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Andrew Grahame, Dormy House Hotel CEO Blue Skies Up Ahead! Will London Hold Strong in the Next Financial Quarter?
The F&B Trends Transforming the Industry The Secret Behind Hilton Worldwide’s Success The Importance of Independent Design
A Sneak Preview to this Year’s Show
All Change: HR in 2015 Asking For Feedback The Impact of Staff Attitude on Revenue
Hotel Industry Magazine Q4 2014 – ISSN 2051-0632 Editorial Editor: Lee Jamieson Email: editor@hotel-industry.co.uk Editorial Contributors: Anne Blackburn, Camilla Butler, Caroline Cooper, Chantel Gohil-Gray, Andrew Grahame, Lee Jamieson, Vicki Jamieson, Chris Johnson, Conor Kenny, Jonathan Segal, Graeme Smith Hotel Data Partners: BDO, Euromonitor International and Zolfo Cooper Digital Web: www.hotel-industry.co.uk Data Centre: www.hotel-industry.co.uk/data Twitter: @hotel_industry Facebook: www.facebook.com/hotel.industry Jamieson Media Hotel Industry Magazine and hotel-industry.co.uk are published by Jamieson Media, a UK Registered Partnership Website: www.jamiesonmedia.co.uk Email: contact@jamiesonmedia.co.uk VAT Registration No: 127 7969 65
The opinions and views contained in this publication are not necessarily those of the publisher. The publishers regret that they cannot accept liability for error or omissions in this publication, however caused. All information in this publication is provided for general use. The publishers advise all readers to seek specialist advice before acting on any information contained in this publication. Readers are also advised to directly contact advertisers and companies mentioned in this publication in order to qualify the claims made, adherence to regulation and financial security. No material in this publication may be reproduced in any form without the prior written permission of the publisher. © Copyright 2014, Jamieson Media
Hotel Industry has always been about getting the best information to UK hoteliers. With that in mind, I’m pleased to announce the introduction of a new legal and hotel compliance tool: Manager Flow. For just £16 per week we will help you through those tricky legal compliance issues with telephone support and online legal info.
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I have had the same make of car for 12 years.
not startled when I get into the car who their guests are, what makes having played the Spice Girls too loud them tick and why they are visiting. when I parked up. On average I change it to the latest For example, if a chap is a Porsche model every two years and I am The best one ever is the boot release fanatic he will not be the slightest bit always amazed by the that works by waving my foot under interested in Gok Wan’s kitchen enhancements. It gets quieter, the back of the car when my hands feature in Home and Garden; he quicker, easier to drive, more are full – genius! wants to see smoking Panameras and economical and there is the wonderful souped-up 911s ... his wife on the array of gadgets, from cameras to Hotels need to think more like car other hand may be quite fascinated cruise control. companies. by Gok’s pots and pans and will be on the John Lewis website in a flash! I really do feel that there is a group of Time for Change people in Munich that assemble Men are kids at heart, so in the Dormy around a table once a year I know so many hotels that are loos we leave remote control cars and specifically to make life easier for me. unchanged in 20 years and who helicopters for them to play with. At wonder why they aren’t full. Dormy, we have signs that say I can imagine their conversation: “I “Please walk on the grass” rather than know, if it’s raining then let’s have the Hotels need to seduce, entertain and “don’t”. Grass is for walking on. If it rear wiper go on automatically when emotionally connect with their can survive Beckham’s right foot, it he selects reverse,” says one. residents. They also need to think can certainly survive an after-dinner about ways of surprising and stroll. His colleague chimes in with, “We delighting their customers, creating as could also have the nearside door many “I wasn’t expecting that!” Fun, Fun, Fun! mirror move down so that he doesn’t moments as possible. kerb his wheels when parking.” They Hotels should be about fun. We even turn my music down so that I am Most importantly, they need to find out spend the week stressed at work,
New Interview Questions
hardly seeing our families, worrying about the Middle East and hoping interest rates stay where they are – do we then want to stay at a hotel that takes everything too seriously?
Signage is a key opportunity. What is the point of a “Staff only” sign? The worst that can happen is that someone walks in and realises they shouldn’t be there.
Hotels also need to employ fun people and need to ask different interview questions. The classic question: “What do you like about hospitality?” elicits the response: “I like to meet people.” The question needs to be “how would you entertain our guests and make them smile?” If they have to think about it too long, simply shout “Next!” and hand them their coat.
Our team members are employed for will, not skill. Most have a The stress then builds because I’m At Dormy House, the sign warns mischievous twinkle in their eye and watching Fiona Bruce talking about “Beware of the Staff” and then when some are a bit unpredictable and growing unease in Gaza and I daren’t guests meet our staff they realise that edgy. I like that because it’s even put my feet up on the furniture ... they are the most natural, warm and spontaneous, from the heart and very and why should I need to put on a tie genuine they have ever come across. engaging. to qualify for a G&T in the hotel bar?! We have a store room for mops There are two phrases hotels should Guests who are made to smile come (every hotel has one of those, maybe ban. The first is “Let me just check back: that’s a fact. And hotels need to two) with a sign that simply says with my supervisor.” Please empower take more time injecting the fun “Nothing to see here.” There isn’t. And your team to sort me out chips instead element. I smile every time I see it. of mash! Please don’t make the
waitress call her manager who then produces a raft of paperwork tracking the request so that it can be fully discussed at the next Heads of Department meeting. No More Meetings!
