EDITOR ’ S DIARY
PASSION FOR HOSPITALITY
OVERCOMING
THE PROFIT SQUEEZE
Owners and their advisors working to improve profit margins need to work with hotel managers in new and creative ways to stave off the renewed trend of RevPAR growth deceleration and declines . The squeeze is officially on , and going beyond the tried-and-true methods of controlling costs by cutting labor and marketing expenditures doesn ’ t always pay off .
Managing labor and cross-training are always chief among tactical moves made to boost profits , and deploying the best methods and software to control those costs still matter . But morale will
Editor In Chief certainly suffer with cuts and increased responsibility without added reward — so you ’ d better find ways to keep morale positive . Without it , even more costly turnover issues will creep into your set of challenges .
With that in mind , I immediately ask , what truly engenders happiness ? Canvas department heads and line-level staff to find out what would make them happier . Maybe there are not enough incentives — monetary , recognition and otherwise — to motivate and retain staff . Find out what they are and act on them , as more often than not these are not expensive endeavors . It could be as simple as sprucing up break rooms , weekly giveaways or more recognition in morning meetings .
In addition , when considering ways to aid retention , be authentic in practice and make sure it is reinforced from the top down . Remember , the bottom line benefits of increased retention generally outweigh savings from labor efficiencies .
I ’ d also like to draw your attention to last spring ’ s Ecole Hoteliere de Lausanne ’ s Young Hoteliers Summit , where Aethos London Managing Director Thomas Mielke astutely said that collaboration , empathy , enthusiasm , innovation , integrity and performance excellence drive best practices . “ The pitfalls of an overly strong , or rigid , company culture create an organization which will become inflexible and unable to adjust to changes in the business or work environment ,” he said . “ As a consequence , such organizations stifle innovation and create obstacles for effective decision-making .”
Aside from best practices for managing teams , driving revenue is always the best way forward . But believe it or not , complacency tends to settle in during the buoyant times the industry has been experiencing . Again , it might be time to better incentivize sales teams across the business and to generally get them more involved in ideation .
For example , generate discussion on what will drive marketshare gains when RevPAR growth turns soft . Among the other most-talked about opportunities is further growing group business and new ways to generate incremental F & B sales growth . The task remains the same : Brainstorm with your teams .
Ask the difficult questions that will save the bottom line ; incent everyone , as you never know where the best ideas lie ; and find new ways to keep your team members happy in their roles . Your bottom line depends on it .
EDITORIAL Jeff Weinstein , Editor In Chief 1.312.274.2226 E-mail : jweinstein @ hotelsmag . com Barbara Bohn , Managing Editor 1.312.274.2209 E-mail : bbohn @ hotelsmag . com Bert Ganzon , Senior Art Director 1.312.274.2227 E-mail : bganzon @ mtgmediagroup . com Steve Vanden Heuvel , Senior Art Director 1.312.274.2218 E-mail : svandenheuvel @ mtgmediagroup . com Brittney Hackbart , Associate Art Director 1.312.274.2216 E-mail : bhackbart @ mtgmediagroup . com Michelle Villadolid , Freelance Design E-mail : mvilladolid @ mtgmediagroup . com Bill McDowell , Vice President , Editorial Director 1.312.274.2201 bmcdowell @ mtgmediagroup . com
CONTRIBUTING EDITORS Judith Crown , Megan Rowe , Juliana Shallcross , Erin Sund
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INTERNATIONAL ADVISORY BOARD Nakul Anand Executive Director , ITC Ltd ., Gurgaon , India Stephen Bartolin President , Broadmoor Sea Island Co ., Colorado Springs , Colorado Alex Kyriakidis President and Managing Director , Middle East and Africa , Marriott International , Dubai Christopher Nassetta President and CEO , Hilton Worldwide , McLean , Virginia Monika Nerger Chief Information Officer , Mandarin Oriental Hotel Group , Atlanta Paul Sistare President and CEO , Atlantica Hotels International , São Paulo Susan Terry Vice president of culinary and food and beverage operations , Marcus Hotels & Resorts , Milwaukee , Wisconsin
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6 hotelsmag . com September 2019