Hospitality Maldives Issue 09 by Hospitality Maldives

HOSPITALITY

ISSUE # 9 / OCTOBER & NOVEMBER 2006

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T H E M A G A Z I N E F O R T H E H O T E L , T R AV E L A N D TO U R I S M I N D U S T RY I N T H E M A L D I V E S

Donâ&#x20AC;&#x2122;t Let Your Systems Drive Your Customers Crazy!

08 Ask What

Makes You Great

by Rick Hendrie

Bringing out the Best in People

by Chris Longstreet, CHA

Politics of Revenue Management

By Douglas Kennedy

40 The

Hotel Butler

by Prof. Steven Ferry

Employee Retention Strategies

by John R. Hendrie HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

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EDITOR’S NOTE

IMPRESSUM Publisher This magazine is created and published by: Beyond Hospitality Pvt. Ltd. G. Comrade Hiya, 1st floor Dhonadharaadha Hingun Male’ 20350 Republic of Maldives T: (960) 3344 657 F: (960) 3344 658 Editor-in-Chief Ahmed Saleem Managing Editor David Kotthoff david@hospitality-maldives.com Design, Layout & Photography Mooinc. Pvt. Ltd. info@mooinc.com Advertising Sales Manager Ali Muaz ads@hospitality-maldives.com Print Softwave Printing & Packaging Sri Lanka 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. Credits All articles / features are property of their respective authors / owners and have been provided with the great support of the following individuals and institutions: John Bowerman-Davies Margot Cairnes Jane-Michele Clark DPPEA Joe Dunbar Tony Eldred Prof. Steven Ferry Paul Finley Julie Garrow Eric Hahn John Hendrie Rick Hendrie Doug Hissong Ron Kaufman Keith Kefgen Douglas Kennedy Rich Kussin & Lynn Helmers Denise Moretti Kelley Robertson Chris Longstreet, CHA Susie Ross Neil Salerno, CHA Terry Wisner www.ehotelier.com www.youngentrepreneur.com

Dear friends and colleagues, Welcome to the 9th edition of Hospitality Maldives. Surveys. They are everywhere. You find them in newspapers, TV channels, websites, and radio stations. Whilst many solely follow the aim of broadening a business’s customer base and getting to know its clients better, surveys can be a great tool in answering very general but utmost important questions such as ‘What are we doing wrong?’ or ‘Where can we improve?’. When and where results are made public, they can further support an industry in making important decisions and in measuring performance and policies towards those of competitors. I believe there are many current issues within our industry that would make great subjects for nationwide surveys, however, for now I’d like to concentrate on two selected topics and seek your support and active participation for the same. Over the coming weeks I will conduct two surveys whose subjects I consider very important; one will be aimed at Human Resources Departments, the other at Chefs, F&B and Purchasing Managers. The respective subjects will be as following: Food Supplies, Quality and Storage Salaries, Training and Staff Turnover Participation in these surveys will be voluntary as a matter of course, however, the more hotels and resorts give their input, the more representative the outcome will be. I strongly believe that we can all learn from the results of such surveys and no one should be hesitant to express their opinions about the same. Naturally, both surveys will be conducted with absolute confidentiality and all essential results will be compiled in a public research paper. If you’d like to participate, which I hope you do, please visit http://www.hospitality-maldives.com/surveys/ to download the survey forms. Once completed, simply fax or email them back to me. I look forward to your feedback as usual and wish you HAPPY READING. Yours in hospitality,

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. Beyond Hospitality Pvt. Ltd. or any of its associates cannot be held responsible for the misuse of the information and intellectual property provided in this magazine. Opinions expressed in this magazine are those of the writers and not necessarily endorsed by the publisher.

David Kotthoff

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

CONTENTS

M A L D I V E S

EDITORS NOTE

LISTEN TO WHAT YOUR UNIFORMS ARE SAYING by Eric Hahn

TIPS FOR DELIVERING GREAT CUSTOMER SERVICE by Jane-Michele Clark

HOTEL/MOTEL WASTE REDUCTION: FACILITIES MANAGEMENT

FINANCIAL MANAGEMENT SERIES X HOW TO REDUCE COSTS

BRINING OUT THE BEST IN PEOPLE – PART 1 by Chris Longstreet, CHA

THE POLITICS OF REVENU MANAGEMENT by Douglas Kennedy

THE HOTEL BUTLER by Prof. Steven Ferry

GOOD EMPLOYEE RETENTION STRATEGIES CAN BREAK THE MYTH by John Hendrie

DON’T LET YOUR SYSTEMS DRIVE YOUR CUSTOMERS CRAZY by Ron Kaufman

THE IMPORTANCE OF AVOIDING CROSS-CONTAMINATION by Rich Kussin & Lynn Helmers

THE DANGERS OF BEING A HOST by Tony Eldred

LAST WORDS

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

SALES & MARKETING

Gobble-Up Your Competition

Start with the Basics, Add a Pinch of Research, and a Dash of Common-Sense by Neil Salerno, The Hotel Marketing Coach

chef, I am not, but I do know how to gobble-up the competition. One of the best ways to measure the sales success of your hotel is to compare your hotel’s results with that of your competition. In many ways, this is more realistic than simply comparing results with your sales budget or last year’s numbers. Many savvy companies now use competition-set comparisons to judge the true effectiveness of their marketing programs. Hopefully one day, comp-set comparisons will find their way into monthly operating statements. Many hotels attempt to operate in a vacuum, ignorant and impervious to everything happening around them. They set rates, determine amenities, create promotions, develop their web sites, and establish operating standards, all without knowing or caring what the competition is doing. This doesn’t make sense even if your property is performing well, slow suicide if it isn’t.

How Well Do You Know Your Competition? In the real world, consumers have a wide range of hotels to choose from. Experienced managers know that just having a great hotel is no guarantee of success. There are managers who sit back and wait for success to come; and those who go out and grab it. Smaller properties can play with the big boys. Smaller hotels need to borrow some techniques from chain institutions by first performing a simple competition analysis. There are many tools to do this, but my favorite is called a S.W.O.T report which compares your hotel’s Strengths, Weaknesses, Opportunities, and Threats. This report goes beyond the normal quantity and quality of rooms/rates and other physical attributes; it also includes a comparison of management styles, sales talent, operating limitations, web site popularity and productivity, and front desk staff. An honest appraisal of your hotel as compared to your competition will reveal and suggest many ways to improve your position in the marketplace. From the S.W.O.T. report, you will be able to define your comparative strengths and develop your recipe to exploit them. No evaluation can be complete without comparing financial results. I know of no better source of competition-set financial data than STR reports from Smith Travel Research. If you are fortunate enough to be in one of their participation areas, the STR report can give you an occupancy, average rate, and RevPar comparison with other hotels that compete with yours. Check STR out online; it could be the best marketing small investment you’ve ever made. No, I don’t receive compensation from STR; they are simply the best.

Revenue per Available Room (RevPar) We all know that comparisons of occupancy and average rate can be very confusing and deceptive; after-all, would you prefer to have 68% occupancy at a $125 ADR or 64% occupancy at a $138 ADR? Unless your competition has exactly the same number of rooms and rates, comparing occupancy is futile. ADR alone can

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

be very deceptive. This changed when some great minds gave us RevPar or revenue per available room, a perfect tool to compare revenue performance. RevPar gives us the ability to compare hotels of different sizes and varying average rates. Since revenue generated is the primary goal of every hotel, RevPar allows us to combine average rate with occupancy by measuring the amount of revenue generated per available room in the hotel. RevPar is also simple to compute; simply multiply your average rate times the occupancy percentage for that period; the result is the amount of revenue generated for each room available for sale.

Take Names and Kick Butts It’s important to assign a face and name to your competition; get specific. Too often, I hear managers refer to “the competition”, but have to sit down and think about which hotels they actually are and why. Generally, there are only one or two hotels that present the most serious threat to your ultimate success. Your hotel is probably on their lists as well. It always amazes me how many hoteliers have so little information about specific competitive hotels. Get to know them well; as well as you know your own. Unless your hotel completely dominates your competitive environment, one or two hotels in your competition set are preventing your hotel from fulfilling its full potential. From your new S.W.O.T. report and your new STR report, you can determine who they are and develop ways to take advantage of their weaknesses and your strengths. For those, who think this may be a little cold, you were probably not around during the intense “sales warfare” of the early 90’s. An intense competitive environment has always stimulated sales innovation. It benefits our industry.

Focus Your Team on Challenges not just Procedures As a rule, people can be very creative in dealing with the challenges to your top-line. In far too many cases, owners and managers present procedures and solutions instead of the challenges. Try empowering your team to solve the challenges presented in your market and let them create the procedures and solutions. Put aside all your prejudices and “knowledge” of the market and let them create new ways to capture business. You might be amazed by their innovation. I will never forget what happened at a hotel in Roanoke Virginia many years ago. Every summer for years, group business fell flat. The manager hired a sales director who knew little about the Roanoke market. After just a few months on the job, she booked more summer group business than this hotel had ever seen. The manager completely forgot to tell her to concentrate her efforts on the fall and winter because summers were very poor. Neil Salerno, CHME, CHA, The Hotel Marketing Coach, www.hotelmarketingcoach.com, NeilS@hotelmarketingcoach.com

SERVICE

The Two-Minute Rule

by Susie Ross

hat is the two-minute rule? Well, if you’re a server, you should know automatically what it is and, if you don’t, shame on you. The two-minute rule is the time you should allow your guests to have their food before you check back with them and make sure everything is great. Notice I didn’t say “ok” – I said “great!” That’s a topic for another newsletter. After two minutes, most guests will have had time to try their food and know whether or not it was prepared to their satisfaction. If it wasn’t, it becomes your opportunity to correct a mistake immediately and save your tip from dipping below the acceptable mark. One of the things that is most irritating to guests is needing their server and not being able to locate him. Other servers don’t seem to care that you’re looking around the restaurant for someone to offer another drink, refill beverages or just clear some plates. It becomes the classic “that’s not my table” syndrome. Another equally annoying situation is having the server hover over you, asking every five to ten minutes, “Is everything ok?” “Is everything still ok?” I can tell you that from personal experience I have wanted to throw my dish at servers who kept coming by and asking that question. It’s not necessary to keep asking that question! Your guests are trying to enjoy the dining experience and perhaps have a conversation with the other people at the table – not the server! The only time it’s ok to come by and repeat that two-minute rule is if there was a mistake and the server corrected it and needs to make sure the dish has indeed been prepared to the satisfaction of the guest. This brings up an issue that a reader recently pointed out to me, and that is the need for a sort of “silent summons” for the guest to give a waiter so as to avoid raising one’s hand or shouting out as if to a dog. There is a restaurant in Denver that has a system that is probably similar to the one suggested. This casual, cafeteria-style Mexican restaurant has little wooden stands on each table. Cleverly designed are flags attached to strings that guests can raise up to let the server of that station know that something is needed. The problem is obvious; servers may not be in their stations to know they are needed. They have to be present to see the flag! The other option could be an electronic device that signals the server wherever he/she may be. I propose that a well-trained service staff shouldn’t need any kind of “summons” system, either electronic or otherwise, to do their jobs properly. By definition, a server’s job is to be at the ready for guests.

“ …you may only have to observe and step in when necessary – silently. ” After your two-minute check-back, you need to use silent service, which is merely your presence and visibility in your station. That’s who you’re there for – the customer. Don’t ever forget that. If you’re present in your station, you may not even have to intervene; you may only have to observe and step in when necessary – silently. Believe me, your guests will appreciate it. Training and information is the key! Contact me, Susie, at Waiter Training, either by phone or email. My business number is (720) 203-4615, and web address is http://www.waiter-training. com. I have restaurant training manuals available for sale, as well as my book, “A Waiter’s Training,” for the individual server who wants to learn more about his/her career and improve on skills. Susie Ross has been involved in the hospitality industry for ten years. She has just written a definitive work on front of house customer service and techniques for waiters and waitresses. For more information about Susie’s book, “A Waiters Training,” her training manuals and training seminars please visit her at http://www.waiter-training.com or email her at susie@waiter-training.com. HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

HUMAN RESOURCES

Ask What Makes You Great

e will orient you to who we are — our heart, our soul, our goals, our vision, our dreams, so you can join us and not just work for us. You have the right to know our hopes, our dreams and our goals. Horst Schultze, former President & COO for Ritz Carlton addressing new employees as quoted from Harvard Business School Case Study revised 7/02 I believe that most business people, if given the chance, want to make their brand better and more competitive to achieve the twin goals of on-going & acceptable profit and life-long consumer loyalty. The realities of doing so are difficult. Many just don’t know how to get to that next level: creating a remarkable brand whose sum is greater than its constituent parts. What is a remarkable brand? It starts with absolute clarity about who you are and what you stand for. I call it ‘the sword in the sand’ — those few key values, animated by seminal life experiences that brought you to your business and get you up every day to return to the battle. As Mr. Shultze said to his new recruits, your associates (and by extension, your guests) have the right to know your ‘hopes, dreams and goals’.

How would your guest describe you? The second element is a profound understanding of your consumer’s expectations, with one caveat: there is no real value in using a consumer’s current expectations as a meaningful benchmark. Most people’s expectations are exceeded when they get fundamental services provided pleasantly or products served as ordered. That’s no standard that I’m interested in using. No, go deeper and ferret out what your consumer’s hopes are around the experience you provide and make that the baseline for standards measurement. You not only will see what it is you need to eliminate, but those elements and attributes you should celebrate. It gives an entirely different context from which you develop both your brand story and the practical processes needed to deliver it. Thirdly, you have to develop your story that not only describes the ideal guest experience, but also incorporates the animating force inherent in your true values and your consumer’s hopes.

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

by Rick Hendrie

The story becomes the trunk of your business tree and everything, I mean everything, else is derived from it. It includes how and with whom you do business, the ways you hire and train to the meaning you imbue in every moment of the consumer’s buying experience. It is a whole business system, whose soul is your story. Now, let me give you a handful of questions to ask yourself, if you wish to go on this journey to remarkable branding.

FIVE Remarkable Branding™ Questions ●

●

What is the single most important value you hold sacred in relation to your business? Can you associates tell you what that is? Does it motivate them to be remarkable? What do your guests like and what don’t they like about what you do and how you do it? How would you describe your business or concept to a stranger?

●

How would your guest describe you?

●

Your staff ?

How do you know if your customers are loyal, not just satisfied? There are a ton of other things to ask and understand, but just start there. The service economy is finished because consumer satisfaction is no longer a guarantee of intention to return and guest expectations are pegged to mediocrity. What will make you great is the excellence of your product and service. What will make you remarkable is the inexplicable combination of feeling and sublime unconscious associations guests make when they see you or think about you. That is contained in the part of the brain called the amygdala, entirely separate from the centers of logical and rationality and it is there that your greatness must reside. If you feel like sharing your insights with me (confidentiality assured) I’d be delighted to give you my feedback, free of charge. If not, let these questions be the springboard to remarkable-ness. Rick Hendrie is President & Chief Experience Officer of Remarkable Branding, Inc., a Cambridge MA based consultancy which helps create memorable brand experiences. For a complimentary newsletter go to www.remarkablebranding.com

FINANCE & ACCOUNTING

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

SERVICE

Tips for Delivering Great Customer Service by Jane-Michèle Clark

t almost goes without saying that good customer service is essential to sustaining any business. No matter how wonderful a job you do of attracting new customers, you won’t be profitable for long unless you have a solid customer retention strategy in place – and in action. It’s the actions that count – not what you say you’ll do, or what the policy says. People will remember what you or your employees have done – or not done. One of the key components of an effective retention strategy is exceptional customer service. Not just good service, but memorable service. Today, consumers’ expectations are higher than ever and companies that fail to deliver, risk losing market share.

Tips for Delivering Good Customer Service. 1. Treat me like a somebody. It’s been years since that Midas muffler commercial aired, but the “I’m a somebody” phrase can still be heard from time to time. Why? Because regular customers expect (and deserve) to be remembered. As one woman summed it up, “You don’t need to remember my name, or what I order, but do acknowledge that I’ve been there before.” One of the best examples I’ve ever seen of this is at my local coffee shop. One day I noticed that the young man behind the counter greeted some people by name and, even if he didn’t know their name, he knew what they usually ordered. As I waited for my tea (he’d already placed my ‘two milk on the side’ on the counter without me having said a word), I asked him why he said, “See you later” to some customers, “See you tomorrow” to others, yet always said, “Have a good week” to me. The smiling, friendly reply? “Because you only come in on Mondays and Fridays”. As I thanked him, I thought to myself, “Wow. He won’t be here long”. Unfortunately, I was right. 10 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

SERVICE

2. Be polite! Too frequently company representatives ask customers for file information without saying “Please” or even being polite. It is not acceptable for a service rep to simply bark out, “Account number?” And it is never acceptable for a service rep to insult a client. Six weeks ago there was a problem with my home internet account – which is with a phone carrier I have used my entire life (and, as you know, this kind of loyalty to a phone company is almost unheard of these days). In all that time, I have never been late with a bill payment to them. There is a long and ugly story here, but the short version is that a) the problem was on their end and b) before they realized where things had gone wrong, their rep was extremely rude. When I asked him to please change the way in which he was addressing me, he snarled, “Well whadya expect? If you’d pay your bills on time you wouldn’t have this problem.” I couldn’t believe what I was hearing. In fact, if I’d just read this account (instead of being on the receiving end), I wouldn’t have believed the story. What’s worse is that although the company later apologized, their senior management seemed to feel that this was not an isolated incident. A 2005 survey conducted by Schulich School of Business MBAs suggests that this kind of problem exists in over 30% of companies, and costs them hundreds of millions of dollars in lost customers (and revenues) each and every year. Don’t let your company end up one of these statistics.

“ …special gestures go a long way towards engendering customer loyalty… ” 3. Thank your customers – like you mean it. When your employees conclude a transaction, they should thank the customer with a smile and a sincere “thank you for … completed by whatever is appropriate for your business”. Too often, customers received a rushed and barely civil “Thanks-Have-a-nice-day-Next”. With large purchases, the verbal greeting should be followed up with a hand-written card – not just because it leads to increased referrals (which is does), but because it is the correct thing to do.

5. Do what you say you will... when you say you will. The expression “Under promise, over deliver” may have become somewhat hackneyed through over use, but is still germane. One of the quickest ways to lose customer confidence is to not follow-through, or to be late delivering a service or product, without notifying the customer in advance, determining whether or not the delay will impact the customer and providing an alternate solution in the interim if necessary. One of the best examples I ever experienced of a company doing it well happened with Toyota. There was a problem with my RAV4 and Toyota couldn’t repair it easily. I was driving a loaner, but had planned to go camping with my kids. It was our summer holiday and it had been planned for months. When Toyota couldn’t repair my vehicle in time, they rented an SUV for us to use – without me having to ask. I have since purchased another vehicle from this dealership and recommended it to 6 others who have purchased from them. Coincidence? I think not. 6. Surprise the customer from the time to time. When it is possible to provide an extra level of service, do so. Whether it’s an unexpected complimentary dessert in a restaurant, or an upgrade that has not been requested, these special gestures go a long way towards engendering customer loyalty and to winning you new customers. It has long been known that on average, a dissatisfied customer will tell 10 - 16 others, but people who have had an unexpectedly good experience also recount their stories. 7. Provide “full” service. When Successories sends out its framed prints, it includes the hooks and a small levelling device. There’s a remote control toy vendor near me who includes the batteries. “My” gas station dispenses free coffee with gas on weekday mornings. A drive-through drycleaner in northern Ontario opens early and hands you the morning paper with your order. Small things,yes. Greatly appreciated? No question. I spoke to each of my local retailers and learned that in each case, their sales – and profits – have enjoyed double digits increases since they introduced more comprehensive service. Think about what you can add to help make things easier for your customers. In some cases, by looking at what else it makes sense to sell, you can even add a new revenue stream while improving the perceived level of customer service provided.

Oh, and by the way, the word “Sure” is no way to respond when a customer thanks you. To many people in many parts of the world, this is dismissive and suggests you don’t care. The correct phrase is “You’re welcome”.

8. Mea Culpa. When you have made a mistake, admit it and set things straight. When customers have a complaint – listen, truly listen. Then apologize and take corrective action. In many instances, the very act of listening (without interrupting) can be enough to diffuse the situation and make the person feel worthy as a customer. Then ask the customer how they would like you to resolve the situation. In most instances, your client will come up with something reasonable – and often less costly than a solution you might have proposed.

4. Appearances do count! According got two independent pieces or research, nearly 90% of customers form an impression about how competent and reputable your company is based on what they see when they walk trough your doors.

9. Listen to your customers. Conduct your own surveys and get feedback on what they like and don’t like - and take corrective action as required. Let customers know that their business is appreciated and that their opinions are important to you.

Preserve me from auto-attendant hell. Customers are becoming increasingly annoyed and frustrated with having to sift through a multitude of options and press numerous buttons – only to be told that the desired service can only be obtained through the company’s website. Worse is when the auto-attendant uses voice recognition – but doesn’t ‘recognize’ your voice. People want to connect with human beings; they don’t want to listen to a long list of prompts. For hints on how to use auto-attendants effectively, please read “The top 5 new things people expect for good customer service” on our ReallyGreatInfo.com webiste.

None of these suggestions takes a lot of time or money to implement, yet they can pay dividends in increased customer satisfaction and retention. The key, though, is to ensuring that employees understand the importance of their front-line role and get good training and supervision. Jane-Michèle Clark is president of The Q Group (http://www.theQgroup.com), a marketing firm with a solid 30-year track record. She teaches MBA marketing, is a corporate trainer & speaker, business coach and 4-time nominee for Canadian Woman Entrepreneur of the Year. Jane-Michèle can be reached at jmc@reallygreatinfo.com or by calling 416-424-4233. HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 11

12 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

SALES & MARKETING

How to Lose the Sale, Quickly and Easily by Kelley Robertson

ere are five sure-fire ways to guarantee you will not get the sale; Focus on yourself. I recall meeting several salespeople from a variety of vendors regarding an initiative I was working on for a client. EVERY single person began their presentation by telling me about their company rather than learning about my needs and wants. I ended up being subjected to information that had little or no relevance to my situation, which meant that 20-30 minutes of my time was wasted in each interview. I understand the importance of providing some background information on your company at the beginning of your presentation but keep it brief. I personally don’t care how much your company is worth, how long you have been in business, or what projects you have recently completed. I want you to focus on my needs first.Demonstrate that you care about my particular situation or show that you are interested in learning more about my business needs and I will reward you with my full attention.

Don’t listen to me. When I worked in the corporate world I

gave countless salespeople information pertaining to my business requirements only to have them draft a proposal that did not take these needs into consideration. Don’t waste your prospect’s time asking questions if you are not going to listen to his responses. The best salespeople ask probing questions, take written notes, and clarify their understanding of the prospect’s needs at the conclusion of each meeting. This enables them to create a proposal that addresses the client’s specific concerns, issues and situation.

Make elaborate claims about your product/service.

don’t make them. I suggest that you think otherwise. The majority of people who sell a product or service fall prey to these mistakes on a regular basis. Here is a final example; When I was the manager of training for a large retail organization I was contacted by many sales trainers. One in particular, spoke at great length about the features of his program and how valuable it was because participants would learn how to effectively qualify customers. He told me that this workshop would teach people how to ask the right questions and listen to the answers. In turn, I would see a noticeable increase in sales. While I agreed with his concepts, I seriously doubted his ability to deliver. Why? He did not apply the concepts of his own workshop. In fact, he spent most of the allotted time talking rather than learning about my needs! If he didn’t practice what he preached, how could I be sure he would deliver? Pay more attention to your prospect’s needs and respect their time. Avoid these common mistakes and increase your sales.

I once had a salesperson claim that his product was completely unique from anything on the market. When I questioned what he meant, I discovered this “unique feature” was something that several other companies offered as well. This salesperson immediately lost any credibility he may have established and failed to close the sale. Do your research and learn what your competitors offer. Know how to position yourself differently without exaggerating or overstating your product or service.

Talk too much It continues to amaze me how many people

think that telling is selling. I have window shopped in a variety of stores and excellent salespeople understand the importance of silence and have learned to become comfortable with it. Unfortunately, too many people talk far too much. I recall listening to a salesperson ramble on at great length about a product I was genuinely interested in purchasing. Unfortunately, I couldn’t get a word in edgewise to tell him I wanted to buy it. In fact, when I told I wanted it, he tried talking me out of the sale by stating, “If you want some time to think about it, there’s no rush.” While I appreciated his low-pressure approach I couldn’t help but wonder how many sales he had lost in the past.

“ …I seriously doubted his ability to deliver. ”

Do not respect my time.Today’s business executives are ex-

tremely busy. In fact, I recently read that most decision-makers have just one hour of unscheduled time during a given week. When you are granted an appointment or are talking to someone over the telephone, respect their time constraints. Get to the point quickly and keep your presentation concise and brief. You may think these are pretty basic mistakes and you may believe you

Kelley Robertson, President of the Robertson Training Group, works with businesses to help them increase their sales and motivate their employees. He is also the author of “Stop, Ask & Listen – Proven sales techniques to turn browsers into buyers.” For information on his programs, visit his website at RobertsonTrainingGroup.com .

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 13

NEWS

Hospitality News

Courtesy Of Ehotelier.com

Indian Hotels Company Ltd. Partners With Eurocape in South Africa Indian Hotels Company Ltd. (ICHL) has announced a partnership with Eurocape, the developers of the US$137.9 million Mandela Rhodes Place, to develop Cape Town’s newest addition in luxury hotel rooms and residences. The first phase of Mandela Rhodes Place is due for completion by the end of 2006. It will include an array of restaurants, bars, winery, wellness centre, offices, gymnasium, swimming pool and a rooftop garden. The second phase of construction is scheduled for completion by the end of 2008 and will feature a 174-room five-star hotel and 20 private residences. The US$41.3 million hotel and residences development at Mandela Rhodes Place marks the company’s first major investment in South Africa, with two other hotels planned in Johannesburg and Durban as part of their Indian Ocean expansion plan. IHCL owns and operates 75 Taj Hotels Resorts and Palaces worldwide.

Taj Hotels Looks To Buy Boston’s Ritz-Carlton Hotel Don’t breathe a word of this. Because nobody’s supposed to know. But the Taj Group, a hotel conglomerate from India, is the super-secret suitor negotiating to buy Boston’s Ritz-Carlton hotel. The Indian luxury chain, which recently purchased The Pierre in NYC from the Four Seasons, reportedly is seeking similar properties in so-called ‘gateway’ U.S. cities to build a five-star hotel company under The Pierre flag. The Tajies currently own 57 hotels in 40 locations across India with an additional 18 international hotels around the globe. ‘We’re waiting,’ said one Ritz insider, ‘but there’s nothing definitive yet.’ As we told you weeks ago, the owners of the grand dame on Arlington Street, Millennium Partners, have been looking to unload the Ritz and employees have been told that the hotel may soon be under new management. Hotel spokesgal Caron LeBrun yesterday reiterated the party line saying she couldn’t comment on ‘rumors and speculation.’

Westin re-enters Singapore

Surge in Thailand Arrivals

Starwoods Westin brand will return to Singapore as part of City Developments Limited’s (CDL) “The Quayside Isle” project, which has been awarded to the developer by Sentosa Cove for its marina quayside site. The 320room hotel will be Singapore’s first five-star marina hotel. It will also mark the brand’s re-entry to the island-state since the Westin Hotel Singapore was rebranded Swissotel the Stamford in January 2002. In addition to the hotel, the project will also have speciality retail shops, restaurants, home office suites and luxury residences. The award is collectively worth S$255 million (US$161 million) and will enhance the leisure and entertainment amenities in southern Singapore. This neighbourhood includes Sentosa Island with its planned casino resort, HarbourFront, VivoCity, Singapore Cruise Centre, St James Power Station and Mount Faber.

The Association of Thai Travel Agents has reported that arrivals at Bangkok’s Don Muang Airport surged by 42% in the first five months of 2006. A total of 1,223,546 million passengers passed through the airport between January and May 2006, compared to 860,844 in the same period last year. China led the way, with 216,919 arrivals - a 102% increase over the same period last year, followed by Korea with 101,383 arrivals - up 68%. Japan came in third with 155,537 arrivals - a 34% increase. The UK was the biggest European market, generating 60,654 visitors - up 73% on last year’s figures. Germany, with 42,583 visitors (a 21% increase on 2005), was the second biggest European market. The Tourism Authority of Thailand targets 13.8 million foreign tourists and US20 billion receipts in 2006.

1 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

NEWS

Consultancy Role for Wolf Vierich and The Vitala Group

Vietnam, Cambodia, Laos To Join Hands In Tourism

Wolf Vierich, Chairman of the Vitala Group, and his Group Companies have been selected as consultants to Fort Dragon Hotel Management Company Ltd in the People’s Republic of China. Fort Dragon is currently the largest privately owned 5-star hotel operator and management company in China. Vitala Group’s duties will comprise advising on all matters relating to the hotel, tourism and leisure industries and in particular to further assist Fort Dragon with the administration of multiple hotel management contracts throughout the People’s Republic of China.

The Tourism Department of Ho Chi Minh City (HCM City), the Tourism Ministry of Cambodia and the Lao National Administration of Tourism have agreed to jointly organize International Travel Expo-Ho Chi Minh City 2007 (ITE-HCMC 2007), themed “Three countries, one destination”, in HCM City, said the Deputy Director of the Ministry at the closing ceremony of ITE-HCMC 2006. Expo 2007 will focus on three main issues: making a common kiosk of the three countries; organizing a seminar to introduce Indochina adventure tourism programs by land, sea and air; and publicizing the cultural values of the three countries. The three sides will report plans to their governments to hold the Expo in October 2007. For three days, ITE-HCMC 2006 attracted about 10,000 visitors, with over 1,000 meetings and business promotions among 71 international tourism agencies and 140 companies.

Rihiveli construction completed Construction has finally been completed at the Rihiveli Beach Resort in the Maldives, with the luxury resort now back in operations with an even greater offering of facilities and improved features than ever before. The resort now has additional units of two new triple-sharing bungalows that feature external shower bathrooms and a new duplex villa that can accommodate four persons. The island also now boasts a refurbished dive centre, a new windsurfing school and a new spa. The existing bungalows were also refurbished with new terraces and bathrooms, and features wooden floors and new decorations. And a chill-out corner cum bar is expected to be completed in September.

Hilton Plans A Boost For Seychelles Tourism The Seychelles’ hopes of luring more tourists has been given a boost by Hilton Hotels’ plans to manage a refurbished US$53 million resort. The company is now searching for a second location on the Indian Ocean islands. The international chain will manage the five-star Northolme Hotel on behalf of Maldivian investors Crown and Champa, who bought and renovated the property late in 2005. The Seychelles wants to boost tourism revenues which accounted for 43 per cent of the country’s foreign exchange last year by attracting visitors seeking top-end, luxury hotels.

Shangri-la Named Best Business Hotel Brand In Asiapacific By Business Traveller Asia-pacific Asia Pacific’s leading luxury hotel group, Shangri-La Hotels and Resorts, was today named the Best Business Hotel Brand in Asia-Pacific for the sixth consecutive year in the Business Traveller Asia-Pacific magazine’s readers’ poll. In addition, the Shangri-La Hotel, Singapore was voted Best Business Hotel in the World, Best Business Hotel in AsiaPacific and Best Business Hotel in Singapore. The Makati Shangri-La, Manila won Best Business Hotel in Manila and China World Hotel, Beijing won Best Business Hotel in Beijing. The poll was conducted among the magazine’s readership of frequent travellers based mainly in the Asia-Pacific region. Results were compiled by Taylor Nelson Sofres Hong Kong Limited and will be published in the October 2006 issue of Business Traveller Asia-Pacific. Hong Kong-based Shangri-La Hotels and Resorts, Asia Pacific’s leading luxury hotel group, currently manages 49 hotels under the five-star Shangri-La and four-star Traders brands, with a room inventory of over 23,000. The group has over 40 projects under development in Canada, mainland China, France, India, Japan, Macau, Malaysia, Maldives, Philippines, Qatar, Seychelles, Thailand, United Arab Emirates, United Kingdom and the United States. For more information and reservations, please contact a travel professional or access the website at www.shangrila.com. HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 1

16 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

MISCELLANEOUS

Perchance to Dream - the Guest Room of the Future [Is it Already Here?]

By John R. Hendrie, Hospitality Performance

nce upon a time, our Guest was thrilled with a good mattress, a clean bathroom, and access to a pool. Room amenities and design were not a loss leader, for your prices reflected a recoup of the costs, minimal, as they once were. Then, the evolution began, and you had to be quite clever to gain and retain that competitive edge, cost effectively. You witnessed the changes. A simple tub begat a Jacuzzi, siring the Spa. Cable television accelerated into Movies on Demand. Complimentary coffee in the Lobby morphed into a coffee maker, a fridge and a microwave in every room. Rigid hours for Room Service are now 24/7 with pizza. You participated in the “bedding wars”, extolling your beds, linens, furniture. For some, a budding Cottage Industry was born - anything that moves is for sale. The Guest Room has become the haven, the Business Center, the Crash Pad, the Love Lair, the extant home away from home. You are doing everything you can to make it special, safe and memorable. But, the evolution continues, as you try to exceed the expectations of the Baby Boomers and the GenX’ers and the forthcoming generations on the horizon. Remarkable Hospitality is a challenge! If you are not thinking about your lodging operation in the context of the future, you will not exist in that new world. Everything is changing too rapidly – your Guests, your business, your world. To be a pioneer is critical, and to move forward with advantage you must engage the following: •

your Guest

•

your own brilliance

•

your suppliers/purveyors to the industry

Your Guest wants their connectivity and pleasure in private and comfort in that amorphous domain we have so carefully created for them. They want it all, they want it now, and they want it their way! Your challenge is to marry a high level of service and product to technology, which is the driving force for this evolution. Ideally, you have a relationship with your Guest, and you have reliable mechanisms to assess your performance and to specifically capture what your Guest really desires for their experience in your operation. By the way, hand-written Comment Cards are not acceptable as you plot your future, for you have lost any real time response value. Do not underestimate the power and creativity of your own perspective, your management team and fellow associates. The challenge is that you need to take some time and think outside that four wall box. No excuses; you have all the time there is, and group exercises with no boundaries create energy, commitment and, surprisingly, some very fine ideas. Another ingredient is curiosity. If you are not well read and informed, you are operating in a vacuum (a Hooverite, gathering the detritus of the Past). So, now, believe you have some wonderful ideas, culled from your Guests and your own in-house resources. Some may sound

far-fetched (akin to man on the moon), while others appear sound, reasonable applications. This is where we can turn to our partners, the vendors and purveyors. They share in your success, and they can help you actualize the possibilities. What is already in the marketplace is extraordinary. Naturally, security, privacy and reliability are crucial. Some companies are “cutting edge” with their products and acumen. What follows is not an endorsement, merely an acknowledgement of the “future being now”. One company I have watched, GBCBlue, features an automated Personal E-Room Concierge system, which simply beats the band! Beyond regular PC usage for the Guest, there is a screen entry to share with Management their thoughts about the stay. As it is real time, Management also has an opportunity to demonstrate active service recovery for any shortcoming/ concern. The screen also has increased Room Service Revenue threefold, using appetizing pictures for all menu items. Additionally, there is wonderful opportunity to tout property amenities, activities and services, and make reservations and purchases – right there on the Room PC, real time, up close, interactive and personal. Guest pleasing, Management proceeds. WOW! As another example of the “future being now” pertains to the Green Movement and the very simple light bulb, which creates comfort and illumination, as we know. The Fresh BulbTM , developed by Auro Technical Consumer Products and introduced to the industry by Pineapple Hospitality, is a titanium dioxidecoated fluorescent light bulb that consumes one-fourth the wattage of a regular light bulb—cutting lighting costs by as much as 77 %. The coating reacts with the fluorescent lighting when the bulb is turned on, eliminating room odors within minutes. Another certifiable WOW. Just imagine – good lighting, reduced costs and a clean smelling room. Innovation and creativity spur societies forward, and businesses which embrace a better way, anticipate and project the needs and wants of the marketplace, and invest in the vigor of their people prosper. Hospitality is not usually in the forefront for change. However, the world stage and unchartered events all challenge our comfort zone. We simply cannot afford to be complacent. Our Guests and Visitors are far more demanding than in the past. Ladling out the same old, same old simply does not cut it! Hopefully, the business of the summer months has been encouraging, and we will take some time to assess what we have learned from our Guests, tap ourselves and our resources for new ideas, and partner with companies which support our business to advance new generations of thought and product. The Guest Room is the lab; this is where new products are created for the comfort, security and sensibility of our raison d’etre – the Guest. John Hendrie, is CEO of Hospitality Performance, Inc., a full-service hospitality consulting company. With a strong background in Hospitality, Human Resources, Organizational Effectiveness, and Communications, John has devoted his career to establishing Standards of Excellence across varied businesses. For more information, please visit www.hospitalityperformance.com HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 17

MISCELLANEOUS

Top 10 Quirkiest Hotels in the World

by ehotelier.com

ce hotel in Quebec freezes out competition. The top 10 quirkiest hotels was selected according to traveler popularity, and TripAdvisor editors.

6. Desert Rose: Al Maha Desert Resort, Dubai, United Arab Emirates Unique in its setting in the middle of the

ice chapel, theme suites, an ice bar, and an art gallery -- with ice sculptures, of course. Activities include cross-country skiing, ice fishing, archery, snowmobiling, snow tubing and even dogsled driving. As one TripAdvisor traveler described, “It’s like sleeping in a 5-star igloo.” The “icetablishment” is only open from January to April, just don’t forget your parka and long johns.

Dubai Desert, the Al Maha Desert Resort is an oasis with luxurious accommodations, including private pools and an authentic “Bedouin” encampment design. Activities that might be hard-to-find anywhere else include sand dune driving, falconry and camel trekking, and the panoramic views of the Hajar Mountains are a sight to be seen. Oryx and gazelles are known to come around the rooms at night and drink water from the private swimming pools. As one TripAdvisor traveler noted, “There are lots of wild oryx roaming the grounds, which is nice, but also a bit scary when they’re blocking the path to the room.”

2. Jail House Rock: Malmaison Oxford Castle, England, U.K. Everything about the Malmaison Oxford Castle is

7. Chief Light-Wallet: Wigwam Motel, Holbrook, Arizona Operating along the historic U.S. Route 66, the Wig-

3. Smooth Sailing: Imperial Boat House, Ko Samui, Thailand With 34 authentic teakwood rice barges converted

8. Caveman’s Delight: Yunak Evleri, Urgup, Turkey

1. Have an Ice Stay: Ice Hotel Quebec-Canada, Quebec, Canada Breathtaking hotel made of ice, features an

authentic enough to make you feel as if you are in the confines of an actual prison, but with better company. Can a jail hotel be romantic? According to one TripAdvisor traveler, “My husband and I decided to ‘honeymoon’ at the Malmaison Oxford Castle, feeling that this magnificent converted prison would make a grand setting to begin our ‘life sentence’ together. It certainly did not disappoint.” The first U.K. prison to be converted into a hotel, rest assured the property was renovated to ensure for more comfortable accommodations.

into land-locked luxury suites, the Imperial Boat House on the beach is nautical nirvana. The lavish outdoor pools are surrounded by a lush and lovely garden. As described by one TripAdvisor traveler, “The resort is really impressive -- beautiful landscaping and accents throughout.” A final touch-the remarkable beach-front, boat-shaped pool, features cannons -- no doubt, to keep the pirates at bay.

4. Entertainment Extravaganza: Fantasyland Hotel & Resort, Edmonton,Canada With over-the-top fixtures

and themed rooms, the Fantasyland Hotel and Resort is a shock to the senses. According to a TripAdvisor traveler, “It gives you the feeling that you’re somewhere totally different, and when it’s -30 C and there is tons of snow, this is the perfect escape.” Great for families, it boasts a 217,800 square-foot indoor water park, an indoor ice rink, indoor golf and you guessed it, indoor roller coaster ride. Why all the indoor activities? Remember this is Edmonton, not Ibiza.

5. Tree-Top Tableau: Ariau Amazon Towers Hotel, Manaus, Brazil Seventy feet up into the tree-tops of the

Amazon, the Ariau Amazon Towers Hotel features catwalks connecting the entire complex. Activities include a jungle walk, swimming with dolphins, a caiman hunt and even piranha fishing. The rooms are rustic, but in the opinion of one TripAdvisor traveler, “Wouldn’t some towering monstrosity of modern conveniences be somewhat incongruous in this setting?” Don’t be surprised to see a wide variety of flora and fauna in this authentic jungle environment, where it’s okay to hand-feed the monkeys and parrots.

18 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

wams are actually teepee-style, cement tents. The bargain motel features the authentic feel of a 50s desert town -- from the furniture, to the vintage cars in the parking lot, to the sounds of the old locomotive passing through town. The rates are also a blast from the past -- the average room costs about $45 a night. According to one TripAdvisor traveler, “By the way, the rate is for real ... the youngest son of the builder commented to me that they don’t make money operating the motel, they do it ‘as a sort of public service.’” Cash and credit only, wampum not accepted.

Carved out of a stunning mountain-side cliff, the honeycombed hotel includes six cave houses, with rooms connected by narrow, maze-like passageways and stone stairways (think Land of the Lost, without the creatures). Decorated in Ottoman style, Yunek Evleri provides private patios offering dramatic views of the Turkish Mesa. As described by one TripAdvisor traveler, “You are then whisked to this serene land with its 7th century caves, outdoor archeological museums, and the best baklava ever.”

9. Toro! Toro!: Quinta Real Zacatecas, Zacatecas, Mexico Built around a 17th century bullfighting ring, it’s no

longer operational, so leave the red cape at home. The Quinta Real Zacatecas incorporates the feel of “Old Mexico,” with its colonial architecture. Beautifully illuminated at night, the hotel also faces the city’s ancient arched aqueduct and the local village’s quaint shops complete the unique experience. Be sure to enjoy the comfy robes ... as one TripAdvisor traveler suggested, “Do yourself a favor and buy their robes to take home, I didn’t and I have regretted it for seven years now.”

10. Inn Vogue: Madonna Inn, San Luis Obispo, California Most often referred to as kitschy, perhaps the best description for the Madonna Inn comes from a recent TripAdvisor traveler, “It’s what happens when Barbie moves in with Barney Rubble, all pink and rock.” But that’s part of the charm of the Madonna. A garish, chalet-style inn, the hotel features 45 rooms with varying themes and color schemes. To many travelers, an indescribably unique experience, perhaps the only thing you need to know is that there is a famous waterfall urinal in the men’s room.

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 19

Hotel Waste Reduction: Facilities Management 0 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

ENVIRONMENT

LIGHTING Lighting accounts for 30 - 40 percent of commercial electricity consumption. Lighting energy demand can be reduced through a combination of common sense conservation measures and use of energy-efficient lamps and fixtures, such as those described below. ● Fluorescent Lamps. Use energy-conserving compact fluorescent lamps (CFLs) instead of incandescent lamps for general lighting that stays lit more than four hours per day. ●

Lighted Exit Signs. Use low-wattage lamps in exit signs instead of the more common incandescent lamps. Lightemitting diodes (LEDs) are the most energyefficient option, but CFLs are still an improvement over incandescent lamps.

Although LEDs can cost over 50 percent more than low-wattage incandescent lamps, the payback period is less than one year and they last 10 times as long. The biggest savings come from annual energy costs: LEDs cost 85 percent less to operate than incandescent lamps. ● Motion Sensors or Timers. Install motion sensors or timers in meeting/conference rooms, linen closets, pantries, freezer units/storage areas and as outdoor lights; such lights can be set to go off after five to seven minutes of inactivity. Some ECO•LODGE•ICAL facilities have saved over 45 percent on annual energy costs using sensors in meetings rooms and storage areas. ●

property with 350 guest rooms can spend $300,000 per year on electricity, $50,000 on natural gas, and another $60,000 annually on water and sewer. Most properties have the potential to significantly reduce energy and water consumption without any impact on guest comfort. Simple management strategies like the ones presented here can reduce your utility bills by 30 percent or more while helping your facility become a better steward of the environment. Every watt of electricity that your property uses generates air pollution and hazardous waste. Every gallon of water depletes fresh water resources and generates waste water. On the other hand, every watt of electricity or gallon of water conserved saves money and conserves natural resources. The checklists below identify cost-effective activities that also conserve resources. If your property is not already conducting these activities, plan to incorporate them into your operations in the near future. In facilities management, conserving resources and saving money often go hand-in-hand. The following examples illustrate typical cost savings. ● Switching from an incandescent to a compact fluorescent lamp can save over $50 per year. ●

●

Replacing older, water-wasting showerheads with low-flow models can save over $3,600 per year. Installing low-flush toilet devices in older toilets can save over $5,800 per year.

●

Task Lighting. In common areas, direct lighting on areas that need greater illumination to avoid over-lighting whole area. For additional information on lamps and fixtures, including product-specific recommendations, contact the following organizations: EPA’s Energy Star Program has technologyspecific fact sheets, case studies, and analytical and financial tools. Call (202) 775-6650 or (800) STAR-YES or visit www.energystar. gov.

“ Some ECO•LODGE•ICAL facilities have saved over 45 percent on annual energy costs using sensors in meetings rooms and storage areas. ” ●

●

The National Lighting Product Information Program publishes technical reports and independent performance tests of brand name lighting products. To purchase these publications, fax the Lighting Research Center at (518) 2762999 or visit www.lrc.rpi.edu. The Electric Power Research Institute (EPRI) also offers technology-specific reports. To order, call the EPRI Publications Distribution Center at (510) 934-4212 or visit www.epri.com. HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 1

ENVIRONMENT

●

Equipment. Develop and implement a monthly cleaning and maintenance program for all equipment. This program should include calibrating ovens and checking pipes for leaks. Computerized Energy Management Systems. Larger facilities should consider installing direct digital control (DDC) systems to manage lighting and HVAC. These systems have three advantages over manual or pneumatic systems: they are more precise, less susceptible to defects in the control system, and more effective in identifying sources of problems. The greatest efficiencies are achieved using fan systems with variable speed drives.

MAINTENANCE AND HVAC A well-maintained property can save money, increase guest comfort, and even improve indoor air quality. Include the following activities in your maintenance schedule: ● Filters. Clean permanent filters every one or two months. ●

●

Leaks. Check HVAC (heating, ventilation and air conditioning) system and other equipment yearly for coolant and air leaks, clogs and obstructions of air intake and vents. Cooling and Heating. Don’t cool or heat more than necessary, especially in unoccupied areas.

●

Ground Cover. Plant ground cover that requires minimum maintenance and water.

Calculate Your Energy Savings from Fluorescent Lighting Replacing a 75 watt incandescent bulb with a 15 watt fluorescent saves over $50 per year. The example below illustrates how to calculate lighting energy savings in your facility. To calculate cost of a single light bulb: (wattage of bulb) ÷ (1,000) x (hours per days in use) x (365 days/year) x (cost per kilowatt hour) For example, the cost of a 75 watt bulb that burns 24 hours per day and cost 10 cents per kWh (kilowatthour) would be calculated as follows: (75 watts) ÷ (1,000) x (24 hours/day) x (365 days/ year) x ($.10/kWh) = $65.70 per year A 15 watt bulb used for the same purpose would cost

Sunlight. Cover west and south facing windows during the summer, and let sunlight in during the winter.

(15 watts) ÷ (1,000) x (24 hours/day) x (365 days/

Fugitive Heat. Position heat-producing appliances (such as TVs and lamps) away from room thermostats. One watt of air conditioning is required to offset the heat of one watt of light. Thus, energy-saving lamps reduce air conditioning costs watt-for-watt.

WATER CONSERVATION

●

Lawns. Restrict lawn watering to mornings, evenings or nights to decrease water loss from evaporation and maximize effectiveness. Use sensors that turn off water systems when it is raining. Better yet, use soaker hoses which “sweat” water from the hose and deliver it directly to plant roots.

Condensers. Clean air conditioner and refrigerator condensers at least every two years.

“ Clean permanent filters every one or two months.” ●

●

Low-Flow Faucets. Retrofit or replace shower heads with low-flow devices, and install faucet aerators on faucets. Lowflow shower heads can save a hotel 10 gallons of water for every five minute shower. That means saving over $3,600 annually if 100 people shower each day, and water and sewer costs are 1¢ per gallon. Low-Flow Toilet Devices. Install water conservation devices, such as toilet dams or flapper balls, in older, water-guzzling toilets. These devices can save four gallons or more per flush, translating into annual savings of over $5,800 if 100 guests flush four times per day. Full Loads. Operate clothes and dish washers only with full loads, and promptly repair all leaks. Wash Water. Wash clothes and linens in the coldest water that will do the job; hot water is usually only necessary for heavily soiled loads.

22 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

over $50 less: year) x ($.10/kWh) = $13.14 per year To calculate cost savings, simply subtract the cost of the 15 watt bulb from the cost of the 75 watt bulb. $65.70 - $13.14 = $52.56 per year

Conservation of energy and water can offer savings to properties of all sizes. The following examples illustrate cost-effective measures taken by small and large properties to benefit the environment. The Budget Host Inn in Kill Devil Hills, N.C., has 12 employees, 40 rooms, and has made a concerted effort to address environmental issues. Motivated by potential cost savings and a desire “to help the community to protect the environment,” Marion Peterson, manager, led the effort to manage her facility more efficiently. Starting in 1993, The Budget Host Inn began replacing incandescent lights with compact fluorescent lamps in guestrooms and common areas of the inn. The hotel also installed motion sensors in some public areas and low-flush toilets, faucet aerators and low-flow shower heads. On a larger scale, a California Radisson hotel reported a 6.5 percent decrease in monthly bills from installing water-saving shower heads, turning the hot water down slightly, and installing fluorescent lights. The facility saved $3,500 per month with minimal initial costs: $15 per shower head and a slight increase in light bulb expenditures. Similarly, the Grand Westin Hotel in Seattle, Wash., began saving $30,000 per month once it adopted an aggressive energy conservation program. This waste reduction fact sheet is one in a series produced by the N.C. Division of Pollution Prevention and Environmental Assistance (DPPEA) to assist the lodging industry and concerned professionals in efforts to reduce waste and enjoy the benefits of cost savings and a public image as environmentally responsible organizations

MISCELLANEOUS

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 23

NEWS

Financial Management Series X How to Reduce Costs

ncreasing profits through cost reduction must be based on the concept of an organized, planned program. Unless adequate records are maintained through a proper accounting system, there can be no basis for ascertaining and analyzing costs. Cost reduction is not simply attempting to slash any and all expenses unmethodically. The owner-manager must understand the nature of expenses and how expenses inter-relate with sales, inventories, cost of goods sold, gross profits, and net profits.

Cost reduction does not mean only the reduction of specific expenses. You can achieve greater profits through more efficient use of the expense dollar. Some of the ways you do this are by increasing the average sale per customer, by effectively using display space and thereby increasing sales volume per square foot, by getting a larger return for your advertising and sales promotion dollar, and by improving your internal methods and procedures. Profit is in danger when good merchandising and cost control do not go hand in hand. A big sales volume does not necessarily mean a big profit, as one retailer, Carl Jones, learned. Jones’s pride was stocking stylish and well assorted lines of merchandise. Each year, sales volume increased. This increase was attributed to good merchandise which Jones felt took care of the steady rise in expenses. But Mr. Jones began to have doubts when he found it necessary to get bank loans more often than had been his practice. When he discussed the problem with his banker, Jones was advised to check expenses. As the banker said, “A large and increasing sales volume often creates the appearance of prosperity while behind-the-scene expenses are eating up the profit.”

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

FINANCE & ACCOUNTING

Paying The Right Price Your goal should be to pay the right price for prosperity. Determining that price for your operation goes beyond knowing what your expenses are. Reducing expenses to increase profit requires you to obtain the most efficient use of the expense dollar. Look, for example, at the payroll expense. Salesclerks are paid to sell goods, and their productivity is the key to reducing the payroll cost. If you train a salesclerk to make multiple sales at higher unit prices, you increase productivity and your profits without adding dollars to your payroll expenses. Or, if four salesclerks can be trained to sell the amount previously sold by seven, the payroll can be cut by three persons. An understanding of the worth of each expense item comes from experience and an analysis of records. Adequate records tell what has happened. Their analysis provide facts which can help you set realistic goals, you are paying the right price for your store’s prosperity.

Analyze Your Expenses Sometimes you cannot cut an increase item. But you can get more from it and thus increase your profits. In analyzing your expenses, you should use percentages rather than actual dollar amounts. For example, if you increase sales and keep the dollar amount of an expense the same, you have decreased that expense as a percentage of sales. When you decrease your cost percentage, you increase your percentage of profit. On the other hand, if your sales volume remains the same, you can increase the percentage of profit by reducing a specific item of expense. Your goal, of course, is to do both: to decrease specific expenses and increase their productive worth at the same time. Before you can determine whether cutting expenses will increase profits, you need information about your operation. This information can be obtained only if you have an adequate recordkeeping system. Such records will provide the figures to prepare a profit and loss statement (preferably monthly for most retail businesses), a budget, break-even calculations, and evaluations of your operating ratios compared with those of similar types of business.

Break-even A useful method for making expense comparisons is break-even analysis. Break-even is the point at which gross profit equals expenses. In a business year, it is the time at which your sales volume has become sufficient to enable your over-all operation to start showing a profit. Once your sales volume reached the break-even point, your fixed expenses are covered. Beyond the break-even point, every dollar of sales should earn you an equivalent additional profit percentage. It is important to remember that once sales pass the breakeven point, the fixed expenses percentage goes down as the sales volume goes up. Also the operating profit percentage increases at the same rate as the percentage rate for fixed expenses decreases - provided, of course, that variable expenses are kept in line.