1. Maintain Perspective Look at everything you do from a customer perspective 2. Innovate Innovate and don't become stale 3. Guest Contact Stay in touch with your guests 4. Humour Maintain a sense of humour in and make your customers smile 5. Empower Empower your teams to make decisions
Talking of meetings, stop having meetings; keep your teams on the floor where they belong ... If they wanted to have lots of meetings and get nothing done they would work in local government! The next phrase is “Checking in?” Here they are, the lovely Smith family, stressed Mum, Dad, kids, dogs, cases, pushchair grasping a letter of confirmation ... I would say it’s a pretty safe assumption that they are here to stay and not passing through. My other guess is that after the journey they have had on a Friday evening, they do not want a wake-up call, they can’t decide what newspaper they want and really don’t care when breakfast is served until.
Car companies are also very good at keeping in touch with their customers; hotels generally are not. A hotel can launch a new restaurant, refurbish bedrooms, take on Chef who is ace with an octopus and can do wonderful things with a chicken but they just don’t bother to tell their customers. Some may like octopus. When a car needs to go to the dealer it tells you. First you get a “service in 6000 miles” message, then later an amber light and then the dreaded red light which effectively means stop now! Hotel guests have no such prompts. A little note doesn’t pop up on the TV whilst they are trying to work out why everyone in Eastenders is either fighting or crying saying “Dormy stay due in 30 days”. There isn’t an app that does this either. Yet. For me, the mark of a great hotel is when the return car journey is dominated by conversations about when and with whom they will return.
I recently heard a story of a wedding couple arriving at a very nice hotel for their wedding night only to be asked: That’s the desire we as an industry “Do you have a reservation?” need to create.
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High occupancy has ruled the roost in the last quarter, as UK hoteliers in London and regions reaped the rewards of the rise in tourism. July saw occupancy in regional hotels increase by 3.0% to 82.9% as the Commonwealth Games in Glasgow and the British Open in Liverpool brought an influx of spectators. And despite an increase in supply with a number of high-end hotel openings, London continued to perform well with a high occupancy rate at 86.1%. As occupancy was high, room rate in the regions increased by 11.1% to £64.30 and in London by a 1.3% increase to £139.23.
More Occupancy Data
Regional rooms yield stood at £53.28, up 14.4% and yield in the capital increased 0.3% to £119.88. Increased foreign tourism in London meant that hotels in the capital went on to achieve the highest occupancy rate for the month of August since 1999. Occupancy figures for the UK’s capital increased by 2.3% in August 2014, to 87.2%, while room rate was up 3.0% to £133.90. As a result, rooms yield grew by 5.3% to £116.76. Regional hotels also had a strong month with rooms yield up 11.7% to £52.22 when compared to the previous year. Occupancy remained high at 81.7%, an increase of 3.8%. The strong demand also contributed in pushing room rate up 7.7% to £63.95. More Rate Data
In September, UK hotels performance was boosted by good weather, a healthy mix of corporate and sporting events, and also the NATO Summit in Wales. Strong demand was the main driver of results with regional hotels experiencing a 4.7% increase in occupancy to 83.7%. This helped to push average room rate up by 9.9% to £64.99, and resulted in double digit rooms yield growth (up 15.1% to £54.39). London also saw demand continuing to grow (up 2.9% to 89.1%) in spite of the recent increase in new supply. Rooms yield for the capital was up 2.2% to £119.84 despite room rate being fairly stable at £134.48 (-0.6%). Strong occupancy is great news for the hotels sector and the knock-on effect on room rate hints at growth in the year ahead. UK hoteliers can feel confident about the health of the industry, as the figures continue to show an upward trend.
Dig deeper into BDO’s figures in our interactive Hotel Industry Data Centre. Benchmark your occupancy, RevPAR and rate by location and sector with our interactive graphs and visualisations. Discover More: www.hotel-industry.co.uk/data
More RevPAR Data
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Photo: VisitEngland
Choosing where to invest in hotels is a complex process of balancing expected demand against supply and understanding future local, regional, country and wider issues that may affect the success of the investment. Our quarterly analysis provides insights into some of these factors. What to Expect in Q4 Pipeline Supply data shows that 3,690 rooms are due to open in the UK in Q4 2014, slightly down from 3710 last quarter. Of these, the vast majority will be either budget or 4* as these make up 84% of the total - 58% of planned rooms are budget grade and 26% of rooms are 4*. The remaining rooms are made up of aparthotels (6%), 5* hotels (6%) and 3* hotels (4%). This quarter shows the continued rise in the dominance of budget and 4* hotels in the near-term pipeline. The proportion of budget hotels rises from 51% to 58% this quarter, while the proportion of 4* hotel rooms is still in second place, but has fallen over the past three quarters from 45% to 36.5% and now down to 26%. Five star hotel openings are up slightly at 6% against 4% last quarter. Looking at the pipeline for specific cities, London will see the most new supply with 45% of the total city rooms, followed by Aberdeen and Manchester. ‘Other’ locations make up the next largest segment, providing 30% of capacity. This was 36% last quarter, showing that new rooms are slightly more concentrated in major cities. Compared with last quarter, imminent London pipeline is relatively static after a fall six months ago, possibly indicating that London is becoming oversupplied or that prices have kept developers out of the city. Of the regions , London and the South lead
Rooms Opening in Q4 2014 By Major City Pipeline Data: AM:PM
the way accounting for 70% of all new rooms followed by the North, Scotland and Central making up the total. Although Scotland has consistently followed London and the South, the North takes over during the next quarter, with hotel openings across the Pennines from Liverpool to York contributing 16% of all new rooms. London still takes the largest share by region, with 45% of the next quarter’s pipeline, followed by the South and the North. Openings in the South remain at around a quarter of all new rooms, the same as last quarter. The proportion of new rooms planned for Q4 in Scotland has fallen significantly from 13% to 8% and may be due to previous high supply levels. London has only one new 5* hotel opening planned for the next quarter and it’s in Old Street, not a traditional location for that type of hotel. There is a shortage of suitable properties in London and, when they do come to market, the cost is high especially in prime locations. For some hoteliers this means setting their sights elsewhere. In this case the choice of Old Street may be a smart move. The area is at the centre of the digital economy in London, on the borders of the City, with a vibrant atmosphere and an exciting retail, restaurant and bar scene. For other hoteliers, the difficult investment market means switching to locations in the South with access to London. The total number of rooms due to open this quarter is very similar to the previous quarter– 3710 in our previous report and 3690 this quarter.. In terms of number of hotels due to open, next quarter’s figures are also similar to those of the previous three months reflecting the long term nature of hotel investment decisions.
