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Resort ConferenceResort Conference
Webinar SeriesWebinar Series
The Case for Innovating NOWThe Case for Innovating NOWwebinar will begin shortlywebinar will begin shortly.
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The Case for Innovating NOWThe Case for Innovating NOW
May 6, 2009
2:00 pm Eastern
www.resortconference.com
The Case for Innovating NOWThe Case for Innovating NOW
www.resortconference.com
Today’s Moderator:
Bob Gilbert
President & CEO
HSMAI
Wish you were here!Wish you were here!
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TodayToday’’s Speakers Speaker
Scott W. Anderson
President
Kohler Company
Hospitality and Real Estate
www.resortconference.com
A perspective on the
Industry
Feb=-21%
Luxury Consumption IndexUnity Marketing Tracking Study
10097.8
102.7
96 95.6
100.9
104.7
94.4
104.8
113.2
99.2
103.3
98.2100.2
96.2
87.4
63.6
54.4
51
40.3 40.3
35
45
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65
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85
95
105
115
125
Dec-0
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Feb-04
Apr-0
4
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Feb-07
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So What Are You Going To So What Are You Going To
Do?Do?
In these economic times you
have a choice
Without the danger there cannot arise the opportunity.
�Danger
�Opportunity
The Chinese Characters for CrisisThe Chinese Characters for Crisis
Three Approaches to Hard Three Approaches to Hard
TimesTimes
There may be more but we only have a
short time.
The OstrichThe Ostrich
The OstrichThe Ostrich
• Sit in the office
• Move papers around
• Blame someone else
• Don’t get involved
• Find other Ostriches to play with
The Conservative
The Conservative ApproachThe Conservative Approach
• Hunker down, assume no one is doing well
• Reduce expenses
• Reduce staff
• Wait for better times to return
• Your Sales and Marketing Motto:
“We are no worse than anyone else”
The MotivatorThe Motivator
Success is how high you
bounce when you hit
bottom. George Patton
The MotivatorThe Motivator
– If I can’t increase sales I will increase market share
– It is more fun to increase sales than reduce
expenses so I will start there
– Looks to old ideas and adds a new twist
– Understands you have to kiss a lot of frogs to find
a prince so they like kissing frogs
The MotivatorThe Motivator
– Realizes financial constraints breeds creativity
– Embraces new ideas from everyone:
• Reads every day
• Listens to customers and staff
• Even bad ideas have a kernel of something
interesting or valuable
A word about Ideas
New ideas pass through three phases:
1. It can't be done.
2. It probably can be done, but it's not
worth doing.
3. “I knew it was a good idea all along!”
=
The MotivatorThe Motivator
• Finds New Ways
If you do what you always did,
you won’t even get what you
always got.
I donI don’’t know of any home runs out theret know of any home runs out therebut I have found some pretty interesting bunt singles and some doubles
• Let’s start with your current customers
– The Emerald Group
– Channel conversion
– Think Strawberries-Creating a revenue culture
– Turndown cards
– Don’t forget to take care of them while they are
there!
=
Outbound Calling (The Emerald Group)
• Identify your booking window
• Find the most knowledgeable reservations agents
• Call your guests
Results in 2008:
• $604,000 in incremental revenue in Golf, Spa and
Dining
Channel ConversionChannel ConversionMoving them from where they are to where you want them
• Typical 3rd party OTC contractual arrangement
– 25%-30% off lowest available rack rate
• 3rd parties are great to find new customers ONCE!
– If they book with you again using that same channel; shame on you.
• Let’s do the math:
– $100 room…Net from 3rd party = $75; offering the guest a 10% off the
lowest rate for a return visit …Net = $90.00
• How to do this:
– Email link
– Front desk coupon
– Post departure blast
Create a Revenue Culture
• James Lavenson-Plaza Hotel 1973
– http://www.easytraining.com/strawberry.htm
• Talk with your staff
• Hold training sessions
• Pick a “strawberry” in each department
• Measure your “strawberry” and celebrate your successes
The Turn Down Card
The Golden TriangleAre you taking of all three legs equally?
Guests
Employees Ownership
Online surveysOld time comment cardsFocus Groups
Employee Opinion SurveysInterviews Financial Results
Finding New Customers
• The desires of Generation X and Y
• Data Mining
• Market Segment and Market Source
– Are you getting your fair share from each?
• Generate Trial Through Specific Offers
– Then be sure you keep them when they try your resort.
Generation X and YGeneration X and Y
These two groups make up 30% of all leisure travelers in These two groups make up 30% of all leisure travelers in the US, but 35% of the weekend traveler populationthe US, but 35% of the weekend traveler population
� 52% describe themselves as “Enjoying the pursuit of what’s clearly original” something incongruous or a little out of the ordinary
� 62% are disenchanted with over-manicured and over processed
� 68% take a majority of their vacations with another adult and children
� In 2000 26% of the TOTAL population traveled with children, in 2008 38% traveled with children
� In 2008 84% of all travelers prefer a hotel of 300 rooms or lesswhile in 2000 only 64% expressed a desire for a hotel of 300 rooms or less.
