or terminated Before you can deal with any of these points, you must first identify them. Regular measurement is a proven way to do this. How do you measure your training? Should it be a formal
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or informal system? Should your employees be told their performance is being measured? These are just a few of the questions you should have at this time.
. While the specific answers may vary a bit depending on your property and organization, some basics remain constant. Any effective measurement must meet certain criteria. It must be consistent, focused, and objective.
. 1. Consistency requires that measurement follow certain guidelines. Conditions and parameters must be constant for each measurement. This includes the qualifications and characteristics of the person or persons doing the measurement, and the actual conditions under which they make the measurement. Any change in the standard being measured requires a corresponding change in the measurement tool.
. 2. An effective measurement system must focus on the specific standards to which employees have been trained. Employees must be trained to perform tasks exactly to the stated standard, and all measurement must evaluate the standard exactly as it was trained and exactly as it is performed.
TRAINING
3. Objectivity requires that all standards meet the following criteria: A. They must be clear B. They must be observable C. They must be measurable D. They must be positive
The survey shows that 50% or more of the more than 9000 respondents say they use these amenities regularly. This particular survey, which included hotels ranging from budget to luxury level, also showed that fewer than 1/3 of respondents say they regularly use in-room minibars, fax machines, and on-site business services.
Please consider this example:
What do you really want to know from your guests? Do you really think your guests have the time, or will take the time to complete a multi-page, 15-question comment card?
STANDARD: "Telephone is answered by 3rd ring; the answerer greets the caller, identifies location, states his or her name, and offers help". EXAMPLE: "GOOD MORNING, HOUSEKEEPING DEPARTMENT, THIS IS JANE. HOW MAY I HELP YOU?" This standard meets the stated criteria, and is easily measured by the observer. The answerer either meets the standard or does not. There is no ambiguity, no need for subjective speculation. A recommended sequence for the establishment of a measurement system is: - Clearly define job tasks and standards - Ensure that your employees know exactly what is expected of them - Determine who will measure job performance - Conduct regular measurement Once you have established and implemented your measurement system, you must record the results so you can use them to determine the effectiveness of your training. Standards must be reviewed regularly to ensure they accurately reflect and support your property's mission and goals. Do not hesitate to make changes as needed.
While broad range, industry-wide statistics are always interesting, I would suggest you look at your guests? usage of your facilities and amenities to see what they really use. I a l s o suggest you pay particular attention to your comment cards to see what your guests are telling you about the amenities and services you offer, or do not offer. Please remember the old adage in this business: DON'T WORRY! IF YOU DON'T TAKE CARE OF YOUR GUESTS, SOMEONE ELSE WILL.
Is Your Guest Comment Card too Complicated? .
You should consider your measurement system an integral part of your training program. Besides the other benefits, regular and objective measurement of your training will help enforce accountability. No training program can achieve long term success unless managers, supervisors, and employees are held accountable for the results.
What do you really want to know from your guests? Do you really want their opinion or evaluation on every single detail of their stay? Do you really think your guests have the time, or will take the time to complete a multi-page, 15-question comment card? Don't you really want to know:
There must be a consequence for failure to perform tasks to the required consequence for failure to perform tasks to the required standard. Failures cannot be identified and documented without regular and accurate measurement of job performance; once identified, the failures can be corrected. The most positive result of measuring job performance is that it allows you to recognize and reward good employees.
Most Popular Amenities .
According to a recent survey by an industry trade publication, some of the more popular guest amenities are: - On-site bar and/or restaurant - Complimentary breakfast - Advance check-in and check-out - Room service - Transportation to and from the airport - In-room coffee
1. Were there any problems with your stay? 2. Will you stay here again? 3. Will you recommend us to your friends and business associates? I would suggest you look at your current comment card to see if you are asking your guest too many questions, and asking them to take too much time responding? Perhaps a shorter and more focused comment card might generate more usable information. When you want more detailed responses and want to solicit more specifics from your guests, you might consider phone and direct mail surveys or focus groups. Harry Nobles is a world-renowned hospitality consultant, former head of the AAA Hotel Ratings Program and owner of “Harry Nobles Hospitality Consulting�. Cheryl Griggs is a world-renowned interior designer with world class 5 star luxury hotels experience. For more information visit w w w. o p t i m u m r a t i n g. c o m o r e m a i l H a r r y & C h e r y l a t info@optimumrating.com!
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FOOD & BEVERAGE
Next, find the heat exchanger in the refrigeration unit itself. The heat exchanger is the panel which looks like the radiator in a car and is located with the electric motor at the top or bottom of the unit. Heat exchangers have a fan behind them drawing air for cooling purposes. After a surprisingly short time they can become clogged with dust (especially if the workings are close to the floor), and cease to function properly. Again, this is costly. It is a simple matter to regularly clean the heat exchanger with a brush. While on the subject of refrigeration, does your Chef leave the coolroom door open for inappropriate lengths of time; perhaps in order to cool the kitchen on a hot day? There are much cheaper ways to cool a kitchen. Now examine your gas stoves. Turn on all the gas jets and look at the colour of the flames. Do you see any yellow or orange? If so, the jet is not adjusted properly and will not supply the optimum amount of heat for a given amount of gas. This is quite apart from all the extra labour required to clean the black carbon deposits off pots and pans etc. Gas jets should burn with a clean, blue flame; if they don't, adjust them with the air/gas mixture screw at their base.
On the subject of
Kitchen Maintenance
H
ow often do you stroll through a commercial kitchen? I visit them regularly and often see opportunities for substantial savings in operating costs which go unnoticed by both the occupants and the management.
There are two kinds of costs in any business. First, there are tangible costs for which a specific invoice is received or which have a definite visible relationship to some management decision, e.g. wages or the butcher’s account. Second, there are abstract or intangible costs, which are still incurred, but are not as easily isolated and controlled. An example of abstract costs are your energy bills; they are made up of the combined energy usages of numerous pieces of equipment and even though you are well aware of the total amount, you may be totally unaware that some equipment is using more than its fair share of power. I chose to use energy as an example because it is usually a substantial cost in any food business and it is one with a good potential for saving. Imagine if you could decrease usage by 15%; what would you save in one year? Start by examining your refrigeration equipment. Look at the door seals — are they intact and doing their job, or are they split or broken and allowing cool air to escape? Broken seals cause the electric motor to cut in more often and work harder. If they are really unserviceable the increase in running cost can be as much as 75%.
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Also, are your gas jets left burning outside peak periods because somebody forgot to turn them down or somebody wants to heat the kitchen? Again there are cheaper ways. Look at your oven doors next. Oven door seals function the same way as fridge door seals and should also be kept in the same good order. Now check your exhaust fans. How often do you clean the filters? Perhaps you let them get really clogged before you clean them. This causes the exhaust fan to suck a partial vacuum and also increases costs. Filters should be put through the dishwasher about twice per week. Wander over to your deep fryer(s). Are all internal carbon deposits cleaned from the elements and interior surfaces regularly? Carbon is an insulating material which causes the unit to require more gas or electricity to function. It can be removed with chemicals specially designed for the purpose. Consult your chemical supplier. Have you ever checked the actual operating temperature your fryers by using a calibrating thermometer? The temperature on the dial may bear no resemblance to the actual temperature. If the fryer is too hot it will use more energy, break down oil and discolour food. These are just a few suggestions to set you thinking. What I am really trying to get across is that a regular kitchen maintenance schedule incorporating thorough checks on vital aspects of your equipment will repay you handsomely. Remember that a clean kitchen is not necessarily a well run kitchen.
Tony Eldred is the Managing Director of hospitality management consultants Eldred Hospitality Pty. Ltd. For more information visit www.eldtrain.com.au or email Tony directly at teldred@eldtrain.com.au!
LILY INTERNATIONAL
PTE.LTD
SLAES & MARKETING
Selling without a Script “
G
et into selling and make your fortune" the headline shouted at me from the classified page. It went on to explain how anyone could become rich by learning how to sell.
As a gullible young man just out of the Air Force and looking for a job, I was hooked on the idea of a sales career despite suffering from a general lack of confidence. On top of that my near panic at the thought that now I had to survive in the big outside world on my own. No morning bugle call to kindly let me know that breakfast was being served. No more shouting in my ear about the condition of the nice suit of clothes they give you to wear. No more marching in parades to a destination unknown, you need only follow the leader and wait until you hear the order to halt. Worst of all, no more free meals and a bed, the reason I joined up in the first place. I had become institutionalized. From that point forward I would need to think for myself for the first time in years. Solely on the merits of my Air Force discharge papers, I landed a job as a trainee salesman with a well-known office machine manufacturer. They kindly sent me to sales training school for a whole month after which you are supposed to be a whiz at selling. Not so for me, because after a couple of months I had managed to sell . . . nothing. Hugely embarrassed and demoralized, I resigned. However, I continued to hold to the belief that "selling can make your fortune", perhaps because as a kid I had been quite a successful street urchin. My ideas about selling as a career were reinforced when by chance I read a news item about a janitor who became a commission salesman. Two years later he bought the apartment block where he had previously been the janitor. I must try again to become a salesman, and I did without much success. Most of the direct selling outfits simply gave me a pre-typed script to learn. I tried the scripts, but several of my prospects simply asked me how long had I been doing the job. One asked me why I was speaking so unnaturally, I wasn't aware of it. Perhaps I speak with a different tone when reading out loud from a script. Perhaps I could learn to sell by trying retail in-store sales, I pondered. So onto the retail circuit. The Company boss had a store for each day of the year 365 stores. He sent me as a trainee to a store where I was asked to push the sales of some fridges that had no motors. I was astonished. How can a fridge not have a motor? I asked the store manager for a brochure that might help my understanding of a fridge with no motor, so he dug around under the counter and thrust a buch of grubby papers into my hand. "You're supposed to sell them, not read about them" he complained. Anyway I did read about these fridges, and discovered that not only did they have no motors but the energy consumption
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was less than an ordinary light bulb. I found it all quite extraordinary. and simply voiced my amazement about them to everyone who entered the store. Not as an intention to make a sale, but simply because I was actually very impressed with the technology. However, a strange thing happened: People started buying fridges. Each day more people came to me to ask about them and more sales resulted. Weekly deliveries of fridges to this single store out of 365 stores alerted the Head Office due to the unusual delivery rate. Incredibly, the company extended the premises to accommodate more fridges. I have often wondered how they filled the space when I moved on to pastures new. So there I had learned the two most important ingredients for selling which if mastered will enable anyone to be proficient in sales. Just these two for starters: Enthusiasm and Product Knowledge. The third ingredient will be borne of the above two which is "confidence". Armed with enthusiasm for a product and thorough Product Knowledge, you will surely brim with confidence. Most of your prospects will not see you as just another Sales Person but as an expert they can trust. Why will they trust you? Because as you should have discovered yourself in life that it is always patently obvious when someone knows what they are talking about, You know instinctively when a person is telling you the truth. You also learn to know instinctively when someone is talking nonsense. Now here is a truth: People will only buy from those they trust. The emphasis is on the ONLY. Since then I have sold just about everything under the sun, including double glazing, windows, home improvements and several years in Life Insurance. I learned some truly fascinating secrets on selling and how to sell effortlessly. Truly "Selling" is easy, when you know how. Look out for my article entitled "Selling effortlessly by Numbers" you could be amazed. Naturally, I moved up in my sales career and bought my own stores. Selling the very product I found impossible to sell just a few years earlier, Office Machines. I can never forget a major sale I made a few years ago to the Managing Director of a large corporation. He bought a very expensive product and gave me his company cheque there and then without question. However, just as he was leaving he mentioned that one of my competitors WGS was selling the exact same product at ten percent less. Being a bit puzzled, I asked him why he did not buy it from WGS. "Because I preferred to buy from you" He replied. There you have it, as you must surely know deep down, even from your own experiences: People will only buy from those they trust. Article by Harry S Richards. Founder of Beauforts PC Trading. Learn from his experience: Go to: http://www.beauforts.biz Harry also runs a unique Trade MART at http://www.themartuk.com
Becoming a Leader
A
leader may not always be a manager, and one day you may see an opportunity to lead a project or team within your group, but when do decide the time is right and how do you go about becoming the leader?
Steps to Leading Look at the context of the situation and decide if your leadership is required and if you can feasibly lead the team. Perhaps another group member would be better or, even worse, the group would not accept your influence. If this is the case your attempt to lead will be a failure. 1.
Identify team members and resources willing to support your leadership. Clearly, change may be resisted by some people or organisations, but if you can find enough support this resistance can be overcome. Note that the support of your team may not be enough if you do not have the support of authority (the boss for example) or the physical/financial resources to accomplish your goals.