Rooms Opening in Q4 2014 By Region Pipeline Data: AM:PM
Photo: VisitEngland/Alex Hare
Changing Visitor Numbers Visitor numbers, both from within the UK and inbound, determine the level of demand and, to some extent, the average revenues per available room. Internal visitor levels tend to reflect GDP, as economic activity drives business travel in particular and, among consumers, the choice of holiday location. ONS data also gives clues as to future visitor behaviour. September’s ONS data showed that the economy expanded faster than previously thought over the second quarter.
personal credit bubble are also growing. UK exports have fallen slightly and the current account deficit has widened to above 5% GDP, a level widely thought to be unsustainable. Combined with the problems in the Eurozone – our largest single trading partner – an improvement in exports is unlikely in the near future. Personal debt is also beginning to cause concern in the UK, with the Bank of England naming the high levels of household debt as a key risk to the recovery.
Consumers have increased their exposure to unsecured debt for eight The UK economy grew by 3.2% in Q2 successive months. One of the drivers 2014, 0.1% higher than in the behind this increase is the ‘feel good equivalent period last year. This is the factor’ created by increasing house best economic performance for six prices. However, if interest rates rise years. as they are expected to do in 2015, people may struggle to meet interest The economy also recovered sooner repayments on mortgages and other than previously thought, with GDP debts. returning to pre-crisis levels. Current political and geopolitical However, concerns over slow uncertainties cast further shadows on economic growth and a possible future growth in the UK economy.
The latest ONS data for Overseas Travel and Tourism shows that visitor numbers were up 2% in July and 5% between May and July but visitors were spending 4% less per trip. Visitors from Europe are 9% up this year, with 5% growth in business visits, 9% growth in holiday visits and visits to friends and relatives up by 9%. The strong pound may be tempting UK residents to take more foreign holidays as ONS data showed 4% more visits abroad but 5% lower spend compared with the previous year. This might be due to favourable exchange rates, an increase in visits to friends and family and to choosing to visit cheaper countries. It is also worth noting that the long hot summer of 2014 also had a positive impact on staycations. Despite these clouds on the horizon, the immediate future still looks very encouraging and there will are good prospects for continued growth in demand for hotel rooms in the UK.
Budget Rules
four years. Jobs associated with tourist accommodation have increased by 7.1% in that period.
At 58% of the total Q4 scheduled openings, the majority of new rooms are budget rated, as was the case last At the same time, employment across quarter. the UK has fallen and we now have the highest employment rate since However budget hotels make up only 2008, with nearly 600,000 job 43% of Q4 openings, indicating that vacancies unfilled. budget hotels have more rooms than the average hotel. ONS data shows that 40% of jobs in tourism are part-time, making the Premier Inn continues to dominate the sector unique. budget hotel sector for the next quarter, opening 1,290 or 46% of the When there is a shortage of jobs it is new budget rooms (including one hub easier to fill part-time positions, by Premier Inn hotel). The remaining however, as employment rises it may budget hotels expected to open in the become harder to find the right staff next quarter are Travelodge with 268 for UK hotels. rooms, Motel One with 291 rooms, tune hotels with 236 rooms and At the same time, the minimum wage Holiday Inn Express with 21 rooms. rises every October and the Campaign for a Living Wage is gathering supporters, with the Mayor Hotel Jobs of London encouraging all local As the number of hotels continues to employers to pay the London Living grow, so does the number of hotel wage. jobs. So far only 200 have risen to the According to data from ONS, the challenge, but the hotel sector, number of people working in the especially in London, may bear the tourism sector has grown twice as fast brunt of these extra costs. as in any other sector over the past
hub by Premier Inn. Photo: Whitbread plc
Transaction Trends While a number of single properties have been sold, there has been a significant increase in the number of portfolio sales this quarter compared with the previous two quarters of the year. The reasons for this surge in sales must include the high prices currently being achieved. Owners are realising the gains in the value of their properties. The lack of suitable properties is also contributing to the high values achieved, partly by creating ‘price wars’ as buyers compete to acquire new sites. Among the single hotel sales are two which went to Chinese investors: Beijing-based Reignwood Group bought London trophy Ten Trinity Square and will turn it into a luxury 98 room hotel with partner Four Seasons Hotels and resorts. It also bought the Wentworth Club, which has 12 rooms. Chinese-government owned Greenland Holding Group invested £1.2 billion on two London properties including the former Ram Brewery site
in Wandsworth, which includes plans for a hotel. We can expect to see more of these as Chinese government encourages investment in gateway European cities, especially London and Paris, and Chinese investors see perceived value as well as the opportunity to acquire ‘Golden Visas’ where certain types of property acquisitions automatically confer EU residency. For the next quarter we would expect the hotel sector to be buoyant and for transactions to continue on an even keel. High levels of competition for London sites are likely to continue, although whether the same volumes of portfolio sales will continue in Q4 is harder to predict. Navigate tricky compliance issues Reduce legal costs Avoid costly employment tribunals
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The quality of a hotel’s F&B offering is often a key driver of profitability; long gone are the days when running a hotel was purely about beds! Yet, while many hoteliers rightly obsess over bookings and beds, this valuable additional income can sometimes be overlooked. The size of the opportunity ranges from an additional cup of coffee or aperitif, to hoteliers adding more than 50% to their revenues per guest through a high-quality and varied F&B operation. In order to do this, it is vital that we stay on top of our game. We have to create environments, and food and beverage offerings, that people want, and which play well against the many and varied rival options available to guests in the hotel’s local markets.
