amalgamation of occupancy and rate . Consider 9 / 11 , when the hotel industry deeply discounted rates in an effort to incite demand . It was not the smartest of maneuvers and it took the industry years to get back to pricing health . This time around , many hotels were literally closed , so no rate was going to attract business . In hindsight , good .
“ It was the first time we learned our lesson and preserved rate ,” said Sara Gulla , SVP of asset at Pebblebrook Hotel Trust , a real estate investment trust that owns hotel .
And it ’ s carrying over now as the pandemic has subsided . " Business is back and we are driving rates stronger than ever ,” said Edward Hoganson , EVP , CFO and CIO of Crestline Hotels & Resorts , which manages hotels .
Hotels are not only getting their revenue game right , they are making sure the cash drives down to the bottom line . Revenue is only good if you can hold onto it , and over the years , it ’ s been harder to turn a profit with the gauntlet of rising expenses , from labor to utility costs .
On the labor front , it ’ s been harder to fill open positions , and when they are filled , it ’ s more expensive , which puts the onus on owners and operators to find other ways of cost containment . “ We changed things structurally and operationally ,” said Gulla , such as consolidating positions and clustering to keep staffing at an optimal level .
“ Technology allows us to streamline operations and allows us to run leaner with less staff ,” said Hoganson .
The pandemic also altered the business mix . Traditionally , hotels banked on big business , especially group and corporate , on Sundays to Thursdays . That ’ s not the case anymore , according to Thomas Penny , president of management company Donohoe Hospitality . Leisure guests typically filled the weekends , but the impact of remote working and “ bleisure ” has caused a shift . “ We used to discount on weekends , but leisure is now paying corporatelike rates ,” Penny said , where a blended trip might have a few days on the front or back end .
THE NEW WORKFORCE As the labor workforce has changed , so , too , has the worker mindset , according to Penny . Penny ’ s first job in hospitality was working in fast food at Roy Rogers when he was 13 years old ( he altered his birth certificate to make it appear he was 16 ). Penny joined Donohoe in 1996 , working various operational jobs . His job now is to recognize and foster talent , but kids today , he said , aren ’ t as patient as they used to be .
“ We have young people coming in who want to move up quick ,” he said . “ It took me 19 years , serving tables and making beds . We have to do a better job at introducing opportunity . This is a low-floor , high-ceiling business .”
" We need to do a better job of marketing the industry — it ’ s a
WE NEED THE BOARDROOM TO LOOK LIKE THE BREAKROOM
– THOMAS PENNY , PRESIDENT , DONOHOE HOSPITALITY fun business ,” Gulla said .
It ’ s also a tiring one and not a profession that is done remote , like a lot of workers today , who can work from their kitchen table through a computer . Hospitality — until , perhaps , AI takes it all over — is a face-toface business .
Still , employers must be more understanding of their employees ’ lives outside the workplace . For instance , “ We have to be more conscientious of commutes ,” said Blank , “ and what it takes to grow . People just don ’ t show up for interviews sometimes . We have to search our own souls to attract and retain staff .”
“ We have a responsibility to give opportunity and show the way ,” said Hoganson . “ Wages are up and for a good reason .”
Added John Fetty , associate principal at Lessard Design , “ People want to work where they are comfortable .”
Still , barriers exist , especially in the corporate ranks . Though the front of the house is decidedly diverse , above the house is historically not . “ DEI is the backbone of our industry ,” Gulla said . “ We have to believe in the benefit of different ideas and perspectives and that comes with diverse hiring .”
Hoganson noted that 75 % of its hourly employees are “ people of color or woman ,” while less than 25 % are c-level .
Penny , who is Black , said there is enough room in the industry for everyone and , in a rather poetical moment said : “ We need the boardroom to look like the breakroom .”
June 2023 hotelsmag . com 39