2.
A crucial step is to empathise with others and assess their understanding of the situation. This will help you understand how to influence these people. Many ways of doing this are available: memos, phone calls and informal chats are a few examples.
3.
Now you should open a discussion which the members. Clearly, without open discussion some people may feel neglected or excluded. By getting everyone's views it is more likely that you will be able to alter them and get what you want. Now you must convince the others that your view is the one most likely to achieve a favourable outcome for everyone. This may be easy if everyone shares the same goals, or it may be difficult. In the end some form of 'payment' may be required, such as a promise of a favour, to convince certain members. This is easy if you are in a position of power, if not, make sure the cost to yourself is not too high.
4.
Having convinced the team of your leadership, encourage team communication to build a team identity. You should also try to motivate the team appropriately.
5.
Plan and organise the team by setting realistic goals. However do not give too much or too little guidance, experienced workers may resent you treating them like new-recruits, and this can undermine your leadership.
6.
When goals are achieved recognise and reward the team. Do not expect the team to exceed them - this will undermine your leadership and the team will lose trust in you. Of course you may decide that the goals are unachievable or insufficient, but any re-definition of these goals should be done carefully and with team cooperation.
Ready to lead?
FINANCE & ACCOUNTING
Revenue Management for Travel Agents by Luis M. Sanchez & Bhanu Chopra
R
evenue management is usually associated with the suppliers of travel products – such as Airlines, Hoteliers, and car rental companies and cruise lines. However in the broader perspective, it applies to any entity that has a perishable commodity and would like to maximize revenue given its perishable inventory.
However something that is not often talked about is Revenue Management for Travel Agents, Travel Consolidators and third party online travel agents. Although practiced by all travel agents in some sense, there are very few travel agents that have either set revenue management processes or sophisticated revenue management applications to make price recommendations for their own travel inventory. Though working as a third-party, you have limited control on inventory; the allocated or contracted inventory is nevertheless perishable – an allocated room not sold is certainly lost - and demands for Revenue management principles to maximize profits. Anything that has a variable demand and fixed supply can use Revenue Management principles.
Is Revenue Management for Travel Agents? Revenue management is critical for travel agents, online intermediaries as the suppliers have increasingly taken control of inventory and engage in direct distribution through their own websites. With the increasing pressures on travel agents and online intermediaries, it is also time to start giving some attention to Revenue Management. "In an industry like online travel with such wild competition and volatile demand, the importance of Revenue Management is infinite. By developing, interpreting, and implementing complex pricing and inventory management actions we manage to compete effectively and maximize potential revenues. “Travel corporations are increasingly being forced to compete on price. Price intelligence reports is a tool which allows us to stay on top of our competition, ensure that our prices are being optimized on a daily basis to reflect market changes and variable demand, and accurately estimate hotel traffic for future dates." Nick Tsimbidaros, Business Development Manager, OctopusTravel USA
Designing a capable revenue management tool is a daunting task. Here are some thoughts: Price: Typically the business model for travel agents is on Net Rates – Wholesalers and TTOO - or commissionable rates – mainly Retailers. In the first case, they however have the flexibility to decide what the final price the end customer is going to pay. A good Revenue management system for Hoteliers takes into account the historical rates and occupancy levels for the hotel’s competitor set and then recommend rates. Nowadays, software applications enable hoteliers to react on real-time, by pulling all data together and distributing their inventory into the different Rate Groups accordingly. For Travel agents, it is essential to benchmark against your competitor set in terms of price and market share. In order to screen/track/trace competitor pricing, this would involve either manually checking competitor web sites or a more systematic approach would be to use a technology partner that can help in using their search engine technologies in tracking the price and availability of competitor firms. One very likely outcome of implementing revenue management principles is establishing dynamic real time pricing of travel inventory for the online intermediaries. Availability: A travel aggregator that has more depth and breadth of inventory can at times of high demand, afford to charge a higher price as the travel inventory. Pricing will be set according to the market trend, prices will increase as capacity decreases and vice versa, in such a dynamic way that Revenue obtained will be maximum. This requires that the travel agent keep a constant tap on competitor’s availability and pricing. Elasticity of demand: The key is being able to determine customers' elasticity of demand - how badly they need the product or service and how much they're willing to pay. This requires an investment into web analytics software to determine the customer preferences, their navigational behavior, the frequency and interval of visits to your website. A thorough study of visitor behavior should be followed by an implementation of a personalization strategy (CRM strategy) that is capable of delivering an airfare or hotel rate based on the customer needs and preferences. Studying demand elasticity is critical for hotels and intermediaries as it is not yet become a commodity as Airlines have. A real-time application to apply discount policies and promotion programs based on visitor behavior can be judicious. Demand forecasting: A true RMS product would focus on a forward-looking report. And as such, the balance between historically based assessments and a current analysis of marketplace provides the basis for creating an accurate forecast. A system must be dynamic, accounting for current alterations in the marketplace, and increasingly accounting for this information as the actual booking date draws near.
In summary .
How does one begin to think of Revenue Management in this context? The goal of the hotelier is to maximize RevPar, and airlines to maximize onboard revenue. For a travel agent it is to maximize revenue based on product available to it. Adding to this, a travel agent will hold a position of strength in next-round negotiations with its suppliers whenever he achieves a Revenue Management strategy. So how should you price your product?
A Revenue Management system should only be followed after Revenue Management processes and principles are established. Revenue Management is not the magical answer to travel agents woes but it is worth a deeper look to maximize revenue given your current resources. The first step is not a big investment into a sophisticated RMS but establishing revenue management principles across your sales and product teams.
Luis Miguel Sanchez works as Assistant Head of Product at Hotelbeds. For more information visit www.hotelbeds.com or email lm.sanchez@hotelbeds.com. Bhanu Chopra is the CEO of RateGain. RateGain provides Internet based competitive pricing intelligence to the global travel industry. The mission is to deliver a comprehensive view of Internet based travel airfare and hotel-rates information to travel portals, airlines, hotel chains, travel inventory consolidators and travel industry related market research firms. The availability of this market intelligence enables our customers to reach their price-decisions faster and remain ahead of the market by deciding appropriate sales strategies. This in turn helps our customers increase their sales and enhance efficiency of Internet as the preferred and low-cost medium of transaction. For more information visit www.rategain.com or email bchopra@rategain.com.
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RANKING
The Twenty biggest
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1. Ambassador City Jomtien, Thailand
6. Excalibur, Las Vegas, USA
The largest hotel in the world tops out at 5,100 guest rooms and suites overlooking 40 acres of beach, Jomtien Bay or the mountains. This massive resort complex, just ten minutes from Pattaya, also boasts the largest swimming pool in Asia, a sports and tennis center, a spa, business services and convention center.
A family-oriented fantasy hotel at the base of the Strip, with 4,008 affordable guest rooms and suites.
2. MGM Grand Hotel Casino, Las Vegas, USA
7. Bellagio, Las Vegas, USA
You can't help but experience a jaw- dropping moment when you gaze on this, the second-largest hotel in the world (and the largest in North America), for the first time. Four 30- story towers, massive video screens and an enourmous gold lion are outside, while inside are live lions, nine restaurants, two food courts and 5,005 guest rooms.
For a romantic getaway, spring for a fountain-view room, tune in the piped-in music on television, and watch the show from your window. Let everyone else jockey for a spot in the street. The most recent tower, opened in December 2004, brings the total to 3,993 guest rooms and suites.
3. Luxor Hotel Casino, Las Vegas, USA
8. Circus Circus, Las Vegas, USA
The unmistakable pyramid and the adjoining tower house 4,408 guest rooms and suites, making this the second-largest hotel in Las Vegas.
Loud but good for a cheap getaway, and with 3,774 rooms, you'll be sure to get in even at the last minute.
4. Mandalay Bay (incl. THEhotel), Las Vegas, USA
9. Flamingo Las Vegas, Las Vegas. USA
With the addition of 1,118 rooms in the luxe new THEhotel, Mandalay Bay jumps up to #4 on the list with 4,341 total rooms.
A great location at the base of the Strip, low rates and 3,565 guest rooms and suites.
5. The Venetian, Las Vegas, USA
10. Hilton Hawaiian Village, Honolulu, USA
Renaissance Italy comes colorfully to life with a gondola, strolling musicians, and a replica of St. Mark's Square. 4,049 guest suites that are among the largest standard rooms in the world, at an average of 700 square feet.
This 22-acre beachfront resort in Wakiki has 20 restaurants, and 3,386 guest rooms and suites in six towers.
HOSPITALITY MALDIVES DECEMBER 2005
RANKING
hotels in the world 11. Caesar's Palace Hotel Casino, Las Vegas, USA
16. Treasure Island, Las Vegas, USA
Caesar's made the list this year with the opening of the new spa tower. An additional 949 rooms brings the total to 3,349 guest rooms and suites.
2,885 guest rooms and a pirate theme for this whimsical hotel aimed at fun-loving adults.
12. Mirage Hotel Casino, Las Vegas, USA
17. Gaylord Opryland Resort, Nashville, USA
You may feel as if the Siegfried and Roy show lives on, surrounded as you are by white tigers, tropical rain forests and even dolphins. 3,044 guest rooms and suites.
This family and business resort has a glass dome over an indoor river, over a dozen restaurants and lounges including a Ben & Jerry's, and 600,00 square feet of convention space. 2,881 guest rooms and suites.
13. Monte Carlo Hotel Casino, Las Vegas, USA
18. Disney's Pop Century Resort, Florida, USA
A more affordable version of the Bellagio, with kid-friendly features and 3,002 guest rooms.
Disney's newest value resort plays around with pop culture icons from every decade of the 20th century. At 2,880 rooms, it is the largest resort at Disney World.
14. Las Vegas Hilton, Las Vegas, USA
19. Bally's Casino Resort, Las Vegas, USA
A AAA four-diamond resort with 2,956 guest rooms, this resort caters to business travelers with 200,000 square feet of meeting space and wireless high-speed Internet access.
You may have spotted this hotel in the movie "Honeymoon in Vegas." But you might not realize this is one of the largest hotels in the world, with 2,814 guest rooms and 300,000 square feet of meeting space.
15. Paris Las Vegas Hotel & Casino, Las Vegas, USA
20. Wynn Las Vegas, Las Vegas, USA
A taste of France on the Las Vegas Strip, one of my favorite buffets in the world, and 2,916 guest rooms.
Steve Wynn, the hotel mogul originally behind the Bellagio (among others), opens his new bronze tower on the old site of the Desert Inn. The 50-story resort, which will feature its own dancing fountains and a golf course behind the resort, will top out at 2,716.
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FOOD & BEVERAGE
CAFFEINE
Everything you need to know about it!
W
hether waking up to the aroma of freshly brewed coffee, enjoying lunch with a refreshingly cold soft drink or relaxing in the evening with a cup of tea, these daily pleasures often have a common ingredient—caffeine.
People have enjoyed foods and beverages containing caffeine for thousands of years. It is one of the most well-studied ingredients in the food supply. Even so, controversy and misperceptions about this food component continue.
Historical Notes
The American Medical Association (AMA) has a similar position on caffeine's safety, stating that "Moderate tea or coffee drinkers probably need have no concern for their health relative to their caffeine consumption provided other lifestyle habits (diet, alcohol consumption) are moderate, as well."
. Most experts agree that moderation and common sense are the keys for consuming caffeine-containing foods and beverages. Moderate caffeine consumption is considered to be about 300 mg. which is equal to 3 cups of coffee, but this depends on the individual and can vary from one to several beverages. Consumers with certain health problems may wish to consult with their physician or health care provider about caffeine consumption.
As long ago as 2737 B.C., Chinese Emperor Shen Nung was boiling drinking water when the leaves of a nearby bush fell into the pot, creating a wonderful smelling drink and the first pot of tea. Coffee originated in Africa around 575 A.D., where beans were used as money and consumed as food. Eleventh century Arabians were known to have coffee beverages. While exploring the New World, Spanish conquistadors were treated to a chocolate drink by Aztec Emperor Montezuma in 1519. The world's first caffeinated soft drinks were created in the 1880's.
“Moderate tea or coffee drinkers probably need have no concern for their health relative to their caffeine consumption provided other lifestyle habits (diet, alcohol consumption) are moderate, as well." (The American Medical Association)
Caffeine and Health
Sensitivity
During the past two decades, extensive research has been conducted on the health aspects of caffeine consumption.
People differ greatly in their sensitivity to caffeine; some individuals can drink several cups of coffee, tea or soft drinks within an hour and notice no effects, whereas others may feel stimulating effects after one serving. Caffeine does not accumulate in the bloodstream or body and is normally excreted within several hours following consumption.
The U.S. Food and Drug Administration (FDA) classified caffeine as Generally Recognized As Safe (GRAS) in 1958. A more recent review "found no evidence to show that the use of caffeine in
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carbonated beverages would render these products injurious to health."
HOSPITALITY MALDIVES DECEMBER 2005
FOOD & BEVERAGE Caffeine may increase alertness in tired individuals and enhance performance of certain tasks. Many people find caffeinated beverages can help them stay alert when they work or study. Individual sensitivity and frequency of consumption determine the effect of caffeine on sleep.
intake is quickly and substantially altered. Medical experts have long agreed that any discomfort caused by abruptly stopping consumption of caffeine can be avoided by progressively decreasing intake over a few days.
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Breast Disease
National Institutes of Health (NIH) research indicates there is no difference in the way children and adults handle caffeine. These studies have shown that caffeine-containing foods and beverages do not have an effect on hyperactivity or the attention span of children. Parents should use common sense in deciding how much caffeine-containing foods or beverages they give their children, as with many foods.
Pregnancy The FDA has stated that caffeine does not adversely affect reproduction in humans, although the agency continues to advise pregnant women to consume caffeine in moderation. Three major studies involving more than 15,000 women found no birth defects associated with caffeine consumption even among the heaviest coffee drinkers. Similarly, other human studies continue to support the conclusion that moderate consumption of caffeine does not predispose expectant mothers to spontaneous abortion or preterm delivery, nor the fetus to low birth weight.
A worldwide investigation of 100,000 deaths due to breast cancer found no relationship between caffeine intake and the development of this disease. Research has also shown that caffeine intake is not related to the development of fibrocystic breast disease (FBD), a condition with benign fibrous lumps in the breast, although caffeine is sometimes thought to aggravate this condition. Both the American Medical Association's Council on Scientific Affairs and the National Cancer Institute published reports stating there is not an association between caffeine intake and the incidence of FBD.
Osteoporosis Research has shown that caffeine intake is not a significant risk factor for osteoporosis, particularly in women who consume adequate calcium. A 1994 NIH advisory panel concluded that caffeine has not been found to affect calcium absorption or excretion significantly. Several studies conducted to date show no link between moderate caffeine consumption and bone density and mineral content in women who consume some calcium in their diet.
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Caffeine Quick Facts
Some studies suggest that high levels of caffeine intake may delay time to conception, but these findings are inconclusive and often inconsistent when other lifestyle variables are considered. Research from the Centers for Disease Control and Prevention, Harvard Medical School and the University of California at Berkeley show that moderate caffeine consumption does not reduce a woman's chance of becoming pregnant.
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Cancer
Cardiovascular Disease
Caffeine is a naturally occurring substance found in the leaves, seeds or fruits of more than 60 plants. Coffee and cocoa beans, kola nuts and tea leaves are used to make beverages such as coffee, tea, cola drinks, and chocolate. Caffeine is used as a flavor in a variety of beverages. Caffeine will not help "sober up" someone who has consumed too much alcohol.
. A 1986 study of 16,600 individuals published in the Journal of the National Cancer Institute found no relationship between coffee consumption and cancer risk. The most recent review by the International Agency for Research on Cancer also concluded that data do not support a link between caffeine consumption and cancer in humans. According to the American Cancer Society, "Available information does not suggest a recommendation against the moderate use of coffee. There is no indication that caffeine, a natural component of both coffee and tea, is a risk factor in human cancer."
Addiction / Dependence The word "addiction" is an old word meaning simply to be devoted or habituated to a practice. People who say they are "addicted" to caffeine tend to use the term loosely, like saying they are "addicted" to chocolate, running, working or television. According to the World Health Organization, "There is no evidence whatsoever that caffeine use has even remotely comparable physical and social consequences which are associated with serious drugs of abuse." Some sensitive individuals may experience mild, temporary effects, including headache, restlessness and irritability when their daily
A report from the National Research Council on Diet and Health stated, "evidence linking coffee consumption to the risk of coronary heart disease...is weak and inconsistent." A 1989 report from the well-respected Framingham Heart Study examined all potential links between caffeine intake and cardiovascular disease, and found no harmful effects from drinking coffee. A later Harvard University study confirmed this report, concluding that caffeine intake does not "appreciably increase the risk of coronary heart disease or stroke." Caffeine does not cause chronic hypertension or any persistent increase in blood pressure. Some individuals sensitive to caffeine may experience a short-lived rise in blood pressure, usually not lasting more than several hours. Studies show any rise in blood pressure is modest and less than that normally experienced when climbing stairs.
. However, individuals with high blood pressure should consult their physician about caffeine intake. Ific.org is the official website of the International Food Information Council. It’s the council’s mission to communicate science-based information on food safety and nutrition to health nutrition professionals, educators, journalists, government officials, and other providing information to consumers. For more information please visit ific.org!
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TRAINING
Training is not a universal panacea! I’m not saying you can’t get good effect out of small quantities of training inserted into the middle of the pyramid — you most certainly can — but not by just sending them and hoping for the best. Training is not a universal panacea!
M
y business has been booming lately, with requests for management training coming from a broad variety of hospitality businesses. Some requests are well conceived and display a good knowledge of management practice, and some are quite off the beam. I find myself telling quite a few misguided owners and managers to keep their money in their pocket (you can afford to do this when you are extremely busy) — training is not a universal panacea. I constantly get phone calls that begin with: ‘I want to send some of my managers to your training courses’. My response is with the invariable question: ‘What do you want to achieve?’ This is where it often gets vague. They respond with statements like ‘I want to strengthen their skills’, or ‘I want to motivate them’. This is not too helpful to me; I need to work to more specific objectives like: ‘I want to upgrade my customer service standards’, or ‘I want to decrease my staff turnover’. Then I can give good service. The old saying that ‘a fish goes rotten from the head down’ is very appropriate in this business. If a business or its staff are not performing as required, it is usually prudent to begin by training or retraining the owner or the manager first. Here we run into a problem. Most owners and managers are reluctant to undergo training themselves, especially in the basic supervision skills. They seem to think it’s beneath them. If we accept their subordinates for training we can end up creating a spate of key staff turnover due to what I call the ‘bail-out syndrome’. This is where you train somebody and open their mind to good management practice, and they begin to look upwards with critical despair. They have been trained to use certain procedures and their superior is unwittingly breaking all the rules. An erosion of respect for their leader is followed by a resignation. We prefer to apply management training in a logical sequence that I call the ‘onion method’, i.e. a layer at a time from the owner down to the supervisors. Each successive layer is reinforced by the previously trained layer above. Quite radical business changes are possible working this way. What we try to achieve is a ‘critical mass of thinking’, where most of the leaders within a business share a common vision and use this to influence and guide the rest of the staff to perform. If you simply send odd members of your team for training they will most likely revert to their old behaviour within a short time. There are two reasons for this: First, their old behaviour is comfortable; new behaviour forces them into the unknown and can be quite scary. Second, critical pressure from their peers will often force them to abandon new methods — many people jealously guard the status quo and see change as threatening.
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I’m not saying you can’t get good effect out of small quantities of training inserted into the middle of the pyramid — you most certainly can — but not by just sending them and hoping for the best. You must brief them before they come, telling them what you want them to achieve, and you must set them goals or targets when they return — then regularly follow-up for six months until new behaviour becomes ‘normal’. The psychologist who works with me, Celina Chua-Huggins, puts it succinctly by explaining that you have to take the person from being unconsciously unknowing (where they don’t know what they don’t know), to being unconsciously knowing (where they don’t have to think about doing it, like when you drive your car). Supervisory and management procedures take time to assimilate. They are useless if they remain spread over the pages of training course handout notes and are not assimilated into normal behaviour, ready for use at will. I’m also disappointed at the number of managers who ring me and tell me that they are sending me one of their problem children, and when the person arrives at the training course they have no idea why they are there. This suggests that the manager is submissive and is wanting me to correct a performance problem they are not willing to talk to the employee directly about. I get very frustrated about this situation and often wish I could drag the manager in for communication training. Another favourite management activity is trying to drive square pegs into round holes. This manifests itself by people being presented for training who are obviously the wrong personality for the job they are doing (like a headwaiter who hates people, a book keeper who is dyslexic or a supervisor who is extremely submissive). You can’t train these things out of people easily, certainly not in a short training course. These are recruitment and selection problems. To be fair though, I have some extremely professional clients who ring, tell me what they want and ask how to go about it — and more importantly they take my advice and use it. They know that $200 spent wisely on staff development is going to yield a better result than $200 spent on a new chair. Some of them have even swallowed their pride and come back and repeated the same, basic training course until they’ve got all the material down pat. Then they’ve sent their staff to learn. There is a direct correlation between the best business and the best leaders. Very few of the best leaders are naturals — most had to learn. Earlier in my career I had to learn how to come down off my pedestal and admit that I don’t know everything. How about you? Have you become a legend in your own mind? Tony Eldred is the Managing Director of hospitality management consultants Eldred Hospitality Pty. Ltd. For more information visit www.eldtrain.com.au or email Tony directly at teldred@eldtrain.com.au!
Exclusive distributor: Watersports Unlimited Pvt. Ltd. Contact: Mr. Andreas Ronecker, info@watersports-unlimited.com, 7778611
SALES & MARKETING
Customer Intelligence W
hy do most companies' products and services fail in the marketplace? Largely because of focusing on what the companies wanted and knew, instead of what customers themselves knew and wanted.
Digital Equipment, Data General and Wang are minicomputer industry examples of trends leaving management behind. Every industry is replete with examples of great well-funded teams somehow going wrong. Even experienced venture capitalists, including the majors, average less than 10% success on their business bets!
The Speed of Insanity Often, business leaders are too occupied with all their other functions to really listen to any but major customers. Of course, things were different in simpler quieter times when direct
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contact and response to customers was the norm for businesses. Now, the difficulty lies in the increased complexity, distance and speed of commerce. “In a start-up company, you basically throw out all assumptions every three weeks� (Scott McNealy). Business directors can only trust the buying trends if the aggregate data is based on the actual thoughts, feelings and actions of real buyers.
Putting the Puzzle Together Depending on the complexity, all decision-makers use basic information processing functions. The functions range from perception (scanning possibilities), attention (focusing on item), and evaluation (comparing qualities). Sellers as well as buyers of products or services use these circular steps. Sellers have to decide that potential buyers will evaluate products as having the best qualities when compared to those of competitors.
SALES & MARKETING
For effective sales planning, there has to be reasonable assurance that the defined population of potential buyers will progress through favorable perception, attention and evaluation to become actual buyers. The necessary progression implies that when potential buyers are informed of the products, they will be ready, willing and able buyers. Then, the fundamental question is how much prospects who are aware of a given item will value, commit and pay for it.
Seven Deadly Sins of Customer Assessment . 1. Relying on only one approach. The approaches must be suited to varied customer types and intelligence-gathering tasks. Individual, group, oral, written, Internet, phone, and sundry techniques reach different people and elicit different responses. An IT manager might not prefer phone contact, other prospects won't use or like online contacts. .
Beyond Crystal Balls Numerous investigatory techniques have been tested at universities and research centers, often in conjunction with governmental agencies as diverse as the DOD and National Institutes. Most are unfeasible or impractical for businesses A few assessment methods have been developed that have proven their effectiveness in applications for companies from start-up enterprises to Fortune 100. These refined techniques provide more ways to clarify patterns of product uses, preferences and projections.
2. Groupthink. Whether in executive committees or conventional focus groups, the persuasive person may greatly influence the information participants will disclose. The extrovert often push for group conclusions, while the shy members hold back. .
3. Hollywood Nice Guy/Girl. Most people like to be liked. And they frequently make likable statements and are Pollyanna's about new products. Superficial marketing research has been taken by wildly optimistic consumer intentions about videophones, paperless offices and all those Edsel-like predictions. .
Customer Assessment Customer assessment looks at buyer attributes such as: •Perceptions of product category, brand images and particular product. •Motivations for features, usability factors and general expectations. •Decision keys prior to and during purchases, including attention points.
Focusing Best Practices The focus changes with the intelligence-gathering task. Initial questions may ask for concept reactions; later feature testing may delve deeper into problems solved by the product design/technology. Forecasting power arises from clarifying how attributes have affected desired customers in the past along with how current features affect their behavior now. For services, winning decisions might depend on knowledge about growing sustainable relationships. Working closely with a team of Andersen Consulting professionals, E*TRADE is developing new customer insight capabilities. These personalized tools will be used to enhance the customer experience by making it personalized, fun and rewarding. The key, explained Lisa Nash, vice president of E*TRADE Insight, is keeping the focus of technology and innovation on the customer, not simply on the organization. "When E*TRADE invests in technology," said Nash, "the focus is always to empower our customers, to make them even smarter and to give them more options to act on their own behalf.” Make it easy for your company to hear the voice of customers. Customer insights often come from analyzing, categorizing and prioritizing unstructured, qualitative input. Customer intelligence and Internet technology have made it possible for international companies to have the dialogues of “1:1 enterprises”. This new-old possibility supports the successsurvival necessity: To determine the specific product/service that meets specific customer's needs at a specific cost (Don Peppers & Martha Rogers).
4. No Problem. Connoisseurs, ringers and geeks frequently get selected for trying out concepts and testing products. Those high users or “smooth operators” can give false impressions about wide desirability and about easy usability. Microsoft assessed the potential for PC cameras and found the majority of mainstream participants could not get the “tricky” features to work. .
5. Either/Or Targets. Too loose is an equal opportunity problem with too tight selection of participants. While examining the top buyers can be very informative, the next level of buyers may provide valuable insights, especially about how they might move up to the prime buyer level. Talking with former customers and competitors' customers may also be instructive. .
6. Follow-through Failures. Stopping part-way along is worse than not starting in terms of wasted energy and poor results. The real “info pop” may come at the very end. The Sherlock has to keep looking for any and all clues, following them wherever they lead to find the facts. .
7. Too-Trained Technicians. Of course, any researcher may be biased, glib or superficial. This is compounded when investigators and their assistants are rigidly bound by training that causes them to look for the familiar, known or already believed to be true. An attitude of naïve openness -- not in skills, but a willingness to embrace new styles, methods and material facts -- is extremely helpful.
"WINNER-TAKES-ALL" Scenario The company that gets ahead of competitors in the sell cycle tends to stay ahead, gaining a disproportionate share of industry revenue. The Wall Street Journal calls it the "winner-takes-all" scenario. Customer intelligence aims for quick, pertinent and actionable answers from real-world information. Business knowledge can be solidly leveraged by understanding the buying behavior of people ranging from sophisticated professionals to passionate adolescents. Ernest Lotecka, Ph.D. applies his expertise in business, engineering and behavioral science to his customer assessment and human factor analysis/design consultancy. He specializes in highly cost-effective methods that evaluate perceptions, motivations and communications for designing services. His extensive client list includes Boeing, Sega, and the U.S. Navy.
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SPA
F
or spa directors in hotels and resorts offering spa services there is the constant pressure to excel even further and so differentiate themselves in the minds of their guests; to find compelling ways to entice guests to return when there are many other venues for them to choose from. The same could be said of the butler service offered by many such hotels and resorts. Both programs add value and prestige, but is there a way to improve these service offerings? The short answer is, “Yes!” Imagine you are, as one guest noted, returning to your hotel suite looking like a scrubbed vegetable and feeling anything from exhausted to exhilarated to even nauseous. You are about to run into the one key flaw inherent in every spa experience: it ends the moment a guest leaves the spa to return to his or her suite. The way to make a guest’s experience a complete one, and offer a total immersion in the “get away from it all” relaxation and rejuvenation, is to form a joint venture between the spa and butler programs. Simply put, make the butler service an extension of the spa experience, wherein spa-trained butlers provide their usual high-end service on the hotel side, but with the added knowledge and techniques that enable the spa environment to continue in the guest’s own suite.
“Now imagine a butler who knows how guests can react to their spa experience and how to assist them with understanding and empathy. It would create quite an impact on guests.”
Spa Butlers Adding Value to Spas and Hotels Alike
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Does this mean that the butler will roll up his sleeves and stretch, massage and pluck the guest? Not at all: but put yourself in the shoes of the guest. If you have ever been pampered and prodded, sweated and doused, this should not be too difficult. When the doors of the spa swing shut behind you and you make your way to your suite, you re-enter a world that runs on different agreements. People rush around, lost in thought, and not up to speed on your own serene/mellow/invigorated world. You open the door to your suite and it is, well, flat and empty and definitely not that interested in your new state. Guests may even experience a catharsis or detoxification as a result of their spa experience. How reassuring or safe would an empty suite be, with butlers at the end of the telephone line who know nothing of your condition or how to assist. Now imagine a butler who knows how guests can react to their spa experience and how to assist them with understanding and empathy. It would create quite an impact on guests. Moments of drama aside, when a butler knows and
SPA
understands the spa program of a guest, he can converse about the guest’s experiences with good reality, should the guest so desire, and can also take actions to enhance that program—such as adding a complementary (not necessarily complimentary) bath salt to the bath, rather than one that conflicts with the spa program. The spa butler is a new creature in the hospitality and spa industries, for he or she is really the architect of the ultimate spa hospitality experience, designing and arranging the entire spa guest experience. The spa still delivers the spa services, but the butler acts as the main point of contact before, during and after the guest’s stay. Because he understands and knows what the guest is going through, and the basic spa methodologies, he can be there for the guests and extend the entire stay into a smooth experience for them. That’s the simplicity of the spa butler program. Translated into the real world, this program means the butler asks and cares about the guest’s goal in coming to the spa; he cares about the guest’s room, ensuring that the space reflects the guest’s needs and wants. The butler supports the guest by being a sounding board and conversing with understanding and empathy. He introduces the guest to the people, places and services he or she will be experiencing at the spa, answering all questions and resolving all concerns. He smoothes the preparations for each spa experience and helps the guest through the ramifications of each spa treatment, asking the right questions. The spa butler understands the mechanism of each spa treatment in order to give accurate and convincing explanations of treatments to the guest. The application of hot or cold therapy to the body may seem odd or even silly to the guest without an understanding of the expected physiological effects and benefits. Earning the guest’s confidence and compliance with intelligent answers to his/her questions is an important part of the spa butler service and helps the spa personnel to recommend the most appropriate treatments.
Types of Guests
“Solution seeker” guests want a spa experience to alleviate pain and discomfort from their ongoing medical conditions, such as multiple sclerosis, osteo-arthritis, etc. and are hoping to find relief and answers that will alleviate some of their suffering. “Transformer” guests are committed to transforming their own worlds, understanding they play an integral and vital role in optimizing their health and well-being. They trust the spa to have highly specialized facilitators who honor the holistic nature of man.
“The spa butler understands the mechanism of each spa treatment in order to give accurate and convincing explanations of treatments to the guest.” By knowing and understanding each guest’s goal and being there for them in their pursuit of that goal, the butler forms a unique relationship with guests and so brings about the ultimate spa hospitality experience. Assuming this spa butler concept strikes a chord with an owner or manager, the next step is simply to train some or all of the existing butlers on spa methodology with the help of outside consultants working with the in-house spa personnel. It takes a few days of training to implement. Hotels without butlers would need to train butlers first (see article Ask Not What The Butler Did, But What He Can Do For Your Hotel, The Hotel Butler Recognizing the Value Butlers Bring to the Bottom Line), and then add on the spa butler training. To reiterate, a spa butler is a fully fledged butler with additional training on spa methodology—not just a fancy title shoved onto someone whose only familiarity with a butler is from the movie Arthur, for instance. John Gielgud’s sub-voce remark when his boss is in the bath Gielgud just drew for him, is not the kind of attitude that will work for a spa butler.
Your advertising should be here!
. It helps to know that, out of all the possible reasons guests may have for coming to a spa, they all can be categorized under one of the following four categories of spa guests. Identifying them is key to serving them successfully. “Fluff and Buff ” guests are delighted with the ultimate in pampering. They are investing time, energy and money in the expectation they will be treated as kings and queens. They are enjoying a mini vacation from the stresses and strains of everyday life. “ROI” guests are looking for a return on their investment. They are spa savvy, meaning that they have been to spas before and have preconceived notions about what a great spa experience is and should be. They expect their spa experience to deliver on the health enhancement and therapeutic expectations they have formulated.
To borrow from a completely different field, spa butlers are now beginning to appear in hotels like the inevitable next version of your favorite software. How smart is it to talk to guests in Word for Windows 95 when they are using Microsoft Office 2004? There are not many places the many ultimate spa destinations can go to create a unique position in the mind of the guest, but the spa butler provides just such a leap forward—perhaps because it reaches outside the spa itself, where standards are already exquisitely high, to raise the bar even further.
Professor Steven Ferry trains butlers in hotels, resorts, and private estates, and spa butlers in spas. He is Chairman of the International Institute of Modern Butlers (www.modernbutlers.com ) and author of the best-selling industry texts, ‘Hotel Butlers’, ‘The Great Service Differentiators’ and ‘Butlers and Household Managers, 21st Century Professionals’. He can be contacted at stevenferry@modernbutlers.com. Reprinted with permission of www.hotelexecutive.com.
Contact us today at ads@hospitality-maldives.com or visit www.hospitality-maldives.com give your company the MALDIVES perfect exposure! HOSPITALITY DECEMBER 2005 39
SALES & MARKETING
How to implement a
“Think Strawberries Everybody Sells!� program at your Hotel
J
udging by the positive feedback I've received from my last article, I am apparently not alone in remembering James Lavenson's original speech and article from 1973 about managing New York's Plaza Hotel. With most hotels still waiting for the elusive economic turnaround, chances are your property could use the additional revenue being left on the table. The first step in implementing "everybody sells" is to help everyone on your team identify the myriad opportunities to "sell" they encounter every day. This is, of course, easier for some departments than others. Associates of direct-sales departments, such as the front desk, group sales, and food-andbeverage department, will have many obvious opportunities, and if challenged, they can uncover even more sales scenarios that are being overlooked. With a little digging, chances are you can find direct sales opportunities for virtually every department. Of a hotel's typical departments, it is perhaps easiest to identify new sales opportunities for the front desk. Besides the obvious,
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HOSPITALITY MALDIVES DECEMBER 2005
such as upselling at registration and capturing walk-ins, front desk staff can "think strawberries" by: -securing return reservations at departure -handling "after hours" leads for group sales/catering -marketing facilities and services, and personally recommending dining outlets -networking with in-house guests to identify leads for new companies in the area. As with the front desk, most group sales and catering departments can benefit from an increased focus on basics, such being available for call-in leads, returning all messages promptly and being the first to send out a proposal or contract. The sales team also can think strawberries by switching into a more proactive mode.
SALES & MARKETING
For example, just as Lavenson described his sales staff at The Plaza in 1973, most hotel salespeople today sit back and wait for the telephone to ring with inquires. Make sure the sales staff spends at least some time each day prospecting for new business, checking back with groups that previously have used the hotel and following-up with last year's "lost business" to determine if you can get your name into the hat again this year. As with front desk and group sales, chances are that your food-and-beverage staff can easily identify opportunities to think strawberries by focusing on basics such as suggestive selling of desserts and upselling to top-shelf liquors. But the key question, is how often do they actually practice these basics they already know? Chances are some retraining is called for. And with our waitstaff often having the longest interactions with guests, help them by reminding regular guests about your Sunday brunch or your Friday night seafood buffet.
“Finally, everyone on your staff can think strawberries by providing authentic and genuine service that is flexible and customer-focused�
Know your product: Our product is more than four walls and a bed; it's the guest's overall travel experience. Make sure your staff is very familiar not only with your rooms, facilities, services, amenities and outlets, but also are experts on your destination, area attractions, local convention facilities, shopping, dining and driving directions. Know your customer: It is always a challenge to find job candidates who can truly relate to life on the other side of the front desk. Help everyone understand how the frustrations of travel bring out the worst side of even the nicest people, the tremendous pressure to produce that business travelers have, and how leisure guests create unrealistic and unattainable expectations for their elusive vacation time. Connect with your customers: Remind your team that it is their job to bring out the best in others and to initiate a positive interaction, and how doing so can make their job much more rewarding because we all got into this business because we "love to work with people." Benefit selling: Train your staff to use benefit statements when speaking to guests. Rather than saying "we have," "we have," or "we offer," train them to say "you can enjoy," "you can take advantage of," or "you can benefit from."
While it's easy to identify new and expanded opportunities to sell for traditional sales outlets, the real magic in Lavenson's enduring article is that he reminds us that virtually everyone on an entire staff can think strawberries, whether directly or indirectly by:
Closing the sale: Just as Lavenson reported in 1973, most hotel salespeople still have an aversion to asking for the order. Just remind them that closing the sale benefits everyone, including the customer, and that more often than not in our business, the guest initiates the sales inquiry, so we are just helping them buy.