The attraction is that it brings absolute This is also reflected in hotels, where focus, with partners concentrating on the key is having offers that speak to their expert area: hoteliers on beds, this broad spectrum of demand. F&B experts on food and beverage. Flexibility is key, as is warm, unfussy Consequently, it is not uncommon for service that engenders a relaxed but a hotel to see a material uplift in fun environment, where people feel average room rate and nightly they can let their hair down. occupancy when working with these external specialists. 3. Eat in a Bar, Drink in the Kitchen Such partnerships tend to drive footfall to the hotel, meaning that you get a greater variety of guests, many of whom are not just in the building because they have a room reservation. 2. Casual Dining and Informality A sit-down meal or a high-quality dining experience used to mean white tablecloths and silver service but nowadays, we see little correlation.
Linked to informality, food and drink environments are completely merging. If we go to a restaurant, we will have a cocktail. If we go to a bar, we are just as likely to order food – be it something light and quick, or something more substantial.
The small plate (or tapas-style plate), long the preserve of the bar, is much more common in a restaurant environment, and the reverse is true in bars, which are majoring on Therefore, we have to know what’s The growth of chef-driven restaurants extensive food menus. going on, and to this end, here are is slowing down and the impact of five key trends that we see emerging casual or informal dining is being felt This blurring of the lines is reflected in in the hotel sector: everywhere; both in hotels and across design – restaurants are making a the food and beverage sector. bigger play of their bar and more bar operators are introducing big, centre1. Do You Need Partners? People crave informality, whether it’s piece open kitchens. We are seeing a lot of hoteliers the food itself or the style in which it’s partnering with food and beverage served. People still want high-quality In America they speak of this trend specialists. but without so much of the pomp. reflecting consumers’ desire to “eat at the bar, and drink in the kitchen”. It’s These arrangements vary from People’s food repertoire is expansive, placing greater demands on front-ofconsultants offering ad hoc advice to which is reflected in the abundance of house staff, who at the premium end full joint ventures, with entire food and choice available today, and the of the market, are expected to have beverage programmes outsourced to growth of (most notably) noodle, extensive knowledge of both the food a specialist operator. pasta and salad bars. and drinks menus.
4. Vibe Dining
5. By the Bottle, at the Table
We’re big believers in vibe dining, which combines food, drink, atmosphere and music - and often sees guests arriving long before their table is ready, and staying with us well beyond the meal. They can enjoy all the elements of a night out under one roof.
Two big trends combined are impacting the way people order drinks.
Our upscale STK steakhouse brand is built on vibe dining – we place special emphasis on the bar area (where the party starts), we play music slightly louder than would be the norm and employ a DJ to “read the room” and ensure we play the right music to the right crowd. We know that if the DJ finds the right music, our guests stay with us for longer, they spend more on food and extra drinks, and they transition seamlessly from dinner mode to party mode. The power of music is often over-looked, particularly in hotel F&B environments.
Sharing a bottle used to be the preserve of the wine and champagne category, but now it is happening across the drinks market, notably in cocktails and spirits. This is driven by a greater desire to share and also by the on-going move to premium brands. Hotel bars and cocktail bars are leading the way in creating ‘drinking experiences’ which are bespoke to their venues and offering VIP table service, which creates a unique experience for the guest. This trend emphasises the need for us to focus on luxury and we need to be ahead of our game in making our customers feel like they are ‘number one’.
By bringing in some of these services to your outlets, you can develop a vital USP! The trends outlined above are all linked to informality and fun. Food, drink and entertainment are merging. This presents an opportunity to broaden our hospitality offerings and widen our profit potential. Don’t be scared to try something a little out-of-the-norm, review your competitors and, most of all, make sure your customers are really having a good time!
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Claiming a 9% share of room revenues in the UK travel accommodation market, Hilton Worldwide occupied the second spot behind Premier Inn in 2013. The UK is a key market for Hilton Worldwide and sales have grown steadily as it has expanded its portfolio and grown its market share, up from 7% in 2009.
mid-scale (Hilton Garden Inn and Hampton Inn).
The remaining outlets are spread across the UK’s smaller towns and cities.
The best represented brand in the UK is Hilton, which accounts for 60% of Both of the company’s luxury brands its outlet numbers. are also present in the UK, with Diversification has been the key to Waldorf Astoria located in Edinburgh growth. In 2007, Hilton only had three In the UK travel accommodation and a Conrad hotel based in the heart hotels not under the Hilton brand in market, Hilton was in second place of London (Westminster), where Western Europe. But, by 2014, the with a 7% share of room revenues in rooms start at £400 per night. number has shot up to 107 non-Hilton 2013. brand hotels. DoubleTree Despite slight growth in sales from This has played out in the UK, with £445 million to £447 million, its share Although Hilton and Hampton Inn the DoubleTree brand going from dropped slightly during 2013, as the posted respectable performances strength to strength. brand underperformed at category over the last few years, the brand that level. is really driving company level sales is DoubleTree. Hilton: Largest Number of Outlets Mid-scale Hampton Inn also saw a As of 2014, Hilton Worldwide has just sales increase in 2013, although its DoubleTree more than doubled its under 120 establishments across the share of room revenues remained sales between 2009 and 2013 to £91 UK. All three of Hilton’s brand static at 0.2%. million. portfolios are present: luxury (Waldorf and Conrad); upscale full-service It has 14 outlets across the UK. Of In 2013, DoubleTree had a 1% of (Hilton and DoubleTree); and focused these, only four are in London, and share of room revenues in the UK, -service, spanning upscale and upper only one of these four is in Zone 1. and by 2014, it had 24 UK locations. Diversification
Company % Shares of Room Revenues (UK) Company Whitbread Plc Hilton Worldwide InterContinental Hotels Group Plc Travelodge Hotels Ltd Accor Group Best Western International Inc Marriott International Inc Wyndham Worldwide Corp Jarvis Hotels Ltd Hilton Hotels Corp Others
2008 7.7 6.5 4.2 4.5 3.3 3.5 1.0 6.9 62.4
2009 8.3 7.4 6.2 4.6 4.7 3.0 3.4 1.1 61.4
2010 9.3 7.9 6.5 5.3 4.7 3.1 3.1 1.0 59.1
2011 10.6 8.6 6.7 5.7 5.6 3.5 3.3 1.1 54.9
2012 11.2 8.8 6.8 6.0 6.1 3.7 3.4 1.2 52.9
2013 11.9 8.8 6.9 6.3 6.2 3.8 3.5 1.1 51.4
Total
100.0
100.0
100.0
100.0
100.0
100.0
Source: Euromonitor International
Hilton’s 10th London hotel in Islington
DoubleTree Powers Growth The key to UK growth in recent years has been the DoubleTree brand. The name is used by independently owned hotels, operated under a franchise. In August 2014, DoubleTree opened its 10th London hotel in fashionable Islington. This followed hot on the heels of the recently opened DoubleTree Chelsea. Both deals operate under a franchise agreement with Jury’s Inn. DoubleTree Islington opened after a multimillion pound revamp and the addition of 143 new rooms, including 66 deluxe and 43 executive rooms, a new bar and business and fitness centre.
accommodation market bounced back They will also allow it to remain in 2013 after a disappointing year in relevant to a target group which is 2012. growing in importance, the Millennials, and which relies heavily on mobile In the second half of 2013, London phones. saw a strong increase in occupancy rates, as the economy gained Hilton Worldwide has focused its momentum and the UK was online strategy on driving traffic to its proclaimed to be outperforming its EU direct channels, both online and neighbours in terms of GDP recovery. mobile. All this was good news for the business segment in particular. Mobile Initiatives In August 2014, Hilton Worldwide platformed a number of key initiatives under the umbrella of customising guests’ experiences by utilising the latest technology.
It has launched a new enhanced app for its HHonors program. Mobile revenue doubled in 2013 alone, having grown eightfold since 2010. The company’s strategy on social media is focused on it being on fewer social media channels in order to deliver a more exclusive experience.
Hilton Worldwide is active on By 2016, under the company loyalty Instagram, Facebook, Twitter, and DoubleTree aims to offer a friendly, scheme, HHonors, guests will be able Google+, with a few brands on approachable service experience, to check in and select their room(s) YouTube, Linkedin and Weibo. exemplified by a chocolate chip from a computer, tablet or mobile. cookie being served to every guest on In April 2013, DoubleTree created a check in. Such initiatives will enable Hilton to channel on YouTube called Dtour, play technological catch up with where guests can select a location The openings in London leverage Marriott and Intercontinental Hotels and then upload photos, videos and industry trends, as London’s travel Group. travel advice.
Despite the focus on its own channels, Hilton Worldwide also works with online travel agents such as lastminute.com in the UK. More to Come Strong Q2 2014 figures saw Hilton Worldwide exceed RevPAR expectations and raise its full-year 2014 outlook.
be centred on the limited service urban hipster areas as well as quiet brands such as Hilton Garden Inn and out-of-town spots, and focusing on Hampton Inn. technological innovation, Hilton Worldwide has its finger on all the key In the UK, there are pipeline hotels trends. across its entire brand portfolio. However, with such a vast pipeline, Price sensitivity in the UK will be a care must be taken not to overstretch key barrier, but Hilton Worldwide’s and compromise on quality. focus on limited service as well as full service looks like a strategy that will pay off.
It looks as if current strategy is paying off for the company, both at global Reliance on internet booking will grow and UK levels. in importance over the short term and, here, the company will have to utilise And, there is much more to come in the internet and other technology as the next few years as Hilton an integral tool for growth. Worldwide realises its vast pipeline globally. Moving from full service to limited service, from top-end luxury to midT: In Western Europe, new launches will priced, keeping a visible presence in W:
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The Independent Hotel Show returns to Olympia this October (21 & 22) with the promise of even more insight, advice and inspiration for the UK’s burgeoning luxury and boutique hotel sector.
the industry, helping your boutique or Leaders in the Field luxury hotel stand out from the crowd. Gain insight and inspiration from the With categories including interior hotel industry heavyweights across a design, technology & software, audio range of subjects as the Independent & entertainment and health & Hotel Show 2014 tackles and wellness the show is home to a presents the hottest topics of the Now in its third year the show has wealth of products and services to sector. become the must attend event for help boost the profile and profitability anyone connected to the hotel and of your business. Design, technology, marketing and hospitality sector, featuring a one-stop business experts are scheduled to business platform of over 250 Confirmed exhibitors include: present a range of free to attend handpicked premium products and business seminars and panel Mulberry Home services, business seminars and discussions to help streamline the Tivoli Audio advice clinics. running of a profitable hospitality Smart Fire UK business and boost revenues. Coach House Discover the Best Airwave Europe Sessions run throughout the two-day Agentia UK Featuring a range of handpicked, show across two theatres. Frame Your TV premium essentials to equip your Toto hotel, exhibitors at the Independent For ideas, insight and inspiration, visit Richard Haworth Hotel Show represent the cream of the Business Theatre, sponsored by Abraham Moon & Sons.
Towergate Insurance, and the Innovation Stage, sponsored by software giant, MICROS. Highlights include a Q&A session with leading General Managers, Philip Newman-Hall from Le Manoir aux Quat'Saisons and South Place Hotel’s Bruce Robertson; along with an indepth discussion about the importance of brand and personality, led by James Lohan from Mr & Mrs Smith. Robert Nadler from Nadler Hotels and Julian Troup from Colliers International Hotels will also be looking at the ‘big picture’, reviewing the current state of the UK hotel market and offering insights into the opportunities and risks for hoteliers of all shapes and sizes.
The Hub, at the Heart of Hospitality Krassa and design journalist, Guy Dittrich, as a creative focal point to Let the freshest creative talent in the help draw businesses together at the hospitality industry inspire you to show. meet, talk and share ideas with your peers as The Independent Hotel Offering a relaxed and information Show showcases the rising design space for delegates to meet up, The stars of the sector. Hub promises to push the boundaries of innovative interior design. An innovative and inspirational central networking point, The Hub 2014 was Hansgrohe VIP Lounge designed by Nina&Co in collaboration with Anya Fennet. For a more intimate meeting, relax and network over a drink or two with Their winning concept is built on the key industry players in the Hansgrohe very idea of finding inspiration within VIP Lounge, a haven of calm at the the Independent Hotel Show and heart of the show. having that light bulb moment. Supportive business advice from Buell The design was selected by a panel The Buell Business Support Clinic of leading judges, including architect, offers a one stop shop for advice on Mike Stiff, product designer, Afroditi all aspects of business specific to the
With the UK’s definitive business event for the luxury, boutique and independent hotel market less than a month away, it gives us great pleasure to present our show preview; an introduction to some of the exciting elements and new additions you can expect to experience at this year’s show.
see, meet, build relationships and share knowledge with industry peers and thought leaders. To register simply visit independenthotelshow.co.uk
For those already attending don’t forget to reserve your space on one of our business seminars, tackling some of the hottest topics in the industry The event is free to attend and and featuring an array of offers unrivalled access to business leaders including contemporary hospitality Robin Hutson, James Lohan, thinking - whether it be trends, Fiona Duncan, Mark Fuller products or services that and many more. Or sign up for excite you most, the one-to-one advice at our Buell Independent Hotel Show Business Clinic to receive first devotes attention to all that hand guidance from some the impacts your business and sectors leading experts. ultimately your bottom line. We invite you to enjoy a Luke Perry, Event Director, unique opportunity to touch, Independent Hotel Show
independent, luxury and boutique hotel industry. Sessions are available on a one-toone basis, with specific advice offered for owners, operators, developers and investors into the sectors.
Independent Thought Series The Independent Hotel Show continues to spark debate within the hotel and hospitality industry, offering insight, advice and ideas from key industry leaders.
From customer service, interior design, food and beverage, revenue management, marketing and technology, a Buell representative will be at hand to offer first hand advice and solutions for your business.
In the weeks running up to the show a series of thought leading pieces have been published on:
For more information on the topics covered and to book your session visit:
The ‘Independent Thought' series will provide a collection of inspiring tips on how to develop and improve your business, whether you’re an independent, luxury or boutique hotel.
www.independenthotelshow.co.uk/ bbsc
www.independenthotelshow.co.uk/ IndieThought
Tuesday 21st October: 10:00 - 17:00 Wednesday 22nd October: 10:00 - 17:00 Location: West Hall, Olympia Exhibition Centre, Hammersmith Road, London, W14 8UX independenthotelshow.co.uk
Achieving an aspirational interior design scheme is often near the top of most independent hotels’ to-do lists. But, with increasing pressure and responsibility on the shoulders of general managers, making time for this can be difficult.
Refurbishment Cycles Hotel refurbishment cycles currently sit at between 5-7 years and, somewhat worryingly, 23% of hoteliers will only refurbish bedrooms and public areas when they begin to look tired. Exactly what defines ‘tired’ will undoubtedly differ from hotel to hotel.
However, there are ways for hoteliers to achieve a stunning look and feel on Without the reliability and stability a budget to ensure quality is always often offered by a chain, front of house. independents cannot afford to give the wrong first impression, whether With independent hotels coming in a online prior to booking or when guests range of shapes and sizes, and arrive. housing anything from 10 rooms to 300, a blanket approach to design is Times are a changin’ for hoteliers impossible, but there are themes that though. The number of hotels that run throughout the industry that Beacon Design Services and its shouldn’t be ignored. strategic design partner, Dakota
House of Design, have worked with on their interior design has trebled compared to two years ago (in 2012 only 25% of hotels outsourced their design and refurbishment ). This is due to a combination of factors including a rising confidence in the economy and a lack of capacity for hotel staff to manage these projects internally. This increase in outsourced design and refurbishment requirements reflects the greater competition within the industry when it comes to attracting guests who are no longer simply booking direct with the hotels themselves, but relying on reviews from online travel agents. Hotels must look welcoming from the
first click on Trip Advisor to ensure that premium rates for rooms can be secured, guest satisfaction is high and repeat custom is achieved. Outsourcing Design Hoteliers no longer have the time or capacity to manage such projects themselves, when there are more business critical tasks to consider, and now feel more comfortable in outsourcing design and refurbishment. Many clients who have previously managed this work internally have made the decision that their return on investment is much greater for them when outsourcing their design work, and their time is better spent on running their hotel operations. One of the main disadvantages of managing a design project internally is often the lack of “bigger picture thinking”.
A lot of hoteliers might be wary about putting a budget on the table due to fear of it all being spent ‘for the sake of it’, or it being deemed too low but, we need to know what we have to work with so we can make appropriate recommendations. There are different ways to achieve different looks and material choices can be altered according to budgets – it’s all about finding the right supplier, the right product and the right price so that the options put to customers are always achievable.
Using an external designer will help you plan to attract your future guests, not solely your current demographic. And, while internal projects tend to be more conservative, it is worth remembering that a lick of paint and soft refurbishment can often cost as much, if not more, than a more and both national and international extreme design change. influences can be introduced where relevant if a well networked and experienced design partner is chosen. New Ways of Looking The benefits of working with a third party supplier not only solve some of these challenges, but introduce a fresh pair of eyes to your hotel - a pair of eyes that can advise on not just the aesthetics but things like disabled access, the flow of the rooms and the needs of the next generation of traveller.
Ultimately, if you get the right team in place, you’ll be on the receiving end of a seamless journey, through any design project from conception to implementation. Supplier Leverage
The consolidation of purchasing through a limited number of suppliers They should completely understand should also be taken into account what it is that guests want and expect when managing your project and from a hotel room – beyond the deciding on your requirements. traditional kettle and trouser press. Through working with a third party or Décor will also be looked at more purchasing organisation you not only operationally, space will be optimised benefit from negotiated pricing, but
You need to choose a design partner who is willing to get under the skin of your business, understand your requirements and respond to them in line with the brief – rather than go off on a tangent in a way that would never be appropriate for your hotel.
There is nothing worse than changing your mind half way through a design or refurbishment project – and your budget will well and truly go out the window. you will usually enjoy longer warrantees with trade quality products, giving projects more longevity. Introducing a timeless design with better quality items, such as linens and soft furnishings, will inevitably mean you will stretch the life of your design further. Independent hotels, as with any business, cannot afford to give the wrong impression and must offer guests a different experience than their chain counterparts can provide.
T: W:
01904 695 588 beaconpurchasing.co.uk
HR is changing fast. If you don’t believe me, research the characteristics of Generation Y.
hotels are already strategising around or their client list. It doesn’t take long this. to see that generalists are experts at very little and that will be reflected in Outsourcing: There are many HR the quality of their training. Specialists A seismic economic shift creates a managers who evolved into the role will get busier and generalists will die. new landscape. New landscapes because, as one hotelier said to me mean the some well-worn paths no recently, they are “good with people”. Training and Content: Boring, dull, longer exist. The old way will not be That’s dangerous. HR departments monotone lectures won’t teach new the new way and changing views will need expertise, not hugs. Over the generations anything. They need to require new thinking which, in turn, next year, much higher and be engaged, involved and excited. require new strategies. specialised expertise will be needed. People learn in different ways. Really In most cases, the regular hotel HR good training and development That’s one influence but new Manager will be a generalist rather acknowledges that and designs generations are decidedly different. than a specialist. The future requires training around a real understanding They see the world very differently. niche expertise and that will lead to of how young people engage. the growth in outsourcing and the Similarly, dull content, often bought, Is your HR policy ready to emerge death of average generalists. franchised or roll out since the from recession and manage new beginning of time, will kill enthusiasm attitudes? Outsourced Expertise: Beware of and that will play into the hands of slick marketing that tells you that your competitors. So what’s coming down the line for outsourced HR companies are the HR Management in 2015? The short answer to all your worries. Read the Recruiting: Recruiting will become answer is, “lots”. terms and conditions first. I have more difficult for HR Departments for come across far too many hotels who three distinct reasons: The Law: There’s a difference outsourced their HR to discover what between understanding HR procedure was not included when the day in 1. As we emerge from recession, versus Employment Law. Law court dawned. employees will have more changes fast and even the best HR options. Managers often don’t know the Psychology: Psychology will become 2. How you recruit using difference. In a litigious society where a much bigger part of business and traditional interview routes will loyalty is thin, you need to be understanding how we impact on not appeal to Generation Y or protected, up to date and compliant. people. Smart hotels are already on Z. Many think they are, but discover top of this. If you care about retaining 3. Your reputation in the they’re not in the bosom of Court. your best staff and managing your community will be paramount. loose cannons, then isn’t it worth How’s it looking? Loyalty: Generation Y and Z value investing in? recognition very highly. Yet, they are Performance: Are you counting loyal to themselves, their career and Generalists: The world is full of hours or productivity? There’s a their ambition. ‘Loyalty’ is now far “training generalists”. Take a look, a difference. Young generations do not more complex than lip service. Smart deep look, at their web page, their CV adhere to 9-5. In fact, left to their own
Conor is the founder and principal of Conor Kenny & Associates in Ireland and the UK's leading independent training, HR and L&D company for the hospitality industry. He is also the author of Sales Tales. Discover more: www.conorkenny.com
devices, they work longer. As more and more people work from home, the challenge in the New Year is how you measure performance and productivity, not the hours behind four walls. Social Responsibility: On its own, no clear social responsibility programme or commitment, is a very good reason for young people not to want to work with you. If you have not engaged meaningfully with those less fortunate, Generation Y simply won’t engage with you. Support: Work is your daily village for an enormous part of our lives. It would be great if we were emotionless machines that ran forever. We don’t. Emotions, ill health, fear and more conspire to inhibit performance. The old way of being dictatorial and intolerant of human frailty will certainly get a quick response. The problem is, the response won’t be one that benefits you. The most important part of any business is the people who live there. They are your brand. How you treat them will say a lot about your brand and, more importantly, about your future prospects. Tread carefully, it’s all change for the world of HR.
You know that moment when you ask someone for their feedback or opinion and they say one thing, but you hear from the hesitation in their tone that they think something different?
you. By which time, if they feel strongly enough, they will have already told the whole world via TripAdvisor or Yelp! 2. Awareness
Well, that’s the beauty of face-to-face feedback.
Whilst you are still blissfully unaware of any issues, other guests continue to be affected in the same way.