� Only 22% of Xers and Echo Boomers use a travel agent but 74% booked a hotel online for leisure travel in the last 12 months
Generation X and YGeneration X and Y
• Of this population– 43% are visiting family/ relatives when they travel
– 39% are looking for a “naturalistic” Vacation
– 15% looking for theme parks
– 2% take golf vacations
• More likely than other demographic groups to:– Rent a cabin
– Go hiking
– Go Camping
• Less likely than other demographics to:– Go fishing
– Do general sightseeing
– Take a cruise
– Holiday in a city or where gaming is offered
– Go to an all inclusive resort
Do a REAL Assessment of Your ResortDo a REAL Assessment of Your Resort
Finding potential guests that look just like Finding potential guests that look just like
your current onesyour current ones
• Better known as Data Mining
– Demographic and Psychographics profiles
Your guest profile
Direct Mail List
Market Segment and SourceMarket Segment and Source
Apr-09Room Nts ADR
Room Nts ADR
Room Nts ADR
Room Nts ADR
Room Nts ADR
Room Nts ADR
Room Nts ADR
Room Nts ADR
Corporate
AssociationTourIncentiveSMERFTranscientPackagesAAA
AARP
Expedia Hotels.com Oribtz Travelocity
3rd Party OTC's
800 # Hotel Direct Travel Agent Hotel Web Site
Generate TrialGenerate Trial--Through Specific OffersThrough Specific OffersDate specific, product specific, audience specific
• 60% of Marketing is math
• Display ads in a dead market
• See data mining discussion
• Be Bold The Broadmoor MEETINGS Guarantee
Your Meeting is Exceptional. Or It's Free. Period.
If your BROADMOOR meeting or incentive program doesn't meet your
Expectations in terms of value, service, facilities and quality, we'll waive the master account. We perform. Or it's free. Guaranteed.
We are committed to excellence at The BROADMOOR and have not reduced staff, training, facility upgrades or facility maintenance. If you book a meeting for 2009 or 2010, you can feel confident that we will fulfill our promise to you.
A word about Renovation
• What better time than now to put money
back into the facilities-There is no one around
anyway!
• Talking to the owner’s about spending money
in the down times
– Now that should be fun.
When your outgo exceeds your income;
Your upkeep will be your downfall.
We need to talk about managing your
expenses.
On the Expense Side
• Use your sales skills and talk with your suppliers
• Get Back to Basics
– Food cost potential vs. actual (Banquet business has
covered your sins)
– Labor Standards
• Talk with your employees openly, honestly and
thoughtfully
• When it comes to staff-Lose your C’s and be sure to
keep your A’s
• Green and Safe are not marketing terms
Talking with the TEAMTalking with the TEAM
• In the absence of fact, one can create whatever fantasy one wants
– Normally talking with the team falls down on our to do list
• Make communication a two-way street
• Write a story
• Form a team of ambassadors
• No Holds Barred
• Follow up often
On the Expense Side
• Use your sales skills and talk with your suppliers
• Get Back to Basics
– Food cost potential vs. actual (Banquet business has
covered your sins)
– Labor Standards
• Talk with your employees openly, honestly and
thoughtfully
• When it comes to staff-Lose your C’s and be sure to
keep your A’s
• Green and Safe are not marketing terms
Green and Safe are NOT Marketing ToolsGreen and Safe are NOT Marketing Tools
• Utilities are on average 5.1% of Sales– Create Teams, Have an energy audit done again (and this time do
something)
– Use green to leverage cost savings
• Fringe benefits are on average 7.7% of Sales– Accidents (workers compensation) are a large part of fringe benefits
– Do you really have a safety team?
– Do you report to the departments how they are doing every month?
– Do you investigate accidents and invest in training where most accidents occur?
Most ImportantlyMost Importantly
Do not be afraid to make a mistakeDo not be afraid to make a mistake.
Whoever replaces you can fix it!
Questions?
www.resortconference.com
Scott W. Anderson
President
Kohler Company
Hospitality and Real Estate
Insert sponsor artwork here
Thanks to HSMAI University
Live & archived webinar programsBusiness Development • Revenue Management • Internet Marketing •
Business Forecasting • Customer Trends • Green • Sales • Professional
Development
Professional CertificationsCertified Revenue Management Executive (CRME) • Certified in
Hospitality Sales Competencies (CHSC) • Certified Hospitality Marketing
Executive (CHME) • Certified in Hospitality Business Acumen (CHBA)
Special ProgramsManaging Business Results • Managing Revenue
www.HSMAIUniversity.org
Graduating in June
with BS Business of Administration in Hotel Restaurant Tourism Management
• Jennifer Collins
• Matt Lane
• Michelle Pavlakovich
• Alexa Sansone
Future Graduates
majoring in Hotel Restaurant Tourism Management - available for internships
• Tim Healy
• Kiza Miller
• Becca Samson
• Yoshiko Shimura
Thanks to University of Denver Students
Upcoming Programs
• Emerging Lifestyles and Travel Trends:
Implications for Resort MarketingMay 11, 2009; 2:00-3:15 PM Eastern
Peter Yesawich, President and CEO, YPartnership
• Managing Group Sales Contracts in a World
Gone MadMay 13, 2009; 2:00-3:15 PM Eastern Steve Kinsley, Kinsley and Associates; Steve Rudner, Rudner and Associates
www.resortconference.com
Save the Date
10th Annual Resort Conference
May 2-4, 2010
PGA National Resort & Spa
Image of Courtesy of PGA National