-referring friends and family who might be looking for lodging during holiday periods to your hotel
Measure Sales Productivity: Measure productivity as directly and as accurately as possible, even if it means using a somewhat manual process. Once benchmarks are established, set goals. Post the results in a prominent place.
-mentioning your property as an option for friends and family who might be looking to hold catered events such as weddings, bar/bat mitzvahs, and anniversary parties
-Celebrate success via recognition and incentives.
-networking within any professional, social or fraternal associations that they might be members of; and
-Celebrate team successes and reward superstar individual performances.
-handling vendor relationships with the utmost in dignity and respect as afforded to paying guests in order to encourage referrals and word-of-mouth advertising.
-Make sure that all direct salespeople are on some type of sales incentive that is tied directly to increased sales.
Finally, everyone on your staff can think strawberries by providing authentic and genuine service that is flexible and customer-focused. Even "heart of the house" staff serves internal customers. In today's world of so-called guest disloyalty and brand-hopping, repeat business and word-of-mouth advertising still are our most effective and least expensive sources of future business. Once you have helped everyone on your team identify sales opportunities, you'll be ready to implement the components of "Think Strawberries - Everybody Sells!" at your hotel.
Provide On-going Sales Training: Even though sales fundamentals are easy to understand from an intellectual perspective, one can never cross sales training off of your to-do list. Your staff needs constant reminders to keep utilizing these basics. By using some of the age-old sales principles that Lavenson had so much success with at The Plaza more than 20 years ago, you can implement an "everybody sells" program for your hotel and find the extra revenue your budget so sorely needs as we await the long-promised turnaround in travel demand.
Provide Training on Sales Basics To foster a sales paradigm at your hotel, make sure everyone on your team has had exposure to fundamental sales principles such as these:
Doug Kennedy is the owner of The Douglas Kennedy Company. He delivers keynote addresses and conference presentations for lodging and tourism organizations, and provides sales and training consulting services. For more information, visit www.douglaskennedy.com.
HOSPITALITY MALDIVES DECEMBER 2005
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MISCELLANEOUS
80 Tips For Business Success
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HOSPITALITY MALDIVES DECEMBER 2005
1.
Before leaving work each day, identify those things you need to do the next day.
2.
When you think you may have to compromise on your agenda, classify your issues into "can drop," "nice to have" and "must have" categories. This will prepare you for negotiation.
3.
Before presenting a new idea or an action plan, list the people whose support you will need…learn where each one stands regarding your proposal (pro, con or neutral)…and formulate a plan to handle each person accordingly.
4.
Publicly recognize and reward people who develop themselves and others.
5.
Identify the behaviors that you feel are critical to success in your department, and then lead by example.
6.
Despite your workload, don't bring extra work to meetings. Focus on the issues and the other people at the meeting.
7.
Limit your use of closed questions—those that can be answered with a "yes" or a "no."
8.
Don't overreact to events at work. Problems are to be expected and are rarely catastrophic.
9.
Set aside a little time every day in which you will practice a behavior or skill that you're trying to learn or finetune.
10.
Limit your personal goals. Genuine progress on your two or three most important goals is more meaningful and rewarding than negligible progress on a dozen less critical fronts.
11.
When faced with possible resistance, consider preselling your agenda to a couple of key players.
12.
Avoid collecting and filing information if it is not actually of use to you personally.
13.
Understand that emotional intelligence can transform your performance and career.
14.
Get to know your staff members so that you are aware of how best to help them.
15.
Remember that people of dissimilar ability can find each other difficult.
16.
Set aside a little time every couple of months to review job descriptions and spot any needs for change.
17.
Take the word "try" out of from your vocabulary. Turn intentions into actions.
18.
Remember that, when implementing improvements, things sometimes get worse before they get better.
19.
Measure results achieved, not hours worked or number of activities.
MISCELLANEOUS 20.
21. 22.
Write down your most important goals and keep them in front of you at all times-for instance, on a mirror at home, in your middle desk drawer or on the wall in your office.
37.
Build mental flexibility by doing brainteasers, so you are in the habit of challenging your assumptions.
38.
Recognize that people learn just as much from mistakes as they do from getting it right the first time.
Refrain from saying, "It can't be done," and focus on how you can make it happen.
39.
When recruiting, ask what-if questions to determine how the applicant would respond to tricky situations.
Be persistent but not foolish—if what you are trying is not working, get feedback and ideas from others.
40.
Let candidates for a job know how much time the interview will take. This will reassure them that they will have the opportunity to give their information and to ask key questions.
41.
Monitor trends in your industry to determine which competencies will become increasingly important. Then, ensure that your organization has employees with these abilities either by hiring from outside or training current staff.
42.
Conduct an informal survey of your top performing new hires to find out how they heard about their positions. Focus your recruiting efforts on those sources that have produced your best employees.
43.
Encourage people to focus their training and development on areas where they can achieve the greatest impact on organizational performance.
44.
When searching for the right candidate for a position…remember to target the market that matches your candidate requirements. Don't waste time and effort looking at the wrong people. Instead create a jobspecific profile so you have a clear vision of the job and responsibilities it entails.
45.
Make department and corporate goals come alive for staff members by identifying the enablers - resources, skills or abilities critical to mission and goal achievement - that will allow the group to contribute to the corporate mission and goals.
46.
When you encounter recurring issues or opportunities, seek the help of those unfamiliar with the situations to get a fresh perspective.
47.
Regularly assess the strengths and weaknesses of your strategy, your processes and your customer approach. In today's fast-changing world, ongoing review of these areas-and implementing change as needed-is critical.
48.
Consider how your organizational structure will need to change in the near- and long- term. Give your employees the chance to adjust beforehand.
49.
Incorporate communication strategies into your business plans. Ask yourself what information and feedback you need to achieve your objectives.
Remember that public criticism only works when group dynamics are the issue.
50.
Be realistic in budgeting a new project—avoid the temptation to keep costs unrealistically low in order to get the project approved.
Complete a thorough and objective evaluation of your product or service annually; also determine the health of your organization and its ability to grow.
51.
Draw how you see the solution to a problem—visual images may be a greater stimulus to creativity than your words.
23.
Focus on people's strengths rather than their shortcomings.
24.
Make sure your network is reciprocal: share information, ideas, resources or influence with others—don't just take from those within your network.
25.
Be alert to details, especially when working in an international context. For example, colors, numbers and symbols often have different meanings in different cultures.
26.
27.
Set a good example for others by consistently engaging in solid ethical behavior and confronting any unethical practices. Live in the present. Don't stress about mistakes in the past or worry about problems in the future.
28.
As a manager, you are now personally responsible for operating within the law. Here's an important way to ensure you're safe: Know the law. Practice the law. Protect yourself and your organization.
29.
Remember that good ethics lead to good business.
30.
Do not confuse assumptions with facts, or you may make a major mistake.
31.
When the minutes of a meeting you attended are distributed, read them through and query anything about which you are dissatisfied—from conclusions reached to assignments given you.
32.
Resist using buzzwords—they weaken communication.
33.
Express your opinion with conviction, but don't neglect the position of the other person—be prepared to listen and to be influenced.
34.
35. 36.
Compare the amount of time you spend talking and listening during a typical conversation. If you are talking more than 50 percent of the time, you're talking too much!
HOSPITALITY MALDIVES DECEMBER 2005
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MISCELLANEOUS 52.
Make your decision, but prepare a fallback position. If you've made the wrong decision, you'll know what to do next to rectify the situation.
53.
Monitor employee progress on a task—but not every hour of the day. If things go wrong, give your employee the chance to put them right by him- or herself.
54.
Remember that teleworkers are entitled to a life outside of work. So don't telephone them at home in the evening or on the weekend unless it's a major emergency.
55.
Ensure that people who work with you and your employees know that you have delegated a task to your employee and that you have given the employee the authority to do the job.
56.
Monitor the performance of anyone you ask to assist new hires before you make the assignment.
57.
Share solutions to problems found by your department with other groups within your organization, thereby saving other groups from having to reinvent the wheel.
58.
Treat resistance to change as a problem to solve, not as a character flaw.
59.
Test the practicality of your decisions to increase their probability for success. Get into the habit of asking yourself at each stage of the decision-making process whether the decision is workable.
60.
61.
Do an annual review of efforts to achieve your unit's goals to determine any training needs or other shortcomings holding you back. Then, act to address the issues identified.
62.
If work due dates are missed, discuss the consequences and options with the person to whom you assigned the task. Don't take the incomplete delegated work back.
63.
Remember that management is not a popularity contest-you should work and behave not to be liked but to win the respect of others.
64.
44
Ask your employees how their objectives contribute to the unit's success. If they don't know, help them understand how their goals align with the unit's strategic objectives.
If you're new to management remember these words of caution: hold your authority in check. Don't overreact to your new position. And don't play favorites.
65.
Isolate the reason for poor performance. Maybe the staff member does not know what you want him or her to achieve.
66.
Communicate constantly with project team members: hold daily team briefings and weekly team meetings and encourage people to share information and ideas.
HOSPITALITY MALDIVES DECEMBER 2005
67.
If you want your team to reach a consensus, let them know the place and time for the meeting in advance. With a few days, notice, they will have time to consider alternative ideas and arrive at the meeting with an informed choice.
68.
Meet regularly with those responsible for project implementation, not only to determine the project's status, but also to communicate its importance to the support of the group-and consequently, the corporategoal.
69.
Consider the variety of time zones or office locations for those you are contacting and rotate locations and/or start times for meetings.
70.
Challenge the analyses and findings of groups that have worked in the same area for a long time. Encourage the members to rethink their conclusions to ensure they are timely and accurate.
71.
Inform customers and suppliers of significant change initiatives, and ask how these could impact the support they receive from, or provide to, the organization.
72.
During face-to-face meetings, reinforce the corporation's commitment to customers as often as possible if you truly want to build a customer-centric organization.
73.
If a customer requirement changes, be prepared to change your process or system, too.
74.
Think globally. Study how your competition sells its products internationally to see if you can do the same.
75.
Write the business proposal first, then think about how you want it to look.
76.
Identify the key people you need for your strategy to work. Focus on attracting, deploying, developing and retaining these people.
77.
Put yourself in your competitor's shoes. If you were to compete against your firm, what would you do? Based on your thinking, plan a counterstrategy.
78.
Identify and plan to avoid the constraints to implementing a plan before you begin implementation.
79.
Be open to the idea that others' behavior, no matter how unreasonable, may be due to personal or workrelated problems about which you know nothing.
80.
And don't forget: maintain your sense of humor. Humor is the best antidote to stress. We do our teams and ourselves a favor when we remember to stop and laugh. It will lower the emotional temperature.
Amanet.org is the official website of the American Management Association, a global not-for-profit, membership-based association that provides a full range of management development and educational services to individuals, companies and government agencies worldwide."
HUMAN RESOURCES
Supervisors are the core of your business
I
n fulfilling my occupation I have the privilege of looking at the inner workings of many different hospitality businesses. We work with the complete spectrum from fast food to five star. After thirty years in hospitality management I have come to some important conclusions about the key issues that make for business success. The attention you pay to the creation of a strong, well structured supervisory team is one of these key issues. Think about it for a moment what do (or should) your supervisors control? In simplistic terms, your supervisors control the staff who earn you your income and who create most of your costs. They really hold the economic efficiency of your business in the palm of their hands a well trained supervisor will contribute a great deal to your business, while a poor one will cost you a fortune. This probably sounds logical when put this way, but out there in the real world I see so many examples of ill equipped supervisory staff that I feel the need to go on a mission. A supervisor is a team leader. Consider the authority and responsibility you need to give a team leader in order to hold them accountable for the performance of their team. For a start they have to have a right of veto somewhere in your recruitment process, otherwise they have the very handy excuse: 'I didn't choose them; it's not my fault'. This leads us to the necessity of them having some core skills in basic recruitment and selection, otherwise they will have to learn by a process of trial and error, for which you will bear the cost. Next, they need to be held accountable for the induction and skills training within their team, or you will get the parallel, and equally handy excuse: 'I didn't train them; it's not my fault'. In my mind, good training skills are a prerequisite for any advancement beyond floor level. How can you ensure the productivity of a team if you can't train? Recruitment and training skills are all about constructing effective teams, but what about ensuring the productivity and quality performance of the team once it has been established?