6. First to Know Your guest has had the chance to tell others before telling you ... and we all know that these days it is not just one or two close friends! 7. Personal
So often when I discuss with clients how they gather guest feedback, they refer to a questionnaire or comment 3. Engagement card - be that online or a physical document. It’s too easy to ignore a questionnaire. It’s an interruption, often overly long There’s no doubt the feedback you winded and there may be little gather from guests can be valuable. incentive from the guest’s perspective Without it, how do you know what’s once the moment has passed. working and what’s not, and how to build on the good and put right the not 4. Discover Everything! -so-good? A questionnaire can’t cover every So gathering guest feedback via conceivable aspect of your service some kind of questionnaire is surely or if it does it will be way too long and better than nothing? likely to get the guest to abandon it half way through. So it is easy to miss But it is a far cry from direct, face-to- things that are important to your face in-the-moment feedback. guest.
Finally, the biggest drawback is that the feedback you receive is impersonal and one-way. It can loose those all-important subtle nuances that you can get when conducting face-to-face dialogue.
Here are seven reasons you might not 5. Immediacy want to solely rely on questionnaires for feedback: There is often a time lag in which the facts can get forgotten or distorted. Negative experiences can get 1. In the Know amplified and positive ones diluted in If you don’t know about any issues the guest’s mind. Likewise, you have until you get back the questionnaire, 9 forgotten the specifics which means times out of 10, it’s going to be too following up becomes more time late to resolve things before the guest consuming as there is invariably a lot leaves or ends their relationship with of back-tracking to be done.
That’s when we need to be keeping our “ear to the ground” and listening to what our guests are sharing amongst themselves.
With so many fundamental flaws, don’t just rely on questionnaires. Rather, you should get out there and ask your guests directly what they think and how you can make their experience even better. However, we have to accept that sometimes feedback is not forthcoming. Nor is it practical to hear everyone’s feedback right away.
Stop and think for a moment just how many businesses are being talked about every hour or every day on social media – whether that’s Twitter, TripAdvisor or any one of hundreds of others.
Caroline Cooper is a speaker, author, trainer and consultant on customer service and loyalty. She’s founder of Naturally Loyal, specialising in helping businesses retain more of their quality customers. She is also author of The Hotel Success Handbook Discover more: www.naturallyloyal.com
Tracking Feedback With so many feedback channels, how do you keep tabs? As a minimum, set up Google Alerts for your name and business so you know when you’re being talked about. Although you will not get instant feedback, you can set this up so you get notifications as they happen, daily or weekly. If you wait a week to find out then it is too late! Of course, this means resolving guests’ queries and complaints. And what better way to appease a disgruntled guest than picking up on their post, thanking them for their feedback and responding straight away when they are least expecting it. Guest feedback doesn’t always equate to negative feedback. Think how often your guests say great things about you, share photos and even let their friends (and you) know that they are coming back to visit you. These moments present a fabulous opportunity to engage with your guests, share their enthusiasm and generate positive word of mouth. So whether it is in the real world or in the virtual world, don’t hide behind a form or bury your head in the sand: ask, listen and act on your guests’ feedback.
Following on from my last column in the last issue of Hotel Industry Magazine, How Guest Emotions Impact on Hotel Revenue, I wanted to explore the impact of attitude and the emotions of your staff on hotel performance. Take a look at this sign that I saw in a restaurant recently. Does this apply to the guest experience your teams deliver? Yes? Sometimes or never? Why does this happen? Each member of your team chooses the attitude they bring to work every day, and this has a huge impact on their performance, your guest experience and hotel revenue. Attitude is affected by how we think and feel. Through self-awareness and management of our emotions, a good attitude has a huge effect on the Guest Experience. Staff with positive emotions and a positive, “can do” attitude add so much more value to hotel performance. They are more productive, demonstrate empathy and care for guests and deal effectively with challenging situations and difficult team members.
make your guests feel valued and special.
and empathy skills too, as these are not natural for everyone.
Happy guests stay longer, spend more, return and tell more positive stories about you.
2. Empowerment
Staff with a negative attitude and negative emotions damage team morale and performance, destroy the guest experience and your reputation. Their negative emotions inevitably end up at your door as a complaint or displayed on your TripAdvisor page.
Staff are happier, more productive and serve guests better when given the freedom to do their job. Clear boundaries are needed to allow them to treat guests in the way they like to be treated. If there are too many rules, employees don’t act spontaneously to create magical moments for guests.
As a hotel leader, here’s what you can do to support your team and positively 3. Manage Employee Expectations influence your employees’ emotions: Staff expect more from their employees today. They want regular, 1. Emotional Intelligence Training in the moment feedback. They want to Emotional Intelligence Training know exactly what is expected of Excellent guest relationships can only provides skills and strategies to them and how their role affects the be developed when staff are happy. develop self-awareness, selfguest experience and the whole management and coping strategies. business performance. Positive thinking and emotions are needed to drive positive language to Help the team with rapport building Younger staff may seem impatient
Anne Blackburn is the co- founder of the award winning Sidona Group. As Customer Experience Director, Anne specialises in mystery guest programmes, guest research, guest experience training and conference speaking. Discover more: www.sidonagroup.com
and want to challenge decisions, but they are hungry to learn and committed if you take the time to understand them. A mentoring programme creates positive staff who then feel you care about them. Regular, honest and transparent company communication makes staff feel involved in the business. 4. Leadership Role Modelling Visible, supportive leaders with excellent coaching skills are needed to create a positive environment. The hotel values and standards must be reflected in all managers’ behaviours. There must be no ‘say-do’ gap. Employees watch their leaders and adopt what they perceive to be acceptable to the company. Leaders who are quick to recognise and reward success, give staff a voice, allow input into decisions that affect them and create meaning for their work have engaged and happy employees. It is key to also find time for some appropriate fun at work and socialise with staff. Hospitality is a demanding and tough environment. Fun workplaces are not only more productive, they attract the best staff and guests and profits.
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