Locating Reducible Expenses Your profit and loss (or income) statement provides a summary of expense information and is the focal point in locating expenses that can be cut. Therefore, the information should be as current as possible. As a report of what has already been spent, a P

and L statement alerts you to expense items that bear watching in the present business period. If you get a P and L statement only at the end of the year, you should consider having one prepared more often. At the end of each quarter might be often enough for some firms. Ideally, you can get the most recent information from a monthly P and L. Regardless of the frequency, for the most information two P and L statements should be prepared. One statement should report the sales, expenses, profits and/or loss of your operations cumulatively for the current business year to date. The other should report on the same items for the last complete month or quarter. Each of the statements should also carry the following information: 1. this year’s figures and each item as a percentage of sales. 2. last year’s figures and the percentages. 3. the difference between last year and this year - over or under. 4. budgeted figures and the respective percentages. 5. the difference between this year and the budgeted figures over and under. 6. average percentages for your line of business (industry operating ratio) when available, and 7. the difference between your annual percentages and the industry ratios - under or over. This information allows you to locate expense variation in three ways: (1) by comparing this year to last year, (2) by comparing expenses to your own budgeted figures, and (3) by comparing your percentages to the operating ratios for your line of business. The important basis for comparison is the percentage figure. It represents a common denominator for all three methods. When you have indicated the percentage variations, you should then study the dollar amounts to determine what line of operative action is needed.

“…determine whether cutting expenses will increase profits,…” Because your cost cutting will come largely form variable expenses, you should make sure that they are flagged on your P and L statements. Variable expenses are those which fluctuate with the increase or decrease of sales volume. Some of them are: advertising, delivery, wrapping supplies, sales salaries, commissions, and payroll taxes. Fixed expenses are those which stay the same regardless of sales volume. Among them are: your salary, salaries for permanent non-selling employees (for example, the bookkeeper), depreciation, rent, and utilities.

Taking Action When you have located a problem expense area, the next step obviously is to reduce that cost so as to increase your profit. A key to the effectiveness of your cost-cutting action is the worth of the various expenditures. As long as you know the worth of your expenditures, you can profit by making small improvements in expenses. Keep an open eye and an open mind. It is better to do a spot analysis once a month than to wait several months and then do a detailed study. Take action as soon as possible. You can refine your cost-cutting action as you go along. Reprinted with permission of www.youngentrepreneur.com HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 25

26 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

FOOD & BEVERAGE

The Food Cost Percentage - Decomposed

oo much attention is placed on inventory accuracy. Most people miss the finer points of determining their food cost percentage. Clearly, the sales figure which dominates the formula should take center stage. A very close second is the purchases figure. The inventory obsessed need to take a different view. Many hotels and restaurants count monthly (or every four weeks) and I see too much emphasis on inventory valuation. The impact of inventory change depends on the time period. Monthly values should be reasonable given the day of week and time of year. The change in the inventory value (i.e. beginning minus ending) hardly matters once a period of 90 days is considered. Inventory is very important in a weekly analysis and all important in a daily calculation. If you’re researching a problem and perform daily calculations you need to be very exact. The wonderful POS systems available today from the best companies provide a bundle of sales analysis. My favorites are check average and covers by meal period. I break down sales using a simple matrix with a row for each meal period and columns for covers, check average and sales. On the purchases side, I break down the purchase data using a larger matrix with rows for each key item and grouped data for low impact items by category. The columns include units, average cost and total cost. For the inventory, I prefer a simple inventory change figure. One number is fine. Simply subtract the current period’s value from the previous period’s value. The net value should be a reasonable and consistent estimate. Don’t count WIP inventory one period and eliminate the figure the next period. Some quick checks on inventory value by location and category will provide enough information to locate the flour extended by case price when the count team used pounds. Perform a simple analytical review and correct major errors.

by Joe Dunbar

Many operators give no credit for highly perishable items like bread, fresh fish and other items specific to the operation. This helps to avoid over buying since the items are expensed immediately. Inventory valuation should not be the reason for a good or bad food cost percentage in any given period. Any operation which runs a hi-low pattern or a low-low-hi pattern has a far greater problem. These patterns typically point out cost control weaknesses. Someone is trying to hide the truth. I have seen plenty of inventory extensions with a spice valued at $1,000 plus. The people presenting these reports may be both incompetent and dishonest.

“ The net value should be a reasonable…” Look long and hard at sales trends by meal period. Some operations run lunch menus with higher implicit costs. If the lunch/ dinner ratio changes, the food cost will be impacted. Extremely high or low counts will have a major impact as well. Most of the real action will be in purchases since the money you spend with your suppliers is your cost. Highlight dramatic price changes on any key item. Look for flaws in your ordering strategy. Compare figures from one period to the next and over the long term. If you focus on sales and purchases, food cost percentage surprises will be fewer and more positive. Joe Dunbar Dunbar Associates 11350 Random Hills Road Suite 800 Fairfax, VA 22030 800-949-3295 jdunbar401@aol.com http://foodcostcontrol.blogspot. com HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 27

SPA

How to Use Spa Industry Statistics as a Business Tool Why Spa Businesses Need Spa Industry Statistics

by Julie Garrow, Managing Director of Intelligent Spas

ike any other small, medium or large business, it is imperative that analysis and planning activities be conducted to minimise the risk of failure. One of the first questions to ask yourself is “how is my business doing?” and this can easily be answered by comparing your spa’s performance against industry averages. The overall industry average for your country is a useful guideline, however where the survey response rates are high enough, industry averages may be broken down further to enable more accurate analysis by calculating, for example, industry averages for your particular type of spa and industry averages for your spa’s specific location. Unique and common facilities and service offerings may also be measured and analysed to assist the planning for the business’ future. Consider: At what point does a facility or service offering change from a consumer novelty to a consumer expectation? If for example, a high proportion of spas offer a relaxation room, one may assume as spa consumers become more experienced, they may come to expect a relaxing area within a spa and be disappointed if they do not have the opportunity to enjoy that type of facility before and/or after their spa treatment.

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SPA

Spa businesses that do not offer a relaxation area may decide to redesign their space to incorporate a relaxation area, aiming to increase and maintain competitiveness, retain existing clients and attract new clients. From the industry perspective, if a small proportion of spas offer a facility or service, is it a unique differentiator which they may promote to attract more visitors? For example, if only 7% of spas offer a plunge pool, do they have a competitive advantage? Could your spa business benefit from introducing new facilities or services that are currently not very common in your market place? In order to attract visitors, it is critical spa businesses offer facilities, treatments, services and products which consumers expect and prefer. Study the industry benchmarks to fill in gaps in the spa’s offerings and ensure spa menus, other printed collateral and web sites effectively promote all of the offerings so the spa does not fail a “paper” or “internet-based” evaluation by potential clients. Another purpose for industry research is to identify new industry trends, which you may choose to, or not to, adopt, depending on the business opportunity for your spa business. The trend must comply with the vision, concept and brand image of your spa, so for example, you may choose not to address the trend of “more males visiting spas”, instead specialising in women’s issues and related therapies to create a higher level of expertise and reputation for such services, in comparison to your competitors who may target both female and male clients.

analysis and planning activities and it is very challenging for these organisations to commit to the spa industry without supporting information. For example: ● Suppliers - design and develop relevant products and equipment to support spa business; ● Financial institutions - approve loans for new spa businesses or expansion of existing spa businesses to realise business visions; ● Associations - rally government and suppliers for industry incentives and group discounts to minimise spa business costs; and ● Tourism authorities - allocate funds for spa industry marketing and awareness campaigns to increase spa visits.

The Connection Between Spas and Tourism Domestic and international tourism statistics are included to illustrate the volume of travellers and the incremental spa visits which may be possible by effectively using relevant channels to promote spa services and spa products. Destination spas are close to tourists, given their integration with accommodation facilities, and have a great opportunity to maximise spa visits. Day spas may also tap into this market segment through cooperative marketing campaigns with nearby hotels (Source: Intelligent Spas, Spa Integration for Hotels, Resorts, Serviced Apartments and Similar Facilities).

“ …existing businesses can act to retain existing clients by ensuring service standards are high and their offerings are effective and relevant to their clients’ needs. ” New spa developments may also use the industry statistics to assist the concept design and planning of a new business. This is often seen as a negative for existing survey participants, however the availability of industry statistics may actually benefit existing businesses as new entrants easily identify where the market is currently, or potentially saturated, and choose a different concept and path by offering alternative services. This also benefits the new entrant by offering complementary services, rather than the same services, and attempting to displace clients from existing spas. Any new entrant into the market may be challenging, however existing businesses can act to retain existing clients by ensuring service standards are high and their offerings are effective and relevant to their clients’ needs.

Julie Garrow, Managing Director of Intelligent Spas represented three of the big four global tourism, leisure and hospitality consulting firms in Australia and Singapore between 1992 and 2001 and draws on over seventeen years research experience from both industry and consulting perspectives.

Intelligent Spas is an independent research company specializing in the spa industry. Founded in Singapore in 2001, it has pioneered spa industry research in the Asia Pacific region and continues to publish a range of Spa Business & Operations Manuals, Spa Consumer Surveys and Spa Industry Surveys to assist the development and growth of this niche industry. Intelligent Spas provides research which businesses find logistically and financially impossible to collect.

Independence Defined... Intelligent Spas is unique as it offers a completely independent view of the spa industry. All our research is self-funded and Intelligent Spas: 1. Does not conduct consulting studies for individual businesses; 2. Does not form alliances with third parties;

Why Suppliers, Financial Institutions, Associations, Tourism Authorities and Other Related Organisations Need Spa Industry Statistics

3. Does not have interests in other businesses; and

Over recent years, there has been a lot of hype about the spa industry which has generally been positive for spa businesses in terms of generating visits. However the downside of hype without accurate facts is that suppliers, financial institutions, associations, tourism authorities and related organisations cannot support the industry effectively. Industry statistics give these related organisations the necessary inputs for their own business

This independence policy ensures the confidentiality of all individual survey responses submitted is maintained, and publications are prepared without bias and for the benefit of all members of the spa industry.

4. Is not influenced by members, committees or sponsors.

For more information, please visit www.intelligentspas.com HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 29

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HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 31

FINANCE & ACCOUNTING

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HUMAN RESOURCES

Bringing Out the Best in People [Part 1] by Chris Longstreet, CHA

ecently, we moved our SHM office, and, during the process I came across a book I read in college that I promised I would never throw away or get rid of. The book is entitled Bringing Out the Best in People:

Housekeepers will clean rooms to the cleanliness levels you set.

How to Enjoy Helping Others Excel by Dr. Alan Loy McGinnis.

Unfortunately, when people become managers or leaders within an organization, they immediately feel like a police officer and must watch every employee move to make sure standards are being met. This watchdog role is looking for failure and creates an adversarial relationship between management and line employees. Good managers, on the other hand, look for the strengths in employees and discover ways to encourage the skills and abilities of each person. If we expect good things from our employees, in most cases they take great strides in meeting those expectations. If we expect the worse, they will meet those expectations and continue to disappoint us with their performance.

“Have you ever wondered at the way certain people bring out the best in others? They seem to know how to get an extra effort from the people they lead. We have all known them – some are teachers or heads of companies, others are baseball managers or mothers. Frequently without good looks or extraordinary intelligence, they seem to possess a knack for inspiring people. And this remarkable skill at the art of motivation makes them highly successful at almost everything they do.” Look back over your career. Who motivated you? Who brought out the best in you? Which managers, which leaders, seemed to bring out the best in the people they served? In his book, Dr. McGinnis outlines twelve rules for bringing out the best in people. These principles can be applied to any team you lead: the front desk, the sales department, housekeeping, servers, the kitchen, or even the management team of your hotel or restaurant. These skills are valuable in creating a motivational environment where your employees want to work and feel the can contribute to the success of your organization. In part one of this three-part article, we look at the first four rules and how we can apply them to the environments in which we work.

Rule 1 - Expect The Best From the People You Lead In the musical My Fair Lady, Eliza Doolittle is transformed from an uneducated woman to a sophisticated lady. One of the famous lines of the play, Goethe makes a bold statement about human nature: “Treat a man as he appears to be and you make him worse. But treat a man as if he already were what he potentially could be, and you make him what he should be.”

Servers will up-sell menu items because you set the standards and expectations high. Positive expectations can yield positive results.

Rule 2 – Make a Thorough Study of the Other Person’s Needs One of the more enjoyable parts of teaching at the college level is working with students and helping them discover what excites them about the hospitality industry. When a student makes a true connection with their passion for what they want to do, it is easy to push them to succeed. Their interest level is higher when studying as they develop a passion for what they are studying. The fear of pleasing other people, like parents, disappears and the passion for discovering success becomes so clearly apparent. Whether it be working for a baseball park in the minor leagues, becoming a leader in the housekeeping department, or working toward a vision of owning a restaurant or club, discovering what a student wants makes the educational experience far more motivating for both the student and the instructor.

“ The fear of pleasing other people, like parents, disappears and the passion for discovering success becomes so clearly apparent. ”

Do you expect the best from the people you lead? Or do you settle for what they give you and find other solutions to improving the service provided to your guests and patrons? In the hospitality classes I teach, we discuss motivational theories and strategies. One theory, the Pygmalion Effect, states that the expectations your employees have of themselves determines how they will perform. If we expect great things as managers, great things will happen. If we accept and expect average performance, average performance is what we will get. By emphasizing the positives and what employees can do, employees will believe in themselves and perform at higher levels. To do this, we must communicate our belief in their skills and abilities. Setting high performance and quality standards and communicating to your team so that they can achieve them will yield positive results.

McGinnis says, “Too many leaders ignore this essential early step. They see motivation as mere hype – slapping people on the back and giving rah-rah pep talks. But it is more than hype. A good motivational plan must be as carefully fitted as a designer dress. We must ask a lot of questions about where people have been and where they are going, what they believe, what are their sore spots, what they love and what they hate. In other words, we must make an inquiry into people’s present need systems.”Motivation is therefore situational. It is unique to each person. Sarah, a server, has a different set of needs than Darren, the line cook. Tamyra, the housekeeper, is motivated differently than Gerard, the maintenance engineer. What motivates you is different than what motivates the employees you lead or the person you report to. HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 33

HUMAN RESOURCES

How do we study these needs in the work place? We talk to our employees. We ask questions during performance reviews and interviews that give us a clue as to what our employees feel, believe, and value. We sit at breaks and listen. We ask questions. We seek information. We talk and get to know our employees. We have staff meetings where people have a chance to voice ideas and opinions. By doing this, we can more clearly identify individual needs and use them in creating a motivational environment for them to work in. Motivation is more than hype – more than just pulling a rabbit out of a hat

Rule 3 – Establish High Standards of Excellence “So far,” says McGinnis, “I have been saying that the best way to bring out the best in people is to treat them in a positive, encouraging manner, capitalize on their gifts, and begin with their present needs and desires. But that does not mean that the good motivator is soft. To the contrary, most highly motivating leaders are hard as nails on standards of excellence. They hold to certain values tenaciously, and they set out to build a group of like-minded persons who share those values.” The best-run restaurants, the best-run hotels, the best-run food service facilities allow for individuality in their teams while enforcing certain standards. It is important that restaurants and hotels set standards and enforce them. While working for a family-style restaurant in college, I worked for a company that had very few standards. Each manager did what they thought was right. I worked hard to make sure that the dining room was set the same way each night I closed so the opening team would see the difference.

“ A chain of 14 restaurants failed, in part, because there were no standards for managers to follow and employees to work towards. ” Employees thought I was making them do extra work. The problem was that no other managers were setting the same standards that I was using. Today, this company no longer exists. A chain of 14 restaurants failed, in part, because there were no standards for managers to follow and employees to work towards. Employees like to have clear-cut objectives that are attainable. We can’t as managers set out standards so high that our employees can’t achieve them or are always falling short. People want to have their skills and abilities challenged and tested – stretched, so to speak – but they must have regular successes to feel that their efforts are valued. McGinnis concludes this rule by communicating an important lesson: “In pressing for excellence, we must be careful to have goals that are both challenging and realistic, and we must devise a graded progression of objectives so that our people can enjoy the regular feedback of success.” 34 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

Rule 4 – Create An Environment Where Failure is Not Fatal People handle failure in different ways. Failure, in some cases, is motivational and ignites a fire within to learn and not repeat mistakes. Others, however, start with such great energy only to have the motivational fire extinguished after one failure or miscue. What we want in our organizations are people who, when they stumble, pick themselves up, learn from their mistakes, and move on to finishing the task at hand. If we as managers in the hospitality industry can help our employees handle failure effectively, we will create an environment that is motivating and encourages high performance. A student who worked at a theme park one summer told me how one of the worst managers he worked for followed him around and regularly pointed out all the faults in the performance of his job duties. Many times he heard the phrase, “If you don’t get it right, I’m firing you!” Managers are faced with a unique challenge: creating high expectations and expecting high performance while still tolerating failure at times. Harshly criticizing a new employee for not performing a task correctly will only create a feeling of defeat and discouragement. Effective managers use whatever tactics are necessary to help employees identify the failure, what the cause is, learning from the mistake, and moving on to a higher level of performance. At times, we may need to cheer them on to try harder. Other times we may have to simply push them back into a position forcing them to start over and create a series of successes that will instill confidence.

Conclusion Do you: 1. Expect the best from your employees and those you lead? 2. Understand the needs of your employees and use this information to create an environment that builds their motivation? 3. Establish standards of excellence that are attainable for your employees and those you lead? 4. Create an environment where failure isn’t fatal? Evaluate your own performance in these areas. Next week, we will continue with the rules for bringing out the best in people. Chris Longstreet is President & 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 hospitalitysociety.org or contact Chris at clongstreet@hospitalitysociety.org

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 35

FINANCE & ACCOUNTING

The Politics of Revenue Management

ow interesting it has been for seasoned hospitality executives to witness firsthand the emergence of the profession of revenue management, and simultaneously, the significant improvements in revenue per available room our industry has achieved these last 20 or so years. Yet as far as we have come as an industry, most revenue-management visionaries agree that we have so far actualized only a small percentage of industry’s potential benefit. Despite an up market, there is still far too much money being left on the table by hotels that have failed to actualize their revenue optimization potential. While it is true that overall most hotels do a good job at yielding their transient market segments and are increasingly aware of the costs of distribution according to channel, not enough are: ● Applying revenue management principles to group bookings, such as factoring-in the often-overlooked distribution costs of this “channel.” ●

●

Integrating revenue management technology with CRM processes and systems. Using dynamic pricing for corporate and wholesale channels. Auditing actual room production midyear, versus annually, and adjusting rates/terms accordingly for key accounts. Employing channel conversion techniques to encourage guests to book directly next time through less costly channels. Training reservations agents to understand and execute pricing strategy and to maintain the various “fences” that exist around rates without creating ill will.

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by Douglas Kennedy

In making the rounds on the conference circuit these days, it seems to me there’s a huge discrepancy between the way revenue management is practiced between hotels and hotel companies. On one side of the equation, you have hotels that have embraced revenue management as an integral part of their entire corporate culture; besides having a director of revenue, you also have a general manager, director of sales, and the even ownership/investment stakeholders understanding that how fundamental revenue management principles impact financial performance. At the other extreme, you have other hotels and hotel companies that still believe that revenue management is nothing more the new title of their old reservations manager, who is now in charge of managing electronic distribution channels since reservations was outsourced. Why this discrepancy? How is it that some company cultures have evolved while others have been stuck in their past ways?

“…revenue management is both an art and science, ” It’s been said that revenue management is both an art and science, but perhaps we should say revenue management is mostly about political science. In today’s industry environment, most financially successful hotels have the necessary technology to forecast demand, manage their inventory, and adjust to changing trends in the market as they are emerging. Those that don’t no longer have an excuse, as there is a wide variety of supplier/partners who are marketing systems of all levels of sophistication, according to the property’s needs and budgetary constraints. No, it’s not the systems that are holding so many hotels back from succeeding, but rather the people and their corporate poli-

tics. It’s the director of sales who stands up at the end of the revenue management meeting and says, “Yeah, but I still think we should take them because it’s a sure thing,” after the transient displacement report and banquet-room demand forecast both indicate the dates are peak demand. It’s the general manager who sits atop an org-chart where the revenue management is an assistant/supervisor level staff member. It’s the vice president of operations who still thinks that revenue management is a person rather than a core hotel management function crossing all disciplines within his or her company. It’s the owner/investor who doesn’t see the need to pay for the competitive-set pricing reports on the market these days and says “Why can’t they just check the Web and call around themselves?” To remove these barriers, we first of all need capable revenue management professionals who possess the analytical skills necessary to collect and evaluate myriad reports and data resources and to make sound revenue management decisions, which are already highly coveted skill sets in the labor market. But we also need revenue management professionals who are able to bring more than the numbers to the revenue meeting and can convincingly present their paradigm and convince others of its validity. So how can we help our revenue management professionals prepare themselves for dealing with the political side of revenue management? Here are some suggestions: ● Make sure you have a reporting structure that gives your director of revenue management (DORM) the necessary authority to execute their strategies. ●

●

Avoid becoming “ethno-centric” regarding your company’s revenue management’s philosophies. Encourage your DORM to network with their colleagues at conferences and meetings at the regional/destination level as well as within the brand/company if applicable. If necessary, encourage them to build their presentation skills by attending organizations such as Toastmasters International. Purge your company culture of old-school bias towards certain market segments or distribution channels; if there’s a new way to make more GoPAR (Gross Operating Profit Per Available Room) then be open to it. Educate owners and investors, because the key to a functional and healthy revenue management corporate culture is an appreciation of the concepts at the ownership levels.

Finally, if you are looking to looking to help your DORM get to the next level, you’ll definitely want to encourage join to participate in HSMAI’s revenue management special interest group. By attending this association’s annual strategy conference, (scheduled this year on June 19 in Minneapolis), or by participating in one of the regional workshops or Webinars to be presented by HSMAI University, you’ll make sure they are exposed to the latest suggestions and ideas of their piers. See www.revmanagement. org for more details about this association and its events. By supporting your DORM and giving them the tools they need to succeed, you’ll not only by winning at the politics of Revenue Management, but you’ll also make sure that your hotel has the right numbers when the “results are in.” 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 OCTOBER/NOVEMBER 2006 37

HUMAN RESOURCES

Corporate Orientation Programs

Retaining Great People Begins Before Day One by Denise Moretti

he Hamister Group Corporate success depends upon having a tight group of people united by the common goal of accomplishing great things. The best way to accelerate the period of time necessary for new co-workers to feel a part of your team is to implement an effective orientation program. You hired these individuals because you thought they would be great assets to your department and a competitive advantage to your company. So take the time to develop an orientation program that will allow both of you to begin your new journey together on the right foot. Here’s how:

Eight Keys to an Effective Orientation Program : 1. Prepare. Have a designated person or

HR team that prepares all paperwork, handbooks, workbooks, and minor details before hand. This will ensure that you are organized and consistent. Minor details may include: making sure that office/desk areas are clean, supplies ready, computer set-up, telephone programmed, name badge made, etc.

2. Provide an itinerary. Prepare an agenda from start to finish, including meet and greets with other co-workers, informational sessions with key players, etc.. By completing these basic tasks BEFORE the first day you show new employees that you are ready and eager for their arrival.

3. Get the word out. Send out an e-mail informing your

current co-workers who the new employees are, where they are from, what position they will be assuming, as well as some background information.

4. Details, Details, Details. Send essential information to

the new co-workers’ homes before the first day. Welcome them to the company and provide them with details regarding their orientation. Make them feel as comfortable as possible. Inform them of simple things, such as: where to park, what door to go in, whom to ask for when they arrive, what room the orientation session is in, etc.. Little things like this lessen first-day anxiety.

5. Mix it up. Have more than one “presenter.” There

is nothing worse than sitting in an orientation session for 8 hours straight with the same person: your audience will lose interest and won’t retain information. Involve technology and different modes of communication. For example, rotate between videos, PowerPoint presentations, talking/conversation, etc..

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6. Avoid information overload. Spread the orientation program out over a 2 to 3 day period, maybe even longer. Don’t focus on every little detail, but provide general overviews; the new co-worker will take in more specific information during the on-the-job training process.

7. After the fact. Have something that new-hires can take

home and review. It should contain the majority of the information conveyed during the orientation. This will allow them to re-examine what they have learned and determine any questions they might need to ask.

8. Evaluate. Have a feedback mechanism in place, such

as a written evaluation form, that the new co-worker can complete. This tool will help you continually improve your orientation program.

Development and implementation of an effective orientation program is a challenge, but one that should be of high priority, as well as a team effort. I pride myself in watching others succeed because they were provided with the necessary tools and resources. Do it right the first time by making new co-workers feel welcome and prepared, even before their first day! The Hamister Group, Inc. is a rapidly growing hotel management company. A leader in assisted living and health care management for over 25 years, the company now manages five hotels in Tennessee and Kentucky.

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SERVICE

The Hotel Butler

Recognizing the Value Butlers Bring to the Bottom Line by Prof. Steven Ferry

e all know the cliché, but what did the do that made him so uncharacteristically the focus of attention? In movies and board games, he generally is the one the police want to question further. In the hotel environment, the butler has turned out to be either a failed and somewhat embarrassing experiment, or the ultimate offering in Guest Services that helps keep high-rack occupancy rates at 100%. Where the butler concept fails, it is because he (or she) is cast in (frankly) degrading-to-the-profession roles such as ‘bath butler,’ ‘fireplace butler, ‘technology butler,’ ‘baby butler’ (who provides rocking chairs and watches children), ‘dog butler,’ ‘ski butler,’ and ‘beach butler.’ The idea being, apparently, that anything offering superior service in some small area is called ‘a butler’ in an effort to siphon some of the prestige of the profession. At best, the idea is myopic, at worst, self-defeating.

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SERVICE

At least when the term valet was extended to ‘dumb valet,’ that furniture item upon which one lays out clothing for the following day, there was no pretence that this was the real item. Fortunately for the profession, the public were not fooled or taken in by these ‘dumb butlers’ and the practice has faded relatively rapidly-hopefully before it soured guests on the value of being serviced by (real) butlers in hotels. And fortunately so for the butlers working in top hotels around the world, who do justice to the profession, and the hotel managements who have recognized the value butlers bring to the bottom line and the repute of word of mouth for their establishments. In an industry that is completely premised on the idea of service, and in which service is a key differentiator, it’s a no-brainer to institute butler service. Butlers have always represented the pinnacle in service quality. After the initial required training, the running of a butler service is not much more expensive to provide than regular service, yet it allows rack rates to be raised and creates a loyal following of repeat visitors, as well as enhancing word of mouth and thus new business that make the investment most sound. Instituting butler service can be done gradually, perhaps instituting it on one floor, and at not such a great cost, especially when considering the return on investment. Fifteen rooms can be well serviced by four butlers on three shifts, for instance, with one of them assigned as Head butler. If service is to be 24-hour, then a fifth butler would be needed. Assuming an owner or manager decides to institute butler service, the next question is, ‘How?’ The first step is to bring on board the most service-minded of your employees to undergo training. The second: Bring in one of the handful of butler trainers who can train hotel butlers (as distinct from butlers in private residence, as the hotel environment is very different and requires fewer and different skills than the traditional butler).

is not left tongue-tied, upsetting guests, or proving that he is not the smooth, low-key character that guests expect in their butlers. When friendly American hospitality employees chatter endlessly and over-familiarly with guests and follow mantras about always greeting the guest by name at least three times within so many minutes, they are presenting ingrained training patterns that do not add up to the butler experience. This is not to say that the butler is not friendly, but there are other ways of expressing it than by well-worn phrases and compulsive chatter. Thirdly, having covered the theory and done copious drills on applying the skills in a classroom environment, the trainer needs to move out with the butlers and expose them gradually to guests in the actual areas they will be providing butler service. By this is meant that trainees use each other and then senior staff as guest guinea-pigs, and they then service known-to-be-easy guests, and finally are allowed to service VIPs and known-to-be-difficult guests. The trainer should correct them on an internship or apprenticeship basis until the trainees can confidently do their duties. Finally, for training to be practical and workable, it needs to tie the general actions of butling into the specific hotel environment in which they are working. This means the trainer has to work with hotel management and butler trainees to adapt existing SOPs (standard operating procedures) and propose new ones that align with existing SOPs. It is workable to develop such SOPs during the early training steps and then drill them and correct them as needed during the apprenticeship period, fine-tuning against the hotel environment until they are smooth and effective. The result is best compiled into a butler manual that can be referred to as needed by the butlers, and which can also be used to train more butlers. The program will probably expand based on the successes of the initial pilot. That has certainly been the experience to date-one owner even building a whole new hotel at $1.5 million per-room-cost just to be able to expand on the butler service pilot he had run.

“ …building a whole new hotel at $1.5 million per-room-cost just to be able to expand on the butler service pilot he had run.’’

In putting together a training program, it is important to know the four main elements that hotel butler trainees and hotel butler programs need in order to succeed. First of all, there are the mechanical actions, the skills that butlers need, such as how to clean shoes, how to greet guests and tour them around their suite, how to arrange events for their stay, how to draw baths, pack suitcases, etc. Then there is knowing and adopting as second nature the psyche or mindset of the butler. In order to do something effectively and with conviction, one has to be able to be the role that one is playing fully. This is obvious when watching a great actor in a movie. But it is also true in life, too. Unless a trainee butler has the right demeanor, attitude and approach as a starting point, he or she will never be able to carry off the role convincingly or handle guests and even fellow staff with the aplomb that makes butlers such quintessential service professionals. This is why the training has to include the history, rationale, characteristics and communication skills of the traditional butler, and enough drilling-in of these elements so that when the novice butler is faced with a tricky or embarrassing situation, he or she

It is also possible that there will be some attrition or turnover, but to date, hotel butlers that have been trained as above have proven happy enough with their situation to politely decline the inevitable offers from guests to return home with them and run their private households or yachts. The end result of the whole program as outlined above is generally employees with high morale who competently carry out their duties, wowing guests and resulting, as stated before, in higher-than-usual occupancy, a high rate of return visits, and the opportunity to increase rack rates while enjoying stellar word of mouth. Perhaps it would be better to ask then, not what the butler did, but what he (or she) could do for your hotel. This article was originally published by hotelexecutive.com. 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. HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 41

RECIPE

Recipe CHOSEN

TUNA PASTA CASSEROLE This homely and comforting tuna casserole is a welcome addition to any weeknight dinner. Round out this quick and easy dinner with a tossed green salad.

Ingredients 1 1/2 cups wide egg noodles or pasta of your choice, cooked, drained and kept warm 1 Tbs butter or margarine

Procudure 1. Preheat oven to 400°F. Grease 1-quart casserole. 2. Melt butter in medium saucepan. Sauté garlic & onion, stir in flour and dill. Gradually stir in water and Knorr Concentrated Chicken bullion or the Knorr Chicken Cube, then the fresh cream. Cook over Medium heat, stirring constantly, until mixture is thickened. Stir In pasta , tuna, pimiento and chopped peeled tomatoes. Spoon into prepare casserole dish. Sprinkle with chips and the grated parmesan cheese.

Tbs all-purpose flour

1/8

tsp dried dill

Tsp chopped garlic

1/4

cup chopped onion

cup fresh cream

1/2

cup water

1 2

Tsp Knorr Concentrated Chicken Bouillon or 1 Knorr Chicken Cube (6-oz.) cans tuna, drained

1/2

cup green peas

Tbs chopped pimiento

1/4

cup chopped, peeled canned tomatoes

1. Prepare as above; do not top with chips. Do not bake. Cover; freeze for up to 2 weeks. Thaw overnight in refrigerator. Uncover.

1/3

cup crushed potato chips

2. Preheat oven to 400°F.

Tbs grated parmesan cheese (optional)

3. Bake for 35 to 40 minutes. Sprinkle with chips. Bake for additional 8 to 10 minutes or until chips are golden brown. Season with salt and ground black pepper.

3. Bake for 8 to 10 minutes or until chips are golden brown. Season with and ground black pepper. 4. As another option the chips could be omitted and greeted mozzarella cheese could be added instead.

For Freeze Ahead

Servings: 4 Recipe by Chef Aliessio Berenger Unilever FoodSolutions, Best Buy Maldives Pvt Ltd

42 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

Preparation time: 10 minutes Cooking time: 20 minutes

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 43

SERVICE

Listen to What Your Service = Respect by John Bowerman-Davies Uniforms are Saying by Eric Hahn

ver had an employee show up for work in a dirty, wrinkled or smelly uniform? Sure, haven’t we all? Any veteran of the hospitality business has seen or been through this be-

fore. We’ve all heard the same excuses, ‘I didn’t have time to wash my uniform,’ or ‘It was the only shirt or apron I could find.’ If image means everything, your servers and kitchen staff are the front lines of your overall image. We posed this question to a group of frequent restaurant customers: ‘What does a dirty, wrinkled or smelly uniform on a server or kitchen person mean to you when you go out to eat.’ Almost universally, they all said it means that the establishment itself is likely to also be dirty, or that it shows a lack of care and attention to detail. Further, most indicated that it would be an additional factor as to whether they wanted to visit the restaurant again. A good three-dimensional uniform policy will help safeguard your image:

The Stinky or Smelly Uniform: Showing up for work with

a clean, ironed uniform should be part of your employee policy. A uniform service is often the best solution to this issue, but for those who don’t use a uniform service, this rule should be required among your staff. And by all means, perfume should always be off limits! Perfume masks the senses and prevents your customers from enjoying the value of their meal.

The Wrinkled Uniform: A wrinkled uniform represents

untidiness among your staff. The respondents in the survey we conducted indicated that a wrinkled uniform reminded them of someone who had just crawled out of bed. Consider a uniform that is a polyester woven fabric that is easier to keep tidy.

The Dirty / Soiled Uniform: Sure, we all know this unpre-

ventable by the end of a shift. But at the beginning of a shift is preventable. If your kitchen staff spends any time in the dining room, make sure they change their aprons before they go in front of your customers. Additionally, if they are cutting meat at a buffet table, remind them that a bloody apron is unacceptable! A solid uniform policy should be embedded with your hiring and training policies. A uniform that looks neglected speaks silently to your customers in the dining room about the person wearing it. Unfortunately, the customers see a dirty, smelly, wrinkled uniform as a larger part of your overall operation, and usually incorporate that image into their overall experience at your establishment. To the contrary, a clean uniform says the exact opposite: neat and clean atmosphere, with tidy and respectful service. Having a uniform policy is a disciplinary issue that speaks volumes about the nature of your staff and your establishment. It’s a policy that is relatively simple to enforce and maintain. Clean uniforms mean a clean restaurant in the eyes of your customers which is a wonderful reason for them to keep coming back. Eric Hahn is the Founder and Research Developer for RestaurantEdge.com. Hahn is a 25-year industry veteran with a diverse background in the restaurant business and skilled research developer. RestaurantEdge.com. produces a free monthly newsletter that provides insight to changes in the restaurant industry. 44 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

es, I’m back to chatting with you about service in restaurants, and I think that I have hit upon one of the key reasons why service is soooooo bad. In too many cases there’s no respect for the waitstaff from the owners and managers of restaurants. And all too often I hear restaurant owners describing their staff as being complete idiots with negative intelligence. And I don’t hear this in private - I hear it out loud in restaurants for both the waitstaff and customers to hear. Now if I was one of those so-called idiots, my mind would not be on table #33, but on where I was going to apply for my next job. Plus the customers start wondering whether or not they should be in this place. One wonderful establishment where the above does not occur is the Ritz-Carlton. The first thing that every employee sees when they enter the hotel is a sign that reads: “WE ARE LADIES AND GENTLEMEN, SERVING LADIES AND GENTLEMEN.” Why can’t every hotel and restaurant live by that stan-

Why can’t every hotel & restaurant live by that standard? dard? By treating all their staff as real people, and by showing them respect, the Ritz-Carlton elicits a much better feeling from the management, staff, and most importantly, their clients! Another wonderful local establishment that long ago realized that the entire staff is important is the Rittenhouse Hotel. David Benton, the General Manager, takes the traditional leadership pyramid and turns it upside down (with David at the bottom). His very correct reasoning is that he can only see/meet/greet a small number of guests every day, but his staff (especially those on the other end of the pyramid) will meet all the guests everyday! And the guest’s impression of the establishment can be completely changed by a meeting with any given member of the staff. So why is it that restaurant owners spend buckets of money designing great new looks, concocting fabulous menus, hiring the best chefs in the universe (this week anyway), and then spend minimal time and money on the waitstaff. Not too many restaurant clients will meet the owner or the chef, but they will ALL meet some of the waitstaff. Doesn’t it make sense to invest some time, energy and money in these folks? Is it difficult to train waitstaff ? NO. All that is needed is motivation (from the owner and the waitstaff) and a little respect!

JBD John Bowerman-Davies is with LACAS COFFEE CO and can be contacted at jbdespresso@juno.com.

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 45

MISCELLANEOUS

here have been a slew of articles recently about the crisis of Human Capital. Advisory Boards, Associations, pundits all decry the turnover figures within Hospitality (50%), point to the changing and contracting labor pool, note the Unions cranking up enlistment activities, and government on the local, state and national stage legislating “living” wage and benefits.

Good Employee Retention Strategies Can Break the Myth ... The Grass Is Greener by John R. Hendrie

46 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

HUMAN RESOURCES

Much has been touted about Retention Strategies, Cost Containment and Talent Management. Some companies are at the forefront of change and enlightenment; most are not, accepting the “revolving door” of staff as the cost of doing business. Will this picture change? Probably not, for the subject has a redundancy and a long history. When business is good and growth is booming, few really ever take a long, strategic look. Turnover at an unearthly rate takes place during upturn as well as downturn. Sadly, it is part of our Hospitality psyche.

Retention Strategy:

But, to affect change, one needs to consider three factors, which should dictate a retention strategy:

2. What do your current employees feel about the organization? Employee Surveys do surface information about the organization and items which are actionable. Do not survey if you are not prepared to address the issues.

The cost of Turnover The Labor Pool realities What your Brand represents

The Cost of Turnover: Time is money, and your costs accelerate, based upon the level of the open position and the size of the organization. Let’s just start with the basics. For recruitment, there is the cost of advertising to begin an applicant flow. The selection process includes culling through applications, several “cuts” to decide who will be interviewed, often two to four interviews for the hire decision, processing time, new hire orientation, and then sufficient on the job training (which is also down time for the trainer and the operation). The higher up in the organization the vacancy is, the greater the cost for the process. For the sake of this example, let’s use $300 for entry level, $2,500 for Salaried/Middle Management, and $10,000 for Senior/Executive Management. Do the math on your own operation, appreciating that the above costing assumption is very conservative. That is money walking out the door!

Labor Pool Realities: Consider first the Generational Differences. There are the Matures (1909-1945), who used to believe in “cradle to grave” employment, now totally disillusioned. Then the Boomers (19461964), beaten up by the marketplace, transitioned, downsized, darkly skeptical. Next, the Generation X’ers (1965-1978), who want a balance in their lives, crave good communications, and approach work like 1099’ers. Lastly, there are the Millenials (19791988), who want it their way, now. The “onion” layers are just beginning, for a hard look at the further demographics show, for the bulk of the Hospitality Workforce, a heavily female population, mostly immigrant with different cultures and languages, less educated, feeling quite disenfranchised. What a tough market from which to draw!

What Your Brand Represents: Well, we are in the Experience Era, and we know that our Guests and patrons look for value, uniqueness, high level service, a quality product and exceptional delivery. Our Brand is our story, and we promote ourselves like crazy to entice that wary Consumer. And, we depend upon our Ambassadors, our worthy staff, to make the Experience memorable. They represent our interests and dictate our success. But, wait a moment, there is a disconnect. Fifty percent of our people are leaving, their departure is costing us money, and the replacement effort is ever more challenging. If this does not move Hospitality Businesses to establish a forthright Retention Strategy for 2006 and beyond, we deserve the reputations we invite and the devaluation of our product and service. Most bemoan the obvious; few take the initiative. But, for those who see the situation as critical, consider some of the following components for a successful Retention Approach.

“A fair days work…” This simple phrase has immense implications. To perform, our employees need the tools, the direction, the encouragement, and the environment in which to achieve. 1. Why are people leaving? Your Human Resources offices should be doing Exit Interviews. The information gleaned from these exercises often demonstrates problems and reasons with an easy fix apparent.

3. Communication. Your workforce is diverse, and your communication systems and mechanisms must recognize the audience. 4. Work environment. A quick look at your employee locker room is often indicative the value you place on the staff. Your employees want and deserve respect, involvement and particularly leadership. 5. Training and Development. We must provide the necessary tools to perform the current job and opportunity to improve the skill set and ability to move onward in the organization. “…for a fair days pay”. 6. Retention is impacted by reward, and this starts with a meaningful compensation package, both wage/salary and benefits. You get what you pay for! Additionally, there is a requirement for recognizing and rewarding performance excellence.

“ Why are people leaving? Your Human Resources offices should be doing Exit Interviews. ” Conclusion This is not rocket science or even Best Practices — this is just common sense. The answers have been around for generations, however, the impetus, always hovering, was seldom grasped. Your employees are just as discerning as your Guests. We have been smacking crocodiles, and the swamp becomes deeper, murkier and more deadly. The numbers do not lie; matter of fact, a good Retention Strategy is more than supported by the money saved on Turnover. We all tend to look over that fence, admire the landscaping and the greener grass we assume is the better alternative. Tend to your own yard properly, and you can put the neighborhood to shame! John Hendrie, is CEO of Hospitality Performance, Inc., a full-service hospitality consulting company. With a strong background in Hospitality, Human Resources, Organizational Effectiveness, and Communications, John has devoted his career to establishing Standards of Excellence across varied businesses. For more information, please visit www.hospitalityperformance.com

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 47

HUMAN RESOURCES

The Quest for Productivity

ow often do you come across the word ‘productivity’? The word is used quite liberally in the present economic environment, but I find that a surprising number of managers and supervisors attending my training courses have only a vague notion of what it means. In Australia we are in the unfortunate position where we pay staff for attendance; that is, we pay wages for the number of hours the staff member is present, irrespective of the work done during that time. If I asked you to design a remuneration system to base our economy on, would you pay staff to attend? I hardly think so — it’s really quite bizarre when you think about it. Productivity can be expressed as a percentage. For example, a productivity of 75% means that for each 8 hours paid for, there are 6 hours of actual work performed. The percentage represents the ratio of work performed against time present. Some of you would be shocked to discover what your staff productivity really is. Unfortunately, accurate figures are difficult to establish because it is necessary for you to monitor all staff activity and log the results using a stopwatch to work it out accurately. Australian research tells us that the average productivity for our industry is in the range of 45-55%. This may seem low, but apart from the obvious time wasters such as social conversations, unscheduled smoke breaks, astral travelling and the like, you have to consider the nature of your trade. We tend to have concentrated peaks of activity followed by quiet times during which there is a reduced sense of urgency. The financial implications of staff productivity are profound. Let’s say you hire a kitchen hand for $10 per hour. By the time you add the on-costs and other costs associated with employment your kitchen hand costs you double the base rate — a total of $20 per hour, just to be there. If you roster him for an eight hour shift

by Tony Eldred

The first involves understanding the preliminary steps to the recruitment and selection process. Before you advertise a position, the responsibilities and duties within that position should be carefully defined. This may involve you rationalising existing jobs and reallocating duties to different people in order to efficiently group appropriate tasks. Next, you must analyse the time and motion aspect of the position. Your procedures and the physical layout of your workplace must be arranged to minimise wasted effort. Perhaps in your work environment you have remote storerooms or other necessary facilities which could be rearranged to waste less time? Whenever you or your staff move from A to B it’s a dead economic loss to your business. Eliminating unnecessary movement increases productivity dramatically. You can also enhance productivity by careful staff selection. A person who wants to do the job or who has a talent for the kind of tasks required will generally have a much higher rate of productivity than one who does not. The extra time and cost taken to attract and select high quality staff will be repaid many times in terms of improved quality and efficiency. Once you select staff you have to train them properly. Someone said that the purpose of training is not simply to adorn the mind, but to direct the will. Good training fosters and builds positive attitudes and solid work ethics. Before you train a person you should attempt to ascertain standard times for each task and challenge the trainee to meet these times. The simple provision of goals and targets goes a long way to increasing work output — the average person likes to compete with themselves and with others. Finally, the standard of your supervision has a great bearing on your ultimate productivity. If you understand the process of motivation and can get staff to want to perform for you, your productivity will be far higher than if you rely on authoritarian discipline. All your staff need to know your general business plan and how you want them to fit into the scheme of things. They should be allocated responsibilities, not tasks. If your staff regularly have to come to you or your supervisors and ask: ‘What do you want me to do now?’, you should re-examine the way you lead — they should know what is expected and how long it should take, without having to ask. Every time they ask they are fracturing their work flow as well as yours.

“ A person who wants to do the job or who has a talent for the kind of tasks required will generally have a much higher rate of productivity than one who does not. ” and he’s 85% productive it will cost you $26 per hour to get real work done; if he’s 50% productive the cost goes up to $40 per hour; and so on — just to get basic work performed. It is unrealistic to ever expect to achieve 100% productivity from any staff, but 85% is possible and is a good target to aim for. This gives the average business owner a potential for a 30% increase in staff productivity across the board. If you have ever thought you are understaffed, think about this: if you can gain an extra 30% productivity, you gain the equivalent of one new staff member for every three you’ve already got on the payroll. The obvious question is: How do you lift your staff productivity? The answer involves the use of a number of different leadership skills; some of them advanced. 48 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

An amusing aspect to the whole subject of productivity is that I keep seeing business owners who staff their operations with what we call warm bodies; i.e, those who spend little time recruiting, those who pay the low wages and provide little or no training. They think they’re saving money, but they often have the highest labour costs — the result of poor productivity. Tony Eldred is the Managing Director of hospitality management consultants Eldred Hospitality Pte. Ltd. For more information visit www.eldtrain.com.au or email Tony directly at teldred@eldtrain.com.au

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 49

0 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

SALES & MARKETING

Build Strong, Sustained Customer Relationships with V.I.A.G.R.A.

he bonds that tie long lasting customer relationships are very important in today’s world. It is said that the average person has 50,000 thoughts go through their mind daily. As a sales person and supplier, you want a few of those to be about you. More importantly, you want those thoughts to be positive. ●

If you maintain strong customer relationships, you will; Gain more business and make more money

●

Be respected and people will refer you

●

Enjoy your work (and personal) life

Building strong customer relations is easy. First, you need to have a high level of self-esteem and truly want to satisfy your customers. Then all you need to do is follow the six V.I.A.G.R.A. steps to long lasting customer relations.

V- VALUE THEM - Sincerely value them and their business.

The most important thing is to show you care about them and their business. When you see them, always offer a “good” handshake. Always use their name and show genuine interest in them. It should go without saying, but a smile on your face will go a long way. As Groucho Marx said about acting, sincerity is important to sales; “once you can fake that, you’ve got it made.”

I- INTEGRITY IS PARAMOUNT - Always do what you

commit to do. Follow through with your commitments and if you cannot deliver, then let them know. If something goes wrong with their order, make sure they hear it from you. Remember, if you always do as you promise, your customer will trust you, and trust is the foundation for solid customer relations.

by Terry Wisner

with a little humor. Recognize important accomplishments they have made. Also sharing important personal things about you will help develop relationships, but don’t forget the 80/20 rule.

A- AMELIORATE THEIR LIVES - To ameliorate means to improve or make better. Everything you do for your customer should improve their business or personal life. This is one of the biggest reasons successful sales people site as to why they enjoy being a sales person. As the old saying goes; sow so shall ye reap. If you fail to maintain strong customer relationships, you will: ● Lose business and money ●

Not be respected and get few (if any) referrals

●

Experience a miserable personal and professional life

So share V.I.A.G.R.A. with your friends and help them build strong, sustained customer relationships. Terry Wisner, of Partnering To Success, says; “Everyone wants to add value to their selling proposition,” following these six steps on a consistent basis, will result in higher levels of customer satisfaction and loyalty. Terry delivers keynote speeches and seminars, like “Be A Customer Service Star” and other teambuilding, sales, and leadership topics.

“ Ask plenty of questions…”

A- ASSESS NEEDS - Ask plenty of questions…then listen. The old 80/20 rule fits well in the selling transaction. You should spend 80% of the time talking and 20% of your time listening. Truth be known, many sales reps exhibit just the opposite, they talk 80% of the time. It is important to note that customers are often, what I like to call, “informationally challenged.” Therefore, the rep must ask questions to elicit vital information from the client in an effort to understand the need behind the need.

G- GIVE MORE - One of the biggest complaints custom-

ers site as to why they left a particular supplier is that they did not get what they expected. Disney World is the best example of exceeding customer expectations. Delight your customers by giving them what they want, and more. Now that doesn’t mean giving away the store. Send them an email or better yet a hand written thank you note. Call them to see how pleased they are with their decision. Treat them the way you like to be treated or better yet, like Dr. Tony Alessandra says; “treat them the way they want to be treated.”

R- RELATE TO THEM - One of the best ways to sustain great customer relationships is to get to know them on a personal basis. Remember their birth date and send them a card or give them a call. Whenever you transact with them, lighten things up

If you want your Sales and/ or Service team members to delight their customers, call Terry. If you want to increase customer retention, call Terry. If you want to attract new customers, call Terry Wisner, the “Partnering Pro.” Your team members will learn how to delight your customers every time and how to encourage each other to do the same. Visit www.p2s.us or contact us at terry@p2s.us and let’s discuss the possibilities. HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 1

TRAINING

Don’t Let Your Systems Drive Your Customers Crazy! by Ron Kaufman

52 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

SERVICE

ustomers are often left frustrated by a company’s smoothrunning and standardized, but inflexible policies.

sor, who concurred. “I’m sorry, but that’s our policy,” she said without much concern.

Does your company “run like clockwork?” Are your accountants pleased with how smoothly everything moves along? Are your managers content with how customers are managed throughout your system?

I surrendered to her insistence, listened as she cancelled my Hilton Honors Club reservation, declined to have her book me back into the same hotel at the higher conference rate, and hung up the phone in disbelief.

If so, watch out! Your present methods may include policies and procedures that are convenient for the company, but utterly frustrating for your customers.

I called right back. I reached a different reservations clerk and made another reservation. I used my frequent flyer award coupon and the new Hilton Honors Club membership number I had received in the previous phone call. This time I kept my mouth shut about attending any conference!

Customers discover these land-mines of dissatisfaction in your company almost by accident. They usually stumble upon them in the course of normal business. Dedicated customers will speak up and complain. Others will just go away. I am one customer who makes a point of letting companies know when their polices are frustrating, preposterous or just plain customer-unfriendly. Unfortunately, many organizations have built up a thick layer of resistance and defensiveness towards such comments. They have stopped listening to the voice of the customer...especially the customer with a complaint.

I paid just US$85 when I went to Los Angeles. I enjoyed the Hilton Towers room and enjoyed the complimentary fruit basket upon arrival. No thanks to Hilton’s absurd policy and customer unfriendly procedures, though. Somewhere deep inside the marketing department of Hilton Hotels, yield management professionals have carefully calculated the maximum rate they can, and will, charge participants at an international conference.

In recent weeks I have had a series of actual experiences bizarre enough to make me wonder whether anyone is listening at all! I think you’ll find them both funny and disturbing.

Meanwhile conference participants are also thinkers, communicators and frequent flyers... real-live customers! Hilton Hotels, are you listening?

“The Conference Rate” at Hilton Hotel in Los Angeles:

“Frequent Flyer Coupons” with Hertz Rent-A-Car in San Francisco.

I was making arrangements to attend the American Society of Training and Development Annual Conference in Los Angeles. As a frequent flyer, I have many award coupons offering a 50 per cent discount from usual hotel rates.

My next step was to make a three-day car reservation for a preconference visit to San Francisco. I called Hertz, where I am a member of the “Hertz Number One Club” for frequent travellers. I planned to use an award coupon for one free day rental from American Airlines and additional award coupons for two more free days from United Airlines.

I called Hilton Hotels in California to make my reservations. The reservations clerk was infinitely helpful. First, she took my name, then my contact numbers. She confirmed the dates, my room preference and credit card number. She asked if I was a Hilton Honors Club member, which I was not. She signed me up on the spot and then remarked: “Now that you are a Hilton Honors Club member, I can offer you an even lower rate, and an upgraded Towers room on a higher floor. A fruit basket will be waiting for you upon arrival.” I was delighted. And my special discount rate was just US$85 per night. In signing off, I said: “Thank you for your help. I am looking forward to staying at the Hilton during the conference.” “The conference?”, she shot back quickly. “What conference are you attending?” I replied that I was attending the American Society for Training and Development’s 50th Annual Conference at Disneyland. She said quickly: “Mr Kaufman, if you are attending a conference during your stay, you must use our special conference rate of US$112.”

The telephone reservation officer gave impeccable service. She greeted me pleasantly, acknowledged me as a member of the Number One Club, confirmed my dates, flights, pick-up location and my choice of automobile. Then she asked me what time I would be returning the car after the first day of rental. “I want the car for all three days,” I replied. “You can’t keep the same car for all three days,” she asserted. “After the first day you have to bring the car back and pick up a different car for the next two days. The first day is paid for with your American Airlines coupon, but the next two days are with your United coupons.”

“ She greeted me pleasantly, acknowledged me as a member of the Number One Club, confirmed my dates, flights, pick-up location and my choice of automobile. ”

I laughed at her proposal and stated that I was happy with the special rate she had already confirmed on my behalf. “Oh no,” she repeated. “If you are coming for a conference, you must use the special conference rate. We have a block of rooms set aside for conference participants on a lower floor. These rooms are specially reserved for the people who are attending the conference.” My protests were to no avail. She checked with her supervi-

I was sceptical. “But I am the same person, with the same Hertz Number One Club member. I am the rightful owner of all the awards coupons, and I want a Hertz automobile for three consecutive days. Surely you will let me keep the same car, and avoid having to come back to the airport in the middle of my Bay Area vacation.” “That’s not the way our system works here, Mr Kaufman,” she replied. HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 53

SERVICE

“But it should work that way, don’t you agree?” I asked, appealing to her sense of logic, concern and elementary customer care. “I don’t make the rules here, Mr Kaufman. Just follow them. What time will you be returning the car after the first day?” Somewhere deep inside the heart of Hertz, a group of senior accountants live comfortably with their precise policy of “one airline, one coupon, one car, no exceptions”. But somewhere closer to this customer’s heart lies, frustration, inconvenience, and incredible disbelief. But I’m not the type of customer who gives up in these situations. When my Hertz reservation commenced in May, I took along a copy of this article to San Francisco and had a long chat with the most senior manager I could find at the airport. I ended up keeping the same car for three days. Hertz Rent-A-Car was listening.

“You Don’t Get Juice” with a Broiler Meal at Burger King:

Accountants are happy. The daily sales reports are neat and accurate and clean. But at the counter of the restaurants, face to face between customers and staff, both parties experience frustration. The advertising slogan says “Sometimes you’ve just got to break the rules”, but the restaurant manager cannot. After this article first came out, Burger King called and invited me to lunch. They asked me to tell my story. They asked me for suggestions. The following week I returned to the same outlet seeking a BK Broiler Meal, with small orange juice. The counter staff smiled brightly and keyed in my order. “How did you do that!?” I asked in a state of pleased amazement. “Oh, now it’s easy,” she replied. “Last week they gave us a new key on the computer to make simple menu changes.” Congratulations, Burger King. You are listening! Now each of these stories is completely true, but they are only valuable if they inspire you to listen more closely to your customers and more carefully examine your policies and procedures.

“ How can we serve you better?… ”

You don’t have to call a reservations officer to experience procedural insanity instead of convenience and customer care. Before going vegetarian, I used to visit Burger King for their BK Broiler meal, a fast food lunch of broiled chicken sandwich and french fries.

But instead of taking the large Coca-Cola included in the package, I always asked for a small glass of orange juice instead. The counter staff would freeze up in uncertainty and refer my request to the floor manager. One young manager was particularly memorable. “I’m sorry, sir,” he told me. “You can’t have the orange juice with the BK Broiler Meal.” “Oh, sure I can,” I replied, “I do it all the time at the other Burger Kings. I know there is a 65-cent price difference and I am happy to pay the difference.” “That’s not the problem,” he said with a touch of annoyance. “There’s no key here on my computer to make the substitution, so I can’t let you do it.” “Hey, sometimes you just have to break the rules,” I said, reminding him of Burger King’s own multi-million dollar advertising campaign. “I’ll take the BK Broiler meal, with orange juice.” He realized I was not going to take “No” for an answer and he could not very well go against Burger King’s well-known advertising promise. “I’ll do it for you just this once, as an exception,” he said curtly. “Oh c’mon, you can do it for me anytime,” I replied. “No,” he stated, looking at me straight in the eye. “I will do it for you this once, but I won’t do it again the next time.” “Wait a minute,” I asked gamely. “You are about to make me a happy customer. Do you really mean you wouldn’t make me a happy customer again?” “I will do it for you this once,” he repeated flatly. When I received my meal, with orange juice, I gave the manager a genuine smile and said, “See you again next time.” He quietly replied, just below his breath but loud enough for me to hear, “No, I don’t want to see you again.” Somewhere deep inside Burger King, computer programmers design point of purchase terminals to carefully limit the choices and options of customers around the world. 54 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

And remember, although certain polices may cause customers to fume in frustration, the rest of your system may quietly conspire to keep the complaining customers’ voice at bay.

Ask your customers: “How can we serve you better? Is there anything that frustrates you most about the way we provide our service? Is there anything you would like us to do more of ? less of ? start doing? stop doing? What do other companies do for you that we don’t do here?”

Ask your staff: “What do our customers ask for that frustrates you the most? Are there any special customer requests that really drive you crazy? Is there anything they ask for that is against our company policy? Is it the customer that makes your staff so mad, or are they driven to distress by limitations in your systems, policies and procedures?

Make special requests: You can learn how to improve your own systems by testing the flexibility of others.Whenever you dine, travel, shop, purchase or rent, make requests that are slightly different from the usual routine, ask for specials “not on the menu”. Watch carefully how each establishment responds to your requests. Are they fast, flexible and friendly? What is it about their policy and systems that allows them to respond? Finally, ask yourself: Are you willing to make the change? Your accountant is comfortable. Your managers are content. But who are you in business for? Your accounting department will still be with you tomorrow. Will your customers be with you, too? Ron Kaufman is an internationally acclaimed innovator and motivator for partnerships and quality service. He is the author of the bestselling “UP Your Service!” books and the FREE monthly newsletter “UP Your Service!”. For more information and a sample newsletter, visit www.RonKaufman.com

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 55

FOOD & BEVERAGE

The Importance of Avoiding Cross-Contamination

hough invisible to the human eye, bacteria are omni-present in kitchens – both at home and in restaurants. They can affect food taste, but more importantly they can also impact the safety of the food we eat. Many bacteria live and can grow very rapidly in food particles, especially in moist foods with temperatures between 41 and 140 degrees Fahrenheit. Left untreated, they can cause salmonella or E coli food poisoning and other serious illnesses. The best defense against the dangers of bacteria is a clean kitchen. And while it’s extremely difficult to make cooking and food preparation surfaces and utensils fully bacteria-free, there are many steps foodservice professionals can and should take to both reduce the amount of bacteria present, and lower the likelihood of cross-contamination of bacteria between food ingredients and prepared dishes.

First Line of Defense Hands are one of the major causes of cross-contamination. Bacteria that can cause illness are often present on hands, so it is important to wash hands frequently throughout the day. Washing hands before doing dishes helps to ensure that bacteria living on hands are not transferred into the dish water. And, washing hands after doing each task associated with food preparation helps to minimize the transfer of bacteria from raw to cooked foods, cold foods to hot and many more.

by Rich Kussin & Lynn Helmers, Procter & Gamble Foodservice

Cleaning Sink - Be certain the water in the cleaning sink is hot, ideally between 120 and 140 degrees Fahrenheit. Hot water helps to break up baked-on, caked-on food particles and to melt dried grease. This temperature is also necessary to activate the grease cutting and cleaning chemicals formulated into dish detergents.

But chemicals added to the cleaning sink need to be strong enough to get the job done, too. Detergents such as the professional grade Dawn® Manual Pot and Pan Detergent include exclusive surfactant and solvent systems that work together to breakdown tough grease and clean more effectively. Dawn, for instance, delivers longer-lasting suds. And since suds are the signal of when it’s time to switch over the dish water in the cleaning sink, long-lasting suds mean less sink-turnover and more efficient dishwashing. In this step of dishwashing, a brush or cloth may be used to scrub food surfaces and completely remove all soils. However, the brush or cloth must be cleaned between uses to clear food particles that may become trapped in the bristles or fibers which can cross-contaminate the next batch of dishes.

Hot and Cold At the top of the list is making certain cooked foods and raw foods remain separated. This means using different cutting boards and utensils for cooked and uncooked foods during the preparation process, and making sure to wipe prep surfaces clean after every use.

Proper Storage It is equally important to store foods properly, both in terms of temperature and containers. Foods that are meant to remain cold should be stored at temperatures under 41 degrees Fahrenheit. Foods meant to be hot should be held at temperatures above 140 degrees Fahrenheit. And all foods must be stored in foodgrade packages, wrappings and containers.

Cleansing and Sanitation The best method for cleansing and sanitization is a three-step process. In restaurants, this is completed in a three-compartment sink – in which one sink is dedicated to each step. And while some products claim to clean and sanitize all in one step, contentious food service pros continue to stress the importance of separately performing each step of the three-step process. HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

‘‘ …all foods must be stored in food-grade packages, wrappings and containers. ”

FOOD & BEVERAGE

Rinsing Sink - Though the rinsing process is perhaps the most intuitive, there are three techniques often used in restaurant kitchens to ensure all dish detergent has been removed from food surfaces and items are rinsed thoroughly. The first is to rinse the food surfaces under running water. The second is to dip the surface in and out of rinse water in the sink compartment. The third is to soak the clean dishes in a sink compartment filled with clean rinse water. Whatever option is used, it is imperative to change the rinse water as soon as soap begins to rise to the rinse water’s surface. Sanitization Sink - Sanitization is the crucial third and final step to further reduce bacteria and other microorganisms that may be remaining on the already washed and rinsed food surfaces including pots, pans and cooking utensils.

“ Drying a sanitized surface with a towel can start the cross-contaminate process all over again,…’’ There are two common types of sanitizers: chlorine and quaternary. Because it is a common household product, chlorine bleach can be used for cleaning in the home. But many food service professionals do not find chlorine stable enough for use in a professional setting. Food particles tend to break down the chlorine after only a few uses, requiring the sanitizing sink to be

changed over more frequently. And, without the benefit of bubbles as an indicator – as in the cleaning sink – it is not as easy to tell when it’s time for a sanitizing sink to be changed over. One of the key advantages of quats is their stability. Free chlorine is not stable in solutions, so it deactivates over time. The process is accelerated in higher temperature solutions, in the presence of food residues, or in lower pH solutions. Thus, many operators choose quaternary ammonium sanitizers to maximize the effective life of their sanitizer solution and reduce concerns of deactivation. Whichever sanitizer is used, it is important to follow the instructions on the packaging to ensure correct amounts are mixed with the sink water. Too little will not effectively get the job done, and too much will leave a film on the food surface and will require additional rinsing, which can remove the sanitizer and negate its ability to remove bacteria from the surface. And finally, let all clean cookware and utensils air-dry. Drying a sanitized surface with a towel can start the cross-contaminate process all over again, since towels can contain tiny particles of food and bacteria. Foods provide a warm, moist environment where bacteria can thrive. Ingredients such as meat, fish, dairy products, eggs, cooked rice and cut melons are a ready-made incubator, and bacteria seem to know just how to use them. Though it’s impossible to rid the kitchen of all bacteria, the suggestions included here will help keep food preparation and cooking surfaces -- as well as kitchen tools -- clean and sanitary. Applying these tips judiciously in food preparation environments will not only reduce the amount of bacteria and keep foods tasting great, they will also help provide a safe dining experience for guests by protecting against the dangers of bacterial infection and crosscontamination in the kitchen.

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SERVICE

The Dangers of Being a Host

by Tony Eldred

recent dining experience of mine might be of interest to some of you. My girlfriend and I go to a particular restaurant at least once a week. As people have a habit of doing, we had discovered a place that impressed us, and we’d fallen into a pattern of regular patronage. We knew what we were going to get; there were never any surprises just good food and informed, friendly service. The food is a blend of traditional Japanese artistry and local ingredients. Always very fresh, always presented superbly, and good value. The ambiance is modern, airy, chic. We bring the tone of the place down by coming-in dressed in tracksuits after playing sport in the evening. I’d never had any disappointments eating there, so when a group of my friends prevailed on me for a suggestion for a good night out, I broke my usual golden rule and extolled it’s virtues. I should have known better. If a hospitality consultant gives a restaurant recommendation, it is taken as gospel and creates very high expectations. I’ve found that very few restaurants are consistent enough in their performance for me to feel totally confident in their delivery. I might go there myself, but I don’t usually recommend them to others. This particular night everything conspired against me. Sadly, I was there as the host, cringing in excruciating embarrassment as a performance worthy of Basil Fawlty unfolded around me. We arrived at about 8.00pm, and were seated and offered a drink. I noticed that there were less front of house staff than

ordered sushi. There will be a delay.” I confirmed this myself by checking-out the sushi chef — this `sensitive artiste’ was resisting all efforts to increase his productivity and was hiding behind a decidedly hostile expression and a malevolent looking cleaver. “I thought you said this was a good restaurant, Eldred. I’m starving! Where’s the food?” It began good naturedly and slowly rose to a venomous crescendo. An hour had passed; still no sushi. I wanted to run away. It was time for action. I did the only thing that seemed sensible at the time: I ordered sake for myself and drank it. Then I ordered another. The waiter finally approached the table after an hour and twenty minutes and deposited three small plates of sushi, each containing five pieces, on our table. You could feel the wave of disappointment. “That’s not what we ordered. Where’s the sashimi? This won’t feed six people,” said one guest. “Eldred, this is ridiculous, what kind of restaurant have you brought us to? I thought you were supposed to be the expert.” Six stouts and two sakes can have different effects on different people. I was half pissed and furious. Out of the hundred or so times I had visited the place, why had they chosen to screw up on the occasion I had brought guests? Why me Lord? . . . I called the waiter. He wasn’t having a good night either, and was obviously fedup with dealing with irate customers. His response to my assertion that we were not happy brought the full, shrill, bitchy, handson-hips routine: “What are you complaining about? We’ve given you something to eat! I wrote the right order on the docket, it’s not my fault.”

“ `Bring me the owner’s head on a plate!’, I seethed inside, smiling through clenched teeth. ” normal and that the tables were filling-up fast. The staff were starting to move rapidly and gesticulate in that urgent manner that denotes a foodservice system that is beginning to unravel at the seams. We ordered several large platters of sushi and sashimi. My guests commenced a lively conversation which was punctuated by the waiter returning at regular intervals to take orders for more drinks. My friends were not being bashful with the alcohol, and I’d foolishly suggested that Tadcaster Porter (a fairly potent stout) went particularly well with sushi. They accepted this recommendation with gusto and bounced into it. Out of the corner of my eye I could see the restaurant owner and the waiters going into little huddles and conversing in an animated manner. What was happening? I was beginning to become concerned we had been there nearly 45 minutes, we’d had about six large glasses of stout each, and no food in sight. I called the waiter. “I’m terribly sorry, Mr Eldred. We have twice the number of customers we usually get on a Thursday night, and every table has 58 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

`Bring me the owner’s head on a plate!’, I seethed inside, smiling through clenched teeth. I stood-up and went to confront the great man himself. He was having a bad night too. Stifling the intense urge to commit a violent crime of passion, I approached him and told him of my disappointment. “What can I do?” he replied with a shrug more reminiscent of Tel Aviv than Tokyo.

Eventually we ordered something they could supply and we all got fed after two hours waiting. The crowd died down, the sushi chef became less menacing and the owner regained his composure. He was most apologetic. He even sent us a complimentary bottle of wine. Nice one — more alcohol — that’s just what I felt we needed. My friends were already primed to the point where they were drooling and talking shorthand. Despite the owner’s attempt at conciliation, they were so unimpressed with the place they elected to leave a ten cent tip after a deliberately loud debate. I still get rubbished about that night, and I’ve had reservations about going there ever since. I know that I’m being unreasonable; one in a hundred isn’t a bad screw-up ratio, but now I’ve got this subconscious mental association linking the restaurant with pain and social humiliation. Tony Eldred is the Managing Director of hospitality management consultants Eldred Hospitality Pte. Ltd. For more information visit www.eldtrain.com.au or email Tony directly at teldred@eldtrain.com.au!

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MISCELLANEOUS

The Art & Science Of Hospitality by Keith Kefgen

o be successful, today’s hospitality executive must be a service fanatic, marketing guru, Wall Street analyst, real estate appraiser and a first-rate coach.

In the literary masterpiece, The Bhagavad-Gita , it says, “Through selfless service, you will always be fruitful and find the fulfillment of your desire”. Service is the essence of the hospitality industry, whether you are a waiter or a Chief Executive Officer. Unfortunately, economic and geo-political circumstances have made it more difficult to deliver world-class service and business profitability. To be successful, today’s hospitality executive must be a service fanatic, marketing guru, Wall Street analyst, real estate appraiser and a first-rate coach. Take the typical day in the life of Terrance Lanni, CEO of MGM/Mirage. He wakes up to a conference call with Wall Street analysts reviewing financial forecasts and earnings estimates. Soon after, he attends a meeting to evaluate a new advertising and casino marketing campaign. He then answers mail, which includes guest comments from some of the twenty thousand people who visit his casinos every day. He then chairs a meeting of his executive team to articulate the company strategy. He then reviews the construction plans for an expansion of the MGM, and no day would be complete without talking to Kirk Kirkorian, the billionaire investor and largest company shareholder. Besides Lanni, when I think of the premier leaders in the hospitality industry a number of names come to mind, Steve Bollenbach, Isadore Sharp, Barry Sternlicht, Bill Marriott, Edouard Ettedgui, Jonathan Tisch and Steve Wynn. Each has a unique style that makes them successful. For example, Bollenbach is known for his strategic and financial acumen, while Steve Wynn is recognized as a creative genius. Ettedgui is renowned for his passion for quality and his international savoir-faire, while Tisch is known as a great spokesman and political powerhouse. Sternlicht and Sharp are both known as communicators, Sternlicht with Wall Street and Sharp with employees and guests. Marriott, on the other hand, has built a conglomerate based on systems and market segmentation. Mix these attributes with an obsession for service and you have a set of skills that is difficult to find in any industry.

Strategic Savvy Bollenbach, the CEO at Hilton Hotels has earned a reputation as a savvy financial executive and a strategic thinker. While at Marriott Hotels, he engineered the split of the company into Marriott International and Host Marriott. In one strategic move he separated Marriott’s management business and its real estate holdings. He created a win/win proposition for management and investors. At Hilton he has crafted a simple strategy based on four “value drivers” that every constituency believes in and has culminated in the merger with Hilton International. 0 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

In many C-Level searches, strategic thinking has been a priority. For example, Arlington Hospitality engaged me to find a new CEO following a proxy battle. The direction of the company and the strategic plan were at the heart of the conflict. As part of the interviewing process we made candidates draft a “strategic white paper” articulating their opinions regarding the future direction of the company. It became a distinguishing feature for the winning candidate. Other candidates who “presented” well did not have the same intellectual focus or vision for the company in their white paper. Many other candidates were discounted because they appeared to represent the “status quo” and did not appear to be progressive thinkers.

International Savvy Like many other industries, hospitality is truly global. Leaders must understand business, political and social issues in every part of the world. Edouard Ettedgui, CEO of Mandarin Oriental Hotel Group epitomizes the international leader. Schooled in Paris, he has managed businesses in Morocco, Zambia, Zimbabwe, Peru, London and Hong Kong. His global experiences are helping Mandarin expand faster than any other luxury hotel brand with development projects in New York, DC, Boston and Tokyo. The complexity of those development projects made very few companies suitable as an operating partner.

MISCELLANEOUS

Balancing Profits & Guest Satisfaction Bill Marriott, CEO of Marriott International has been adept at one of the greatest balancing acts in the industry. Marriott’s business interests involve every market segment of the hospitality industry. Ritz-Carlton in the luxury segment, Marriott in full-service, Courtyard in mid-rate, Residence in extended stay, timeshare, food service, senior living and so forth. Furthermore, Marriott has accomplished his success by having the finest systems in the business. When you hear that Marriott “does it by the book” it is the real deal.

Communication Savvy Barry Sternlicht, former CEO at Starwood Hotels was the consummate communicator. His reputation on Wall Street was that he was the most accessible CEO in the business. His financial background allowed him to understand the Wall Street mentality and anticipate investor sentiment. Isadore Sharp at Four Seasons is also acknowledged for his ability to connect with people. He has a long-standing policy that every phone call to him or a company manager is returned promptly. He has developed an uncanny ability to establish loyalty with employees and customers alike. Four Seasons is consistently ranked as the best Luxury hotel chain in the world. For six straight years, they have also been named to Fortune Magazine’s list of the Top 100 Companies to Work For .

Creative Savvy Steve Wynn of Las Vegas fame is probably the most creative executive of the group. His capacity to create a vision and then turn it into reality is unrivaled. When Steve sold the Golden Nugget in Atlantic City to build the largest casino in Las Vegas, most thought he was crazy. At a cost of nearly a billion dollars, the Mirage was ridiculed as a pipe dream. The Mirage of course was nothing short of incredible. The Mirage’s success set off a building boom in Las Vegas that has gone unabated for the last decade. Wynn followed that up with the Bellagio and most recently the

“strategic white paper” Wynn Resort Las Vegas. Wynn is also one of the great promoters of our era. His casino promotions and his flair for advertising have made him a household name. Another source of Wynn’s success is his ability to attract top talent. Talk to anyone in the casino industry and ask who they would most like to work with, and Wynn’s name comes up most often.

so I understand what a guest wants”. Just because someone is a discriminating customer doesn’t prepare him/her for the service industry. In fact, very few industry outsiders have done well at the CEO level. Prominent CEOs such as Stewart Bainum, Gary Mead, Rand Araskog and Norm Blake all saw more value in selling their companies. In addition, the research suggests that many of these outsiders got frustrated with the hospitality work environment. Moving the needle in hospitality is very difficult to do without significant time and money.

Practical Experience + Degree If you were building the perfect resume for hospitality, what would it look like? First, it would combine practical experience with a college degree. Gone are the days of apprenticeship programs and the school of hard knocks. College programs such as the Hotel School at Cornell University are becoming the norm rather than the exception. With the shift in many world economies to a service orientation, colleges are responding with programs that are geared to those needs. Even the Laussane hotel school in Switzerland (the oldest hotel school in the world) has changed its curriculum to be less focused on apprenticeship and more on western business philosophy. Practical experience should include experiences in operations, marketing, finance and real estate. Chains such as Hilton and Marriott are better at providing these cross training opportunities, and as such, have more marketable employees. Likewise, tenure at the chains average 7-10 years versus the industry average of 2-3. Secondly, the resume would also have some international experience and a consistent increase in responsibilities. Hospitality employers are also very brand conscious. For example, managers at Four Seasons, Ritz-Carlton and Mandarin get recruited much more often than a candidate from an independent operation. Hospitality’s reputation as a job-hopping industry has also been changing. With the enormous investment in human capital required today, employers are insisting on stability and commitment from new employees. To garner commitment, the better employers are offering a structured succession plan and the cross training previously discussed. My advice to aspiring leaders in hospitality: ● Train your brain – Try distance learning, association & university workshops, become a voracious reader and learn from your mistakes ●

Community/Government Relations Solid relations with local, state and federal governments have become a requirement in the travel industry. Two standouts are Jonathan Tisch at Loews Hotels and Terrance Lanni and MGM/ Mirage. Tisch almost single-handedly turned back the repressive tax code in New York City making it one of the most business friendly cities in the world. Lanni has also been a leader in creating win/win public policy for the gaming industry and has supported research on the social effects of gaming.

Service Mentality Interestingly, from our historical research it appears that a service mentality must be nurtured at a young age. Selling widgets and selling an experience are dramatically different. Empathizing and anticipating the desires of guests must be learned. How many times have I heard an executive say, “I stay in hotels all the time

●

Pledge to serve – Take a personal oath to serve others, do volunteer work, give back to the local community, learn empathy Show passion and commitment – Understand that success is based on purpose, perseverance and patience Think like an entrepreneur – Owners think differently than laborers, put yourself in the shoes of an owner and act like they would Get creative – Creative power comes from exercising the mind and body, challenge both. Workout, do yoga, take a painting or creative writing class or join a sports team. Lead, don’t manage – You manage things, but you lead people.

Keith Kefgen HVS Executive Search Office: New York Email: KKefgen@hvsinternational.com Address: 372 Willis Avenue Mineola, NY, 11501 Phone: +1 516 248-8828 ext. 220 (Work) +1 516 770-2331 (Mobile)

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62 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

HUMAN RESOURCES

To be Effective, Leaders Need to Know Who They Are

n 1 April Vittoria Coffee announced to Australia through a series of advertisements that it had discovered the white coffee bean. No longer did you need to add milk or cream. Brew up your white coffee from Vittoria’s specially developed white beans. Well, it was April Fools Day. But Les Schirato, CEO of Cantorella Brothers, owners of Vittoria Coffee, is no fool. The ads received coverage on every Australian radio and TV channel. Discussion of the ads made all the major Australian dailies. Exposure spread to Canada, Hong Kong and Europe. The media monitor reports came in a box, not an envelope. Vittoria Coffee had never had such press. The silly thing was that Les had written that ad five years ago. For five years it sat in his desk drawer. Whenever he brought it out someone told him he couldn’t use it. It would attract the attention of the Trade Practices Commission. Vittoria was now the leader in its niche; it couldn’t do something as silly as play an April Fool’s joke.

“ Leaders are different. ” “It took me several years of hard work,” Les told me, “to have the courage to listen to myself and ignore the blockers.” It takes a strong sense of self to listen to our own council. To take the risk of being different. It takes strong character to follow our own lead when everyone else tells us we are wrong. It takes great judgment to take calculated risks.

by Margot Cairnes

But isn’t this what leadership is all about? Leadership is about being out in front. Being ahead of the crowd. Leaders are different. To be different and effective, leaders need to know who they are; what they want and where they are going; to have emotional strength to be in touch with the people around them; the character to build and maintain relationships; the judgment to take risks. These are very human capacities. Capacities forged by our personal beliefs, our individual value systems, our life experiences and our emotional health. All these things in turn rest on the decisions we made when we were growing up. It was as our brains were forming and maturing that most of the key frameworks of our character and judgment were laid. The old Jesuit dictum of “Give me a boy until he is seven and I can shape him for life” is very true. So a big part of developing character and judgment - the key to good leadership - is raising awareness as to early decisions that are still shaping our thinking, acting and being. Margot Cairnes is an international leadership strategist. She delivers exceptional results through a unique approach to identifying and solving the issues facing organizations at times of great change, particularly implementing mergers and acquisitions. In addition to major change problems Margot acts as a mentor to leaders of global, commercial organizations. This confidential service provides a safe forum for leaders to explore the issues and beliefs that create and limit their success. You can visit Margot Cairnes web site at http://www.MargotCairnes.com or e-mail her at: cmuzard@ changedynamic.com

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MISCELLANEOUS

What Value Quality?

Most Hospitality Operators Use the Term “Quality” In their Advertising. What Exactly Does that Mean? by John R. Hendrie

ost Hospitality Operators use the term “Quality” somewhere in their advertising and promotion. What exactly does that mean? One would compile multiple responses, as Management tried to define “Quality”. The same would be said for their Staff, and, just as importantly, the Guest. We all have different perspectives. Hospitality invites a Quality Experience, but, if expectations are not met, you have a disappointed Guest, reduced Revenue, unhappy employees and a deteriorating reputation. So, what is the Value of Quality: the Concept, the Experience and Reward, and how does this relate to your Hospitality Business? The Basics: Quality is a Process. There are Performance Standards created, communicated and implemented. The Standards are reviewed constantly to stress Continual Improvement. Success Stories are heralded. Problem Areas are immediately addressed. Steady “feed back” is required. This is not a one day exercise. Quality must become integral to your Business Performance.

anisms, like Comment Cards; Mystery Shop Services; Assessment Companies; and formal Guest Satisfaction Systems. They are all meaningful. In Summary: The Guest Experience all begins with Expectations, and success is built upon how well you deliver your product/service in relation to those Expectations. Performance Standards are the Hospitality Norm, and they “frame” the experience. Your adherence to these Standards has definite Value in the Marketplace, particularly if your efforts have been validated , designating your Operation a Quality Destination. You also have at hand mechanisms to continually improve your performance, for Guest Satisfaction “feed back” is critical and actually creates Customer Loyalty opportunities. Does Quality have Value? Absolutely. It is the bedrock of our Industry. Quality establishes your Reputation, becomes your competitive edge, and results in increased Revenue. Let’s restore that Consumer Confidence!

The Bottom Line: Does your definition of Quality translate to the Guest’s expectations? Hospitality Operations are boldly diverse. We present to the Consumer various locations, architecture, ambiance, price, amenity, and activity. When they make a reservation – book a room, a table, or a ticket – the Guest has an Expectation. Now, we must deliver and not create a disconnect, because we may be at cross purposes with our Guest and their concept of Quality. The Assignment: How do we create a “common ground” to meet these expectations and avoid the false steps in fully serving our Guest? The Quality Process begins with recognized, reasonable Hospitality Performance Standards. ALL parties understand cleanliness. The environment you represent must be clean and not assault the five senses. We need to feel safe and secure. We require certain “creature comforts”. We look for our needs to be attended with some courtesy, accuracy, speed and pleasant attitude. Finally, we expect the facility to present an acceptable appearance / condition. These elements are how you will be judged by your Guest. They represent the Benchmarks for a memorable Quality experience or not. These Performance Standards are the foundation, and the Guest needs to know you are serious and sincere. Particularly for those Destinations which are Family oriented, recognize that the greatest influence on where the Family will stay, dine and recreate is the Mother, and she holds Quality Standards dearly. The Report Card: The success of a Process needs to be measured – a Performance Evaluation. Where do you rate with these Hospitality Standards? Do you deliver, and, just as importantly, does your Staff ? Your Quality message must be communicated daily. Your Staff must abide by your Message. Clear guidelines, need to be in place, practiced and assessed. Attention to detail and meeting the Guest’s needs are the Mantra. There are many means to evaluate your Performance: the personal relationship you have with your Guests; in-house mech64 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

John Hendrie, is CEO of Hospitality Performance, Inc., a full-service hospitality consulting company. With a strong background in Hospitality, Human Resources, Organizational Effectiveness, and Communications, John has devoted his career to establishing Standards of Excellence across varied businesses. For more information, please visit www.hospitalityperformance.com

Top 7 Ways to Keep Your Team Motivated by Kelly Robertson

1. Involve them. Many employees want to be involved in the ongoing development and progress of their company. Plus, they often have insightful ideas that can make a significant difference in the company. 2. Communicate. A frequent axiom in business is, “No news is good news.” However, employees want regular updates on the progress of the business and their personal performance. Use memos, email, telephone, and one-on-one and group meetings to keep your team apprised of changes, updates, new products, etc. 3. Celebrate individual and team performance. Catch people doing something right and focus on recognizing excellent performance. Provide positive reinforcement, issue awards, use a corporate newsletter to highlight specific achievements. Send thank-you cards and congratulatory notes, make phone calls, and send emails. 4. Set challenging goals. My experience has taught me that people strive to achieve what is expected of them. If you set challenging goals your team will work hard to accomplish them, providing of course, they are realistically attainable. 5. Give them the tools to succeed. No team will stay motivated if they do not have the necessary tools `required to do their job. This includes; equipment, internal support, inventory, marketing materials, training, etc. 6. Manage poor performance. Your team expects you to manage individuals who do not perform to standard. However, many managers ignore these situations because they are afraid to deal with them, hoping instead that the situation will resolve itself. It never does and this “blind” approach affects profitability, causes higher turnover, and generates low morale. 7. Believe in your people. The majority of people want to do well – very few individuals approach a job with the intent of screwing up. Yet, many managers run their business thinking that employees must be treated with a “watchdog” mentality. They install hidden cameras, monitor email, and set up procedures that require employees to get multiple approval signatures for decisions. Kelley Robertson, President of the Robertson Training Group, works with businesses to help them increase their sales and motivate their employees. He is also the author of “Stop, Ask & Listen – Proven sales techniques to turn browsers into buyers.” For information on his programs, visit his website at www.RobertsonTrainingGroup. com . HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 65

HUMAN RESOURCES

Creating a More Productive Workplace by Doug Hissong

oday all commercial organizations large and small want to make their work environments more productive. They know that’s the key to competing well in today’s tough environment. They know their employees are their most important asset and that those employees can do more. But what are the keys to making employees more productive? Let me suggest a few.

Raise the expectations You probably know the story of Pygmalion from Greek mythology. Pygmalion was a sculptor who wanted to create a statue of the most beautiful woman imaginable. He worked painstakingly to create this exquisitely beautiful, ivory statue. When completed, she was so beautiful that he fell in love with her and became obsessed with her. In answer to his prayer, a goddess turned the statue into a living woman whom Pygmalion married. Pygmalion expected the statue to be beautiful, and it was. The “Pygmalion effect” refers to the fact that things tend to turn out as we expect them to be. This is not merely a statement of good fortune. It means that our expectations cause things to work out that way. It’s a self-fulfilling prophecy.

Align the rewards What does your organization truly reward employees for? Do the rewards go to those who avoid screw-ups by clinging to a conservative status quo? Do they go to the innovators, visionaries, and true leaders? Do long-service employees feel good about the personnel actions they’ve seen over the years? Where does your organization’s leadership or management style place the emphasis? Does your “management by objectives” emphasize “bean counting” and easy targets over less tangible improvements and stretch goals? Does your “management by exception” emphasize hunting for “who’s screwing up today” and cautious CYA, creating an atmosphere of fear? Do you cling to management based on a “Theory X” view of your employees in spite of evidence that they’re “Theory Y” employees (as by far most employees are)? Whatever kind of behavior you reward most is the kind of behavior you’ll get. Is the behavior you’re fostering what’s truly best for your business? Does it lead to maximum productivity? Is there a more people-related leadership/management style that will be more effective?

The story of Pygmalion was the basis for Bernard Shaw’s play “Pygmalion”, which in turn gave rise to the musical play and movie “My Fair Lady”. Professor Henry Higgins falls in love with the beautiful woman he “creates” from a poor, common flower girl. She had become the true lady that he had expected her to become. Expectation had become reality.

Focus on attitudes

The Pygmalion effect has been demonstrated in a number of studies by psychologists. People definitely respond to our expectations. They behave the way we expect them to behave. I bet you can think of examples you’ve seen; I certainly can. What a powerful tool this is for us! If you want to get people to do more, raise your expectations. Don’t tell them what you want or hope for. Let them know what you expect. Do this in a very positive way. Let them know that you respect them, that they’re very capable, and that you know (expect) that they will come through with the best. They will.

Attitudes are extremely contagious. I like the bumper sticker that says, “Courtesy is contagious. Let’s start an epidemic”. Courtesy is an attitude. We say that someone has “infectious enthusiasm”. Enthusiasm is an attitude, and it’s definitely infectious. And Emerson said, “Nothing great was ever accomplished without enthusiasm.“

Employee performance is very rarely limited by abilities. It’s limited by attitudes! Attitude is the paintbrush of the mind; it colors everything. A person with a positive, “can do” attitude is bound to be more productive than one with a negative attitude. And each of us has absolute control over his attitude! We choose it.

Is criticism prevalent in your organization? Benjamin Franklin and Charles Schwab are two highly successful individuals who have said that they don’t criticize because it’s not effective. It doesn’t help anything. Praise and encouragement help people and improve productivity. All attitudes, both positive and negative, are infectious or contagious. They’re passed from one person to those around him or her. One person can pull a whole group up or down with his or her attitude. We need to be alert to what we and others are passing around, and to control it. We need to keep a positive and enthusiastic attitude and pass it on to everyone we can. We need to work to make positive, enthusiastic attitudes permeate our organization. Doug Hissong has a doctorate in engineering and has worked over 35 years in industrial companies. His experience has shown him how important interpersonal and communication skills are to effective job performance (as well as effectiveness in non-work endeavors). He feels so strongly about it that he has collected his thoughts and a myriad of stories supporting them into a book titled Positive Impacts, (subtitle “Discovering the keys to better interpersonal and communication skills”). He calls it “food for thought that tastes good, like a healthful dessert.” He can be reached at doug.hissong@ sbcglobal.net.

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FOOD & BEVERAGE

Last Words Letters to the Editor

“This magazine is a very good thing, especially for Maldives. I was in Maldives the last four years and we didn’t have such information earlier. I wish you all the best and hope people will use this for their benefit.” Saman Weerasinghe, F&B Cost Controller, Al Murooj Rotana Hotel & Suites, Dubai, UAE

“Your magazine is fantastic; indeed this will help develop the tourism industry in the Maldives.” Ali Moosa, Cashier, Sun Island Resort & Spa

“You are doing a great job for promoting the tourism business in Maldives! Keep it up!” Shameem Ibrahim, Managing Director, Shell & Sand Maldives Pvt. Ltd.

“I am currently studying Travel, Tourism and Hospitality and find your magazine very helpful and a useful resource to my studies. I believe that even after my studies, the magazine will always help me stay up-to-date with this industry.” Aishath Lahufa Asim, Student, Male’

“This is the first time I have seen a magazine full of information for any age and with great tips for one’s work place. It is a very good magazine for any staff. I love it and I’m sure I can use it in my work place as well.” Ali Shiyam, Customer Service Executive, Maldivian Air Taxi

“It’s simply the best.” Aishath Nuga Abdul Gadheer, Deputy Officer, Bank of Maldives

“I am an avid reader of your magazine and I deeply salute the brilliant ideas incorporated with useful schemes found in every issue. It’s worth reading from cover to cover! All your topics had been affluent and I am sure it has brought an enormous leap to the hospitality readers.” Jazzie L. Ranque, General Manager’s Secretary, Kuredu Island Resort

“One of the best knowledge review magazines. Superb articles! I lived in Maldives for six years and still want to read your magazine.” Tilak, Executive Chef, Taj Hotel Company, Sri Lanka

“Hospitality Maldives is the best school in the Maldives for educating the industry. Keep up the good work!” Mohamed Waheed, Assistant Manager, Summer Island Village

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

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