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who control your teams need to have an understanding of the rules or you stand a good chance of ending-up with a very expensive situation on your hands. Most importantly, your supervisors lead the staff who do all your selling and provide your customer service, therefore they control your customer average spend and a large part of your customers' perception of your business (and therefore repeat trade). We see lots of managers who can plainly see the urgent need to improve these aspects of their business, but who are frustrated in moving forward because they have to work through supervisors who are incapable of doing what is required. To complete the financial picture, your supervisors control your wage costs, your cost-of-sales, and a fair proportion of your controllable overheads. So, if they control both your income and most of your costs, surely they are the key to your profit margin? I think so. You may be a business manager or owner reading this and saying to yourself: 'That Eldred doesn't know what he is talking about. I've got a good business and I don't make my supervisors do all that stuff I do most of it myself'. That's OK, as long as you don't want to take holidays, are content with a small profit margin and you are happy with being a small business for the rest of your days. It's all a matter of good business structure. A disturbing percentage of the managers in this industry spend their time pushing their supervisors to one side and directly selecting and leading the bottom line staff. In other words they call themselves managers but function as supervisors. Meanwhile there is no business plan, marketing plan, human resource systems, financial control systems, etc, in place. Without these things in place the manager becomes trapped into a semi hands-on role from which there is little chance of escape. This is often the symptom of making a basic managerial mistake and promoting your best waiter or cook to supervisor and finding that you have lost your best waiter or cook and gained an ineffective supervisor. Then you get relentlessly drawn downward to rectify the shortcomings in your supervisory structure and slowly sink into day-to-day supervision instead of looking ahead and working on your business, not in it.
Here's where basic leadership skills of communication, motivation, coaching, counseling and discipline come in to the equation, but not everyone is equipped to take on these skills. We still get a fair selection of really submissive people and people with an overwhelming need to be liked sent to us for supervisory training, and there's not much you can do with them. You can't turn hamburger into fillet steak.
A good manager will concentrate a substantial proportion of their attention into creating and maintaining a solid, skilled supervisory structure. There is obviously an up-front cost in doing this, but the payback is impressive, both in financial terms and in quality of life for the manager concerned.
We all now face the added complication of having to recruit, train and lead staff in a legal and industrial minefield, which can have nasty ramifications in the form of unfair dismissal claims, harassment claims, WorkCare claims or union action. The people
Tony Eldred is the Managing Director of hospitality management consultants Eldred Hospitality Pty. Ltd. For more information visit www.eldtrain.com.au or email Tony directly at teldred@eldtrain.com.au!
HOSPITALITY MALDIVES DECEMBER 2005
HUMAN RESOURCES
How to motivate your staff
Y
our staff aren't just there for the money. No, seriously, they're not. It's obviously a big part of what motivates them to come to work every day, but it's not the only thing. In fact, if we're being honest, the hospitality industry isn't exactly famous for its bulging wage packets, so it's even more important that workers have the extra things that give them the satisfaction they need from their job. You could also say that restaurant managers have a much greater interest in motivation because many of their staff perform jobs that bring them in regular contact with the public. This means personal attitude and character are vitally important. It's up to the manager or the boss to provide that motivation, and it doesn't have to be all about financial rewards. Sometimes a “well done, good job” can be more effective. The first trick when motivating staff is find out what they want. This sounds simple, but your view as the manager might not be the same as the staff. For example, when managers are asked to list the top ten things they think motivate their employees the list looks like this: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Salary Bonuses Holidays Retirement Other benefits and perks Interesting work Responsibility Feedback Training Respect
When employees list what actually motivates them, the list looks more like this: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Interesting work Responsibility Feedback Training Respect Salary Bonuses Holidays Retirement Other benefits and perks
In other words, managers rank money items as their employees' top five motivators. Employees, however, rank these as their bottom five. You could argue that managers pick the top five motivators because these are the things that they can “give” their employees without having to ask what they want or need, i.e. no involvement on a personal level. Interestingly, when managers are asked what motivates them, they give the list in the same order as the employees. The manager's main task is to motivate his or her team, both individually
and collectively, so that the team members can produce the best results and also get personal satisfaction. The main tools a manager can use to motivate your staff are quite straightforward: 1. 2. 3. 4. 5. 6.
Approval, praise and recognition Trust, respect and high expectations Loyalty Job enrichment Good communications Cash incentives
This list is arranged in order of importance: note that cash comes last. These tools underline an important fact of staff motivation, that persuasion is far more powerful than coercion. The former builds morale, initiative and motivation, while the latter kills them. The three basic components of persuasion are: - suggest - play on the person's sentiments - appeal to logic For example: “I've been thinking it might be a good idea to wash those dishes now, what do you think? [suggestion]. It would be a really big help [sentiments] and, besides, if they're done now we can all leave early [logic]". Compare this with, “Go and wash those dishes. Now!” Once convinced, the person is so motivated to do the job, the manager will have achieved their goal quietly, gently and with the minimum effort. Remember that even though you're a manager yourself, you're still an employee (unless you're running your own business, of course). How good do you feel when your boss tells you you've done a good job? Sometimes just saying quick things such as “thanks for sorting out those supplies, they're sorted so much better now” is more motivational when done often than a big annual prizegiving. As with a lot of management techniques, the theories of motivation are very much based on common sense. A do-untoothers attitude will build respect and satisfaction for staff, and consequently for you as well. Finally, here's a quick run-down of some actions that you should be applying to your day-to-day management to keep your staff motivated: Clear communication tell your staff exactly what needs to be done, how you can achieve it together and what the outcomes and rewards will be. - Offer valued rewards. - Do not over-control. - Recognize achievement. - Ensure that rewards are given fairly. Teaching someone something is an excellent basis for being able to motivate them.
HOSPITALITY MALDIVES DECEMBER 2005
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MISCELLANEOUS
10 Tips for Managing your Time 48
HOSPITALITY MALDIVES DECEMBER 2005
MISCELLANEOUS
1.
Plan the following day at the end of each day. This is the time your mind is most clear. If you try to plan your day in the morning, you become distracted by your e-mail, your voicemail, the telephone, your employees, your customers, and so forth. It’s nearly impossible to think rationally about your priorities when you’re being pulled in 10 different directions.
It’s also a good idea to plan the following week at the end of each week, plan the following month at the end of each month, and plan the following year at the end of each year. Make this part of your regular routine. If you follow no other piece of advice on this list, follow this one. I guarantee you this simple change will increase your productivity more than you can imagine.
2.
Prioritize your work. Choose the one most important task you need to accomplish each day, put a star beside it on your to-do list and don’t leave work without completing it.
6.
Learn to say “no”. This is one many entrepreneurs have trouble with. They know they can solve nearly any problem an employee brings to them, so they are inclined to do so. It just seems easier to say “yes” and take over, than it does to say “no” and leave the problem with their employee. “No” doesn’t mean you are not interested or that you are not willing to help, it just means that you are not willing to take your employees problems off of their shoulders and pile them onto yours.
7.
Delegate everything you can. This needs to become part of your ongoing behavior. New work will show up on your desk on a regular basis. If you don’t need to deal with it, don’t. If it is important that it gets done, but someone else can do it, then 9 times out of 10 you should pass it along. Keep the true value of your time firmly in mind and you will easily be able to decide if you should take it on or not.
3.
8.
4.
9.
Use a gatekeeper. If at all possible, have someone else screen your visitors and your phone calls. They can then set up appointments for you that fit into your schedule rather than allowing you to be disturbed at random throughout your day. If this is not possible for financial reasons, voice-mail and posted office hours are a good start.
Do one thing at a time and complete it before moving on to something else. Most entrepreneurs move and think at an accelerated pace. Consequently, they often do not have the patience to finish what they have started. They want to get on to the next thing right away, so they tend to leave a wake of unfinished projects behind them. Unfortunately, this approach can be highly unproductive.
Successful entrepreneurs realize this, and though it may initially feel against their nature, they make a conscious effort to complete what they have started. They know that the value in an activity cannot be fully realized until it has been completed.
5.
Organize your meetings. Whenever possible, schedule meetings in advance, rather than holding them spontaneously and always use an agenda. Also, make sure your meetings have both a starting time and an ending time.
Outsource everything you can. Occasionally it may be prudent to delegate work to an outside expert. If you are having computer troubles, for example, it may make more sense to hire a consultant to solve them for you than to waste time trying to solve them yourself. If a problem can be solved with money, don’t think of it as a problem, think of it as an expense.
Clarify your communication. Miscommunication is responsible for vast amounts of wasted time and money. Not only does it cause mistakes, but those mistakes also need to be repaired at the company’s expense. So make sure that when you say something, you only need to say it once. Also, be clear and include all details when leaving vocal or written messages. A lot of wasted time can be avoided if people don’t need to engage in telephone tag just to find out information that should have been made clear in the first place.
10.
Do some “strategic planning” every week. If you don’t start doing this now you will never get around to it, so schedule some quiet time on your calendar and let your employees know you will be unavailable. This makes many entrepreneurs nervous at first. They imagine that if they are unreachable by their employees for an hour then everything will fall apart. If this describes you, then try it for two weeks as an experiment. You may be surprised to find your business still standing when you open up your office door at the end of that hour.
Mark Wardell is President and Founder of Wardell Professional Development, a business consulting firm, focused on the unique needs of small/mid sized growth companies. For more information visit www.wardell.biz or email Mark at info@wardell.biz!
HOSPITALITY MALDIVES DECEMBER 2005
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FINANCE & ACCOUNTING
Eliminate Poor Receiving Habits by Bill Schwartz
In virtually every industry where significant quantities of goods are purchased on a frequent basis, a formal receiving department is charged with the responsibility of making sure what was ordered was received. Only in the restaurant industry is receiving taken lightly. Of course, every operator I talk to tells me that receiving is an important part of the manager or chef's job description, but in practice, what really happens? Typically, the goods arrive, someone gets the invoice, does a quick check to see if it's all there (optional), signs the invoice, and off the driver goes. Nine times out of 10, there is no purchase order, no receiving log, and no real effort made to check pricing, quality or what's inside the boxes. 50
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have seen 50 case grocery orders received in less than a minute! I've also seen situations where the driver takes his own inventory, brings in the goods, puts them away, and then gives the chef or manager the invoice to sign. No employee of the restaurant has even seen the goods. Let's face it. Food cost originates at the back door and can never be higher than the total purchases. Therefore, the receiving function becomes your first chance to control costs once the goods have been ordered. Our studies have shown nearly half an operation's variance (difference between actual and ideal food cost) is the result of poor receiving habits. To the average restaurant, this represents a whopping 2% of sales. This money would have been additional profit since all of it would drop directly to the bottom line. Over the years I must have heard every excuse in the book for the typically poor receiving practices which dominate the industry. Among the most frequent is lack of time to do it right. I would think that if it were possible to save 2% of sales through good receiving practices, the operation with gross sales of $500,000 annually could hire part-time help at $5 per hour to do nothing but receive goods 20 hours a week, and still have $5,000 left over at year end in additional profit. In most cases, however, it is not necessary to hire someone new. By shifting around the schedules of those employees interested in learning the receiving function to correspond with delivery times, the same end result can be accomplished. The isolation and use of these individuals also fits in nicely with a more formal management program. In order to implement a good receiving function, you need a few tools. First and foremost, you need good scales. A large number of items are purchased by weight, and the only way to tell if you got what you are being asked to pay for is to weigh the stuff. This can be difficult to do without good scales. Second, you need to record what was ordered and the price. This can be a standard purchase order document, or simply a piece of paper on which the person placing the order writes down the necessary information. Finally, you need a document to record what was actually received in UNITS. I call this document a receiving log, and it becomes instrumental in the method of control described by my articles. With these tools in hand you are now ready to proceed.
Notice that the invoice is not taken from the driver until the goods are counted. There are two reasons for this practice. First, the knowledge of what is supposed to be there could bias the count. Second, this practice prevents reconciliation on an intermittent basis, which could throw off the count.
. Also note that the goods are put away immediately after the driver leaves. This keeps stock in its proper place, aids in the rotation process, prevents perishable items from deteriorating, keeps ice solid and gets the goods away from the back door so as to avoid any temptation on the part of employees to make unscheduled transfers (polite term for stealing). Think of invoices as legal documents. Once signed, you are legally obligated to pay the amount due, regardless of the accuracy of the invoice. It is therefore extremely important to be sure that the invoice is correct and that all adjustments made are clear and obvious before signing it. If it is not possible to modify the invoice due to lack of space or legibility, attach a memo which clearly defines the modification. Be sure to change the total due on the invoice, and indicate on the invoice that a memo is attached which explains the changes.
. Here's another startling discovery. The two worst people to use for receiving goods are the chef and the manager! Although the chef or manager may be the most knowledgeable about what was ordered, they are also the two individuals with the least amount of time to devote to the process. There are far too many interruptions for them to do an accurate receiving job. Since the receiving function is largely clerical in nature, it is a mis-allocation of human resource to have managers perform clerical functions. Even though a manager can do a clerk's job, the reverse is usually not true. I strongly advise you to consider another employee for the receiving job. In order for this to work, you may need to schedule receiving hours with your purveyors. And, you will also need to inform the receiving clerk job what was ordered, from whom, at what price and specification. This can be easily accomplished with purchase orders and specification training.
. The person ordering the goods should be responsible for the completion of the purchase order. It takes little or no additional time for that person to write down what is being ordered if this is done while the order is being phoned in to the purveyor. Most people are coordinated enough to hold the phone in one hand and write with the other, and if not, they probably shouldn't be placing orders anyway!
I recommend the following steps for the receiving process: 1. 2. 3. 4. 5. 6. 7. 8.
Do not accept the invoice from the driver Have items removed from the truck and stacked just inside the back door. Count the items in units while checking the quality and record what you see on the receiving log. Accept the invoice from the driver. Reconcile the invoice against the receiving log for quantity. Adjust the invoice if necessary. Reconcile invoice against purchase order for price and adjusted quantity. Adjust invoice if necessary. Sign corrected invoice and dispatch driver. Put the goods away immediately.
The fact is that receiving is vitally important and needs as much attention in the food-service industry and it gets in every other industry. Receiving must be done religiously, consistently and accurately. The end result will be well worth the effort. It is possible to absolutely eliminate the possibility of purveyor theft or invoice errors overnight. The effect of good receiving practices on profitability will be immediately evident.
Bill Schwartz is the President of System Concepts Inc., developers of the FOOD-TRAKŽ System and one of the world’s leading specialists in the field of food and beverage management. For more information please visit their website www.foodtrak.com!
HOSPITALITY MALDIVES DECEMBER 2005
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HOSPITALITY NEWS
New brand launched at WTM Monday
High Oil Prices Yet to Impact on Tourism WTO says
John Keells, Sri Lanka’s largest Hotel Group, has unveiled its new brand, Cinnamon Hotels and Resorts at the World Travel Market offering an ‘affordably indulgent experience for people of all ages’. Cinnamon Hotels and Resorts is the culmination of a $1 million brand research and discovery program and a large scale refurbishment plan, which consolidates a portfolio of city and resort properties. Initial focus will be on Sri Lanka and the maldives with expansion across South Asia and the Gulf by 2010 with an additional 20 hotels. Once completed, it is expected that Cinnamon Hotels and Resorts will be on par with some of the world’s best hotels and a leader in Asia. Designed to encompass all the attributes of a prestigious hospitality group, the Cinnamon brand will be synonymous with luxury, comfort, creativity and discovery and encapsulate worldrenowned Sri Lankan hospitality. This will be achieved by providing Comfort through consistent hospitality standards overlaid with simple treats and sincere surprises, Creativity to inspire ideas that add colour to life and Discovery, which comes from the distinct personality of each property in terms of the array of activities available. Mr. Rohan Karr, Executive Vice President, JKH & CEO of Cinnamon Hotels & Resorts explains, “The vision behind this re-branding process is to build an upscale brand, quality driven with high service standards. All our Hotels and Resorts will be upgraded and these superior products will embody the Cinnamon brand personality and help lure the high spending, discerning traveller. Ultimately it is expected that Cinnamon Hotels and Resorts will offer a truly differentiated experience to compete with some of the region’s best hotels.”
Higher oil prices have so far had limited effect on international tourism growth according to the United Nations World Tourism Organization (WTO).
Accor to continue Fiji expansion Accor is to continue its rapid expansion in Fiji with its appointment to manage one of Fiji’s best known hotels, the Fiji Mocambo Hotel, which will be relaunched as the Novotel Nadi Fiji in late 2006 after the completion of an extensive renovation programme. The new management contract is effective December 5, 2005. Accor’s appointment as manager follows the recent purchase of the hotel by Pandey Investments Fiji Limited, a subsidiary of CP Group which own several Accor managed hotels in both Australia and New Zealand. The hotel will remain fully operational during the renovation and prior to its Novotel rebrand next year, with renovation to be staged in a way to cause minimal disruption to guests The announcement of Accor’s latest management contract in Fiji and impending Novotel brand launch will complement the imminent opening of the group’s new five-star property – the Sofitel Fiji Resort & Spa on Denarau island - scheduled for 10 December 2006. The additional two hotels will effectively double Accor’s presence in Fiji in the space of a year. Accor established its presence in Fiji earlier this year with the launch of the Sofitel managed Vomo Island Resort, and the Mercure brand followed with the renovation and re-branding of the Dominion International to Mercure Hotel Nadi in April 2005. Fiji Mocambo in Nadi is set on 42 acres of tropical gardens, a short drive from the international airport and only 15 minutes from Nadi's business district. The future Novotel will be an ideal base for travellers wanting to explore Fiji and its islands. The hotel offers 128 guest rooms featuring either a balcony or patio overlooking landscaped gardens. The hotel also offers a variety of recreational facilities such as a nine-hole golf course and tennis, along with extensive conferencing facilities.
A recently concluded WTO report demonstrates that up to the moment, the impact of high oil prices in international tourism has been little. Experts consulted in the framework of this research project note that only a small percentage of the increase in oil prices as been passed onto consumers in terms of final purchase price, says WTO Chief of Market Intelligence, Augusto Huéscar. In addition, the imposition of surcharges by many airlines does not appear to have discouraged demand for air transport - at least for the time being. According to the latest data from IATA, passenger traffic from January through September 2005, increased by 8.3 per cent, with airlines in the Middle East and in Africa reporting double-digit growth rates. Demand for international tourism has remained strong through 2005. WTO's estimates for the year, as published in the October issue of the WTO World Tourism Barometer, show that 2005 is expected to end with a growth of 5 to 6% in international tourist arrivals, which can be considered exceptional. International tourism is not only on track to consolidate the bumper year it had in 2004 (+10.7%), but it will also exceed the forecast long-term average growth of 4%. The full WTO report on the impact of high oil prices in international tourism, due to be published next month, highlights moreover that, in recent crises higher oil prices had no direct impact on tourism. The effect was rather indirect, as price hikes contributed to the deterioration of the economic situation, and consequently to the corrosion of consumers'purchasing power. "But, while the past oil price peaks had a significant negative impact on tourism through to the economy at large, on this occasion the global economy has remained relatively steady and the inflationary pressure appears to be limited for now" underscores WTO Secretary-General, Mr Francesco Frangialli. Unlike previous crises it is not an unexpected shock, but rather a progressive escalate predominantly reflecting a strong demand for energy driven by economic growth. Oil prices might affect the bottom-line results of tourism companies through higher costs. But for the moment consumer confidence is still high and tourism demand has not been affected. Transport companies suffer increases in fuel price of course the first and most directly. "The airlines hardest hit by the rises will be those in the US still dealing with the aftermath of previous year's negative events", he explains, "although continuing high oil prices may also affect tourist flows to developing nations as their airlines' capacity to absorb such increase is significantly lower". Consequently tourism to these countries, in which distance and air access from important source markets are already in many cases a bottleneck, may also be affected, in case transport costs rise further. “But we need to keep this in perspective," he adds. In real purchasing terms oil prices are now below those of the early 1980s peak and nearly all the major losses reported in the airline sector are concentrated in the United States. "While IATA anticipates a slow down in passenger traffic growth in 2006, it still forecasts a 3.6 per cent increase." Barring other unforeseen shocks, WTO is confident that tourism will "continue to show healthy growth globally", albeit with changes in the strength of particular generating markets and destinations and perhaps a bigger push in intra-regional travel, says Mr. Frangialli.
Hospitality News - courtesy of ehotelier.com
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HOSPITALITY MALDIVES DECEMBER 2005
HOSPITALITY NEWS
Singapore Airlines launches online merchandising solution with Amadeus e-Travel Search
Singapore Airlines launches online merchandising solution with Amadeus e-Travel
Singapore Airlines (SIA) recently launched Amadeus e-Travel Flex Pricer on singaporeair.com. This online merchandising solution will offer SIA best-in-class availability, faring, and shopping capabilities to its international and domestic travellers. Singapore Airlines carries roughly 15.9 million passengers across a route network of 60 desintations in 32 countries.
Singapore Airlines (SIA) recently launched Amadeus e-Travel Flex Pricer on singaporeair.com. This online merchandising solution will offer SIA best-in-class availability, faring, and shopping capabilities to its international and domestic travellers. Singapore Airlines carries roughly 15.9 million passengers across a route network of 60 desintations in 32 countries. Amadeus e-Travel standalone merchandising solution, based on Amadeus e-Travel Flex Pricer, can easily be integrated into an airlines existing infrastructures to reduce costs and increase time-to-market. This solution enables airlines to implement their new faring strategies, to manage and display real-time availability, structure and manage fares and fare families. Additionally, this solution is available in 23 languages off-theshelf and provided SIA the ability to offer 7 languages (English, French, Deutsch, Chinese Traditional, Chinese Simplified, Japanese and Korean) to their end-users in the region to extend their market reach quickly and cost efficiently. Amadeus e-Travel Flex Pricer technology allows users to see applicable fare options across different times, fare classes and dates on a single screen, offering users a broad choice between price, schedule and fare flexibility. Jérôme Destors, Commercial Director of Amadeus e-Travel, said, “We are proud to be a technology partner with a prestigious airline that prides itself on delivering customer excellence like ourselves. With our experience in serving the ecommerce needs of over 60 airlines, I am confident that Singapore Airlines will appreciate the continuous improvements that we regularly deliver in our solutions.”
Amadeus e-Travel standalone merchandising solution, based on Amadeus e-Travel Flex Pricer, can easily be integrated into an airlines existing infrastructures to reduce costs and increase time-to-market. This solution enables airlines to implement their new faring strategies, to manage and display real-time availability, structure and manage fares and fare families. Additionally, this solution is available in 23 languages off-theshelf and provided SIA the ability to offer 7 languages (English, French, Deutsch, Chinese Traditional, Chinese Simplified, Japanese and Korean) to their end-users in the region to extend their market reach quickly and cost efficiently. Amadeus e-Travel Flex Pricer technology allows users to see applicable fare options across different times, fare classes and dates on a single screen, offering users a broad choice between price, schedule and fare flexibility. Jérôme Destors, Commercial Director of Amadeus e-Travel, said, “We are proud to be a technology partner with a prestigious airline that prides itself on delivering customer excellence like ourselves. With our experience in serving the ecommerce needs of over 60 airlines, I am confident that Singapore Airlines will appreciate the continuous improvements that we regularly deliver in our solutions.”
New Evason Hideaway at Yao Noi / Thailand Evason Hideaway at Yao Noi Begins Development with Ground Breaking Representatives of Pakoh Hotel Co.,Ltd. and Six Senses Resorts & Spas recently performed the ground breaking ceremony for the newest Evason Hideaway on the Thai island of Yao Noi. The Evason Hideaway will consist of 54 pool villas in three styles ranging from 120 square metres to 190 square metres, plus a large 4-bedroom hill-top villa. Several of the villas will feature their own private Spa Suites. It is located in Koh Yao Noi, Phang Nga Province on hills forested with lush green trees, palm trees, mangroves, rubber tree plantation, and facing a white sandy beach, which opens to the stunning islands of Phang Nga Bay. The design and material selection of this Evason Hideaway at Yao Noi is based on attention to detail and commitment to the environment, creating an uncompromised standard of luxury and Innovative Style. There will be several restaurants and bars, a wine cellar and a chef ’s table. Recreation facilities will include a water sport centre, a gym and a specially designed Six Senses Spa village. The 9.6 hectare Evason Hideaway, which is scheduled to open by the end of 2006, can be reached by speed boat, both from Phuket – about 40 minutes, or from Krabi – about 25 minutes.
Asia Pacific Travel Growth remains Strong Asia Pacific travel growth continues to remain strong, according to the latest booking figures issued today by travel facilitator, Abacus International. In September 2005, total bookings (FIT + domestic + group) on the Abacus system increased by 14% over the corresponding period in 2004 to more than 4.47 million. Abacus President and CEO Don Birch said, “As we enter the last quarter of what looks to be another record year for the industry, we see that Intra-Asia travel is continuing to drive the growth in Asia Pacific travel. We expect this growth to continue through 2006, fuelled by the estimated 7.5% growth in passenger volumes from 2004 to 2008 predicted by the International Air Transport Association. “That said, in recent years travel – especially short-haul intraAsia travel – has proven to be resilient to periodic shock events, and because travel is now considered by many to be a consumer ‘right’ rather than a luxury, it will continue to remain resilient in the face of rising fuel prices.” As with previous months, Intra-Asia travel accounted for the majority of bookings made at more than 81%. Star performer this month was again the Asia to Middle East travel route, with strong growth figures showing a 117% increase in bookings over the corresponding period in 2004. Travel between Asia and the Middle East have been showing strong growth signs month on month since July this year. Factors contributing to this rise in consumer and business travel can be linked to the stronger ties being formed between the governments of Asia and the Middle East, thus spurring an increase in business and trade relations.
Hospitality News - courtesy of ehotelier.com
HOSPITALITY MALDIVES DECEMBER 2005
53
SALES & MARKETING
10Client Trust Ways to build
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HOSPITALITY MALDIVES DECEMBER 2005
SALES & MARKETING
1.
6.
Keep your agreements with your clients – If you promise delivery on a particular day, make sure to deliver when it was promised. Even something as small as the time you have scheduled an appointment is an agreement. Each time you break an agreement with a client, you break the trust.
Carefully explain the client’s role – When a client is clear on what his or her role is then the client gets clear on what progress can be made without his or her involvement and what needs his or her input before moving on. Getting really clear on what the client needs to do to move his or her case forward, helps you work as a team and builds trust.
2.
7.
Create realistic client expectations – Help the client to understand exactly what you will do for him or her.
Discuss potential pitfalls – Nothing disturbs the trust of a client more than when something unexpected happens. (If it is good of course you can celebrate! Whew!) Guard against something negative happening as a surprise by discussing the potential pitfalls with the client.
Put boundaries around what is included in your service and what is not. What will create extra charges? How and when will you be billing the client? Living up to the expectations you create helps your clients to take you at your word.
3.
8.
Help client to understand the process – If your client understands how you and your office works the client can then know what to expect and when to expect it.
Review the agreement in detail – Any agreements that the client is going to have to make should be discussed in detail. Trust is built over a long period of time but it can be broken easily. A surprise that results from an agreement the client made but is unaware of breaks that trust quickly.
4.
9.
Explain your plan and strategy – Not only does the client need to understand your office procedure but also what the plan and strategy is for his/her particular case. This will help client to know what to expect and when to expect it. Trust comes when the client feels confident and comfortable with the plan and the strategy.
Avoid making the client feel stupid – No one likes to feel stupid. If clients feel that you think they are stupid they will no longer entrust you with their ideas or thoughts. Clients who don’t feel valued by the professional may stop trusting that person. Professionals probably don’t set out to make a client feel stupid. In fact it may be an attitude, an inadvertent comment, or a look that gives the client that impression. Be aware of your inner thoughts. They show up without your noticing. Use careful language.
5.
10.
Never over promise – It is tempting to promise whatever the client requests without consulting a schedule or asking if it is doable. Over promising often causes broken agreements and thus broken trust.
Don’t allow interruptions at meetings – If you take interruptions during meetings with clients it makes them feel they are not important to you. Eventually you erode the good will and trust that you had with them.
Copyright © 2005 all rights reserved. Permission is granted to reproduce in its entirety including copyright and contact information. Alvah Parker is a Practice Advisor and Career Coach as well as publisher of Parker’s Points, an email tip list and Road to Success, an ezine. Parker’s Value Program© enables her clients to find their own way to work that is more fulfilling and profitable. Her clients are managers, business owners, sole practioners, attorneys and people in transition. Alvah is found on the web at www.asparker.com. She may also be reached at 1-781-598-0388.
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AWARDS
The 2005 Winners World Travel Awards Indian Ocean’s Leading Destination: Maldives Indian Ocean’s Leading Airline Air Mauritius
Indian Ocean’s Leading Tourist & Convention Bureau Maldives Tourism Promotion Board
Indian Ocean’s Leading First Class Airline Air France
Madagascar’s Leading Hotel Hilton Madagascar
Indian Ocean’s Leading Business Class Airline South African Airways
Maldives’ Leading Hotel One&Only Kanuhura
Indian Ocean’s Leading Airport Male’ International Airport, Maldives
Maldives’ Leading Resort Coco Palm Resort & Spa
Indian Ocean’s Leading Casino Resort The Plantation Club Resort & Casino, Seychelles
Maldives’ Leading Spa Resort Soneva Fushi Resort & Spa
Indian Ocean’s Leading Conference Hotel Hilton Madagascar
Mauritius’ Leading Hotel One & Only Le Tousserok
Indian Ocean’s Leading Car Hire Avis
Mauritius’ Leading Resort The Residence
Indian Ocean’s Leading Golf Resort Belle Mare Plage Resort, Mauritius
Mauritius’ Leading Golf Resort Belle Mare Plage Resort
Indian Ocean’s Leading Hotel One & Only Le Saint Geran, Mauritius
Mauritius’ Leading Spa Resort One & Only Le Saint Geran
Indian Ocean’s Leading Hotel Brand Banyan Tree Hotels & Resorts
Reunion Island’s Leading Hotel Les Villas Du Lagoon Resort Hotel
Indian Ocean’s Leading Family Resort Voile d'Or Resort & Spa, Mauritius
Seychelles’ Leading Hotel Le Meridien Fisherman’s Cove .
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Indian Ocean’s Leading Resort Coco Palm Resort & Spa, Maldives
Seychelles’ Leading Resort Le Meridien Fisherman’s Cove
Indian Ocean’s Leading Spa Resort Soneva Fushi Resort & Spa, Maldives
Seychelles’ Leading Spa Resort Banyan Tree Seychelles
HOSPITALITY MALDIVES DECEMBER 2005
PRESS
Maldives - The Heaven for Honeymoon - It is not Expensive That You Thought Sunday, 13 November 2005 Sun, sand and sea, a thousand Robinson Crusoe islands, massive lagoons with different depths and infinite shades of blue and turquoise, dazzling underwater coral gardens; a perfect natural combination for the ideal tropical holiday destination. However there is more to the Maldives than just that. Male would certainly count as one of the smallest capitals in the world in terms of its physical size. A third of the country population, about 75,000 live in Male. Different from any other island in the country, Male is a city of high-rise buildings and paved roads. Not only do you discover aspects of the planet denied to most people, but you make a lot of good friends as well! The Maldives is famed for its rare underwater beauty. The profusion of psychedelic colours and the abundance and variety of life underwater have fascinated divers and snorkellers since Maldives was discovered as a diving destination. The highest level of visibility that one could expect- sometimes exceeding 50 metres - and warm temperatures throughout the year makes diving in the Maldives a delight you would want to experience over and over again. HotelsGuru.com provides the special rates starting from 85 USD, it is quite rarely find this rates due to Maldives resorts are uniqueness and also wonderful for honeymoon. The room availability in Maldives is very important for travellers because there are limited number of rooms and acoomodations. You have to make the advance booking for this destination. You can ask for more information about Maldives and Resorts in Maldives, visit www.hotelsguru.com (Source: UCW Entertainment Newswire, www.ucwe.com)
Hidden Gems of the Indian Ocean: Maldives and Seychelles November 10, 2005 The island nations of the Maldives and Seychelles have to a large extent remained unexplored by American travelers, but have long been the playgrounds of Europeans seeking idyllic beaches, tranquil lagoons, sensational swimming, snorkeling, scuba diving, surfing (on the Maldives) and spas. Ease of access is an issue that may have affected visitation by Americans, as direct flights to these regions do not exist from the U.S., whereas from various European cities, flights are quite regular. Price wise, you will also find that it is far more affordable to travel via Europe or the Gulf region. With the opening up of long-haul flights to Asia from the U.S. east coast, in particular Singapore, access to the Maldives is becoming a lot easier (although not particularly cheaper) and likewise, direct flights to the Persian Gulf (Dubai), makes the Seychelles one-step closer. Their very isolation from the lucrative U.S. market has in some ways contributed to these islands remaining largely unspoiled with limited development and fewer tourist numbers. Both the Seychelles and the Maldives boast pristine white sandy beaches, palm tree oases with tropical climate, small islands with luxurious world-class resorts, many featuring all-inclusive packages, especially on the exclusive smaller outer islands. [...] (Source: www.frommers.com, by Charis Atlas Heelan)
Maldives: Where real life meets Paradise Monday, October 31, 2005 Like drops of emeralds scattered across an aquamarine backdrop, situated on the most traveled ocean of the ancient world, the tiny island nation of the Maldives is a treasure trove of a unique collection of idyllic palm-fringed islands, ringed by unspoiled reefs, teaming with a kaleidoscope of ever-changing colors, patterns, shapes and textures that never fails to fascinate beneath the surface. The Maldivian tourism industry has progressed a long way during its thirty years of existence and its popularity as an exclusive tourist destination is increasing both in its major generating markets in Europe as well as in new markets from around the globe. The Maldives continues to be distinguished for the sustainable and ecologic development of its tourism industry, high quality standard and secludedness of its position in the Indian Ocean, far away from the world’s problems. With your first look the islands are hardly differ from each other - apart from their size: tropical vegetation with palms, mangroves, Scaevola, Frangipani or Hibiscus bushes, powder-white sandy beach, surrounding turquoise-blue seas. In fact the versatility of Maldives is in the detail, because of the “one island-one resort concept“ each resort is on an island of its own and the resorts in Maldives offer a broad spectrum with respect to conception, architecture, style and comfort. To plan a vacation in the Maldives, you must be well informed about your own interests and ideas in order to find the matching island under the vast list of possibilities. (Source: www.traveldailynews.com)
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Last Words Letters to the Editor
In future issues, this column will feature readers’ feedback, comments and general letters to the editor. Following is a selection of feedback we received in response to the first issue of “Hospitality Maldives”:
“Thank you! Everyone at Kaimoo would like to congratulate you to your very wonderful first edition. Both, soft and hard copy just brilliant.” Manih Ahmed, Managing Director, Kaimoo Travels & Hotel Services Pvt. Ltd. “I just wanted to write and say thank you for your time and effort that you must have spent preparing this magazine, it is fab! I don’t think I have stopped talking about it and I can’t wait for the next issue. It has given me a great motivation to get the plans and training I wanted to start and also ideas on how to improve them.” Rachael Littlewood, Activity Manager, White Sands Resort & Spa “It is a great magazine and it would be good also to include advertisements.” Sharon Panesar, Human Resources Manager, One & Only Reethi Rah “Congratulations for the first issue of Hospitality Maldives. I am glad that someone has taken the initiative to publish a magazine of this nature. [...] The articles of well known industry personalities were indeed very useful and very knowledgeable.” Mariyam Noordeen, Dean, Faculty of Hospitality and Tourism Studies, MCHE “Very valuable infos, an excellent idea. You have made it a reality.” Ahmed Didi, Director, Focus Computers Pvt. Ltd. “Congratulations, really a good idea! Good luck.” Max Molteni, Manager, Holserv Pvt. Ltd. “It was indeed a pleasure to have received a copy of Hospitality Maldives. I have seen many hospitality related magazines appear and disappear in the past and hope your magazine will contribute to the industry on a long term basis.” Ismail Hilmy, Managing Director, Eastinvest Pvt. Ltd. “I love this magazine, it’s very fruitful!” Hassan Ali, Diving Teacher, Mirhi Island Resort “I just got your first issue. Thanks. The content of the book is good and I think it will be better and necessary to have more articles related to Maldives Tourism in future issues. Its a good thing you started and keep up your good work. I wish all the best and look forward receiving ‘Hospitality Maldives’ magazines.” Ahmed Rasheed, Food & Beverage Manager, Nasandhura Palace Hotel “Congratulations for the excellent quality and for the useful information. Keep up the good work!” Ibrahim Saleem, Director of Operations, Ensis Cruise “At a glance, I found this magazine is utmost vital for all of us who are working in this industry. We have been waiting for a useful tool like this to improve our professional careers. [...]“ Zakariyya Easa, Acting Assistant Manager, Vakarufalhi Island Resort “Very interesting and useful articles - but mostly - something new and with a professional touch! Well done!” Barbara Elkaz, Reception Manager, One & Only Kanuhura “Having read (almost finished!) your first edition of 'Hospitality Maldives' I just wanted to say it is great to get something decent to read at last!!! Roll on your next issue!” Holly Wilson, Business Development Manager, Meeru Island Resort “This is very helpful!” Saman Pushpakumara, Chief Accountant, Royal Island Resort & Spa
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