Increasing the guest experience

When it comes to the opportunity for customer engagement, the travel industry already has a head-start – because who doesn’t get excited at the prospect of going on holiday? But while travel consumers might naturally be more inclined to engage, this also means there is greater opportunity for brands to get it wrong. Delays and disruptions might mar a travel experience, but how a brand deals with it can make or break a customer relationship.

Travel Brands need to do the basics as below:

  1. Consumers prioritise pragmatic needs, such as honesty, authenticity, value, and good service. Brands that do not meet these expectations (or view them as standard) run the risk of losing trust.
  2. Customer-centric brands create deeper relationships. Offering something of value (on top of the expected) can be the key to generating longer-term loyalty.
  3. Transparency is key when it comes to data-sharing. Personalisation can help to improve the customer experience, so it is important to communicate this value-exchange clearly with consumers.
  4. In-the-moment technology can take brands to the next level. VR, AR, and chat-bots can enhance and improve the travel journey, engaging consumers when it matters most.

Games Customers Play

Have you noticed how our guests have become smarter over the years and are now able to wangle better deals from you? As much as the world gets smaller, travel has become much less complex and affordable and today’s guests can be geniuses at negotiating much better deals than earlier. Besides, a larger supply of hotel inventory as well as destinations has tilted the scales in the favour of the guest.

Following are some of the most popular tactics that used by Guests

  • Shortage of funds/ limited budget/ more than estimate
  • Complaining from the time of check in /event
  • Never appreciating the positives during his stay
  • “I am too busy now, meet me later”
  • “Your competitor is offering me better rates than you”
  • Praises the competition
  • “What is your best offer?”
  • “I’ll book with you only if you quote me a discounted rate”
  • Referring documents to make out as if he is comparing your quote with competitors, but not specifying any comparison
  • Asks you to give him a minute and keeps on doing other things for a long time
  • Does not pay proper attention – talks to others around – Leaves in the middle for a while
  • Raises his voice on the phone with the person he is talking to in front of you
  • Showing off that he will be favouring you if he commits in your favour
  • Asks for a complimentary stay to check quality (in case of a large residential banquet query)
  • Makes out that he is very pressed for time

I was used as a catspaw!

Children’s author Aesop in 1919 relates a fable of the monkey, the cat and the chestnuts.

Once upon a time a Cat and a Monkey lived as pets in the same house. They were great friends and were constantly in all sorts of mischief together. What they seemed to think of more than anything else was to get something to eat, and it did not matter much to them how they got it.

One day they were sitting by the fire, watching some chestnuts roasting on the hearth. How to get them was the question.

“I would gladly get them,” said the cunning Monkey, “but you are much more skillful at such things than I am. Pull them out and I’ll divide them between us.”

Pussy stretched out her paw very carefully, pushed aside some of the cinders, and drew back her paw very quickly. Then she tried it again, this time pulling a chestnut half out of the fire. A third time and she drew out the chestnut. This performance she went through several times, each time singeing her paw severely. As fast as she pulled the chestnuts out of the fire, the Monkey ate them up.

Now the master came in, and away scampered the rascals, Mistress Cat with a burnt paw and no chestnuts.

Hence the phrase – ‘he used me as a catspaw.’

How often have we been used as a catspaw in our jobs?

As a General Manager, I was given to sign termination letters and file cases against various employees. Sometimes I may not have agreed with the harsh step taken, but job insecurity out of fear, may frankly have led me to comply… not my proudest moments for sure!

We all have our values, our code of ethics, our ways of looking at life… yet moments come when we find ourselves being used as a catspaw. You may relate to situations like these:

  • Your colleague convinces you against your better wishes to go along with his/her plans or ideas…
  • Your subordinate entices you into signing off his/her leave form with flimsy excuses and you do so in order to gain his/her approval…
  • Your boss gets you to do his/her work using flattery to keep you motivated…
  • Your boss takes your idea and implements it without giving you due credit…
  • People are nice to you only because they need something off you and not necessarily because they care for you…

All of the above may happen, but at a cost to you. Remember how pussy’s catspaw was singed while pulling out chestnuts from the fire for the monkey?

So keep a watch and be aware of such situations!

How many time have you been used as a catspaw recently?

Disruptive technology half a century ago ~ Sony vs. RCA

There is a class of technological changes where almost always the new entrant – with far fewer resources and with no track record – topple existing industry giants. This special class of technological changes, paradoxically, does not have to be sophisticated or even radical.

Take transistor television as an example. When RCA first discovered transistor technology, the company was already the market leader in colour televisions produced with vacuum tubes. The company naturally saw little use for transistors beyond a mere technological curiosity and decided to license it to a little-known Japanese firm called Sony.

Sony, of course, could not build a TV out of transistors, but it did manage to produce the first transistor radio. The sound quality was awful, but the radio was affordable for teenagers, who were delighted by the freedom to listen to rock music away from the complaints of their parents. Transistor radios took off. Still, the profit margins were so low that RCA had no reason to invest further. RCA was busy making serious money and investing every R&D dollar on improving vacuum tube colour TV.

Sony, meanwhile, was looking for the next big thing. It launched a portable, low-end, black and white TV targeting low-income individuals at a rock bottom price. Called the “Tummy Television,” it was tiny enough to perch on one’s belly — an antithesis of RCA’s centrepiece that graced middle-class living rooms. Why would RCA invest in transistors to make an inferior television for a less attractive market? It did not.

The real trouble began when Sony finally pushed the transistor’s performance to allow it to produce colour TVs based entirely on the new technology. Overnight, RCA found itself trying to catch up on a technology that it had ignored for the past three decades, which it had ironically pioneered and licensed out. This type of technology – inferior at first but immensely useful later – was disruptive, a term that has since been immortalized in the business lexicon of executives, consultants, and academics.

2016 India Biz Travel

India is one of the fastest-growing economies in the world, and the business travel spend that originates there is expected to reach $33 billion in 2016. India is the 10th largest global business travel market, and GBTA expects the country to climb into the sixth spot by 2019. In July, GBTA had estimated that business travel spend growth from the second quarter of 2015 to the second quarter of 2016 would come in at 10.2 percent. Now that those numbers are final, GBTA has found that business travel spend grew 10.9 percent during that period.

GBTA expects domestic business travel spend, which it estimates represented 91.4 percent of India’s total business travel spending in 2016, to increase 12 percent to $30.2 billion in 2016 and to reach $33.8 billion in 2017.

Think out of the box

An interesting case study…

First you hire someone, then you train them. Right? David Bowd thinks that’s backward.

Earlier this year, the CEO of Salt Hotels was preparing to open his fourth location, in Asbury Park, New Jersey. But he didn’t run a cattle call. He and his team started Salt School instead.

“This is an industry where it’s all about attitude and hard work,” said Bowd, whose resume includes stints with boutique hoteliers like Ian Schrager and Andre Balazs.

The company invited local job-seekers to a free, 10-week, 25-hour introduction to hospitality, and the only requirement was explaining why they wanted to be included. The result: 380 applicants, from teens to 60-year-olds, for 160 spots – many with moving stories of seeking a break, a second chance, or to be a role model for their kids.

“We set about calling in every favor we could with all the hotel friends we had” to staff the Saturday morning sessions, Bowd said, which focused on topics like sales and marketing, F&B and revenue management. In one class, students role-played front desk scenarios – luggage delivered to the wrong room, complaints about loud neighbors. “The purpose was to make decisions on the fly. It’s thinking creatively,” he added.

Bowd watched students gravitate toward certain responsibilities. “It was such a natural evolution of people moving toward areas that they felt comfort in and had a passion for,” he remembered. It also fostered a healthy competition. “You see who’s shy, who’s outgoing, and you are able to match people with their skill set much easier because you see them perform,” he said.

In the end, 110 students graduated, and the hotel hired 67 (three have been promoted); 90% were from Asbury Park. Other local companies have inquired about hiring the students, as well.

“At the end I thought, why have we never done this before? We just employed a whole workforce that we’ve already spent 10 weeks with,” Bowd said. “They know what our core values are, they know what to expect, they have a passion, they’re all local. This is a no-brainer.”

It’s also a lot of hard work, he acknowledges, but with results that far exceeded traditional recruitment, using an approach that he would like to see larger companies use in the communities they enter.

The school moves next year to Topeka, Kansas, where Salt is working on a 109-room hotel. Former students will become staffers to help prepare for an early 2018 opening. “I’ve opened many hotels, and this is the best way of doing it,” Bowd said.

Applying EI in Organizations

Emotional management skills which provide competency to balance emotions and reason so as to maximize long term happiness for self as well as dealing with others, when applied within organizations has major benefits.

Customer Service: Learning how to help your customers feel heard, understood, helped, served, respected, valued and important.

Hiring: Selecting employees with relatively high Emotional Intelligence, i.e. emotionally sensitive, aware, optimistic, resilient, positive and responsible.

Turnover: Enabling turnover reduction through helping employees feel appreciated, recognized, supported, challenged, rewarded and respected.

Training: Raising EQ at all levels of the business through Emotional Literacy and EQ awareness workshops.

Corporate Culture: Creating an environment where employees feel safe, trusted, special, needed, included, important, cooperative, focused, productive, motivated, respected and valued.

Productivity: Developing intrinsic motivation. Increasing employee commitment, cooperation and cohesion. Reducing lost time spent on conflicts, turf-battles, defensiveness and insecurity.

Goal Setting: Setting goals based on feelings. For example, stating the goal that we want customers to feel satisfied, appreciated, etc. and setting similar goals for employees, and then getting feedback on feelings and measuring and tracking performance.

Emotional Support: Mitigating negative emotions like fear, worry, anxiety, and stress.

Leadership: A leader with high EQ is emotionally aware. This means that he or she is aware of his own feelings and is not limited to logic, intellect and reasons when making decisions and managing people.

Mistakes made in designing your website

A website should be modern, aesthetically pleasing, inviting, and be able to show off your property. It is hard to remember that these small things can matter more than the expensive design things, but do not give in to marketing peer pressure. Usability beats trends. Make sure your most profitable revenue channel is more than just a pretty face. Also also remember to avoid the pitfalls below:

  • Missing Address & Phone Number
  • Fluffy Homepage Taglines
  • Putting music on your website
  • Cannibalizing Your Own Traffic
  • Poorly Embedded Videos
  • Bad Photography
  • Press Releases
  • The Dreaded Restaurant & Spa Menu PDF
  • One Call to Action
  • Bad Booking Engines

Marketing through Instagram

Its going to get harder and harder to think of Instagram  as nothing more than a simple tool for sharing a filtered version of your life with family and friends as this social media platform is fast becoming a marketing machine.

Now, businesses can set up a profile that contains a “contact” button that allows prospective buyers to call, email, or text a seller without ever having to leave the app. That grill making your mouth water? Call and make a reservation at the restaurant.

There is also the new Insights feature which promises to give businesses actionable information about ‘who their followers are and whose posts resonate better than others.’ By learning more about the behaviour and demographics of your audience, one can create more relevant and timely content.

Sellers will be able to promote posts, turning well-performing posts into ads right within the app. A business simply has to select an existing post, add an action button, and then select a target audience (or let Instagram suggest an audience on its behalf). From there, you will have an ad ready to run for as long as you’d like. The whole world will be able to access these tools by the end of the year.

What great sales people do…

Just as great brands cultivate mutually beneficial relationships with their customers, great salespeople cultivate a deep connection between their company and their client’s business. To borrow a term, the best salespeople are brand evangelists.

Guy Kawasaki first adopted the term “evangelism” into the business world by applying it to an innovative approach to sales, marketing, and management.  Evangelism, as he defined it, means “convincing people to believe in your product or ideas as much as you do” because evangelists believe that what they offer is truly helpful and valuable to others.

Brand evangelists — that is, great salespeople — build up support within a market for a brand so that it becomes the brand leader in its category.

Importantly, brand evangelism is not another one of the customer-centric or customer-driven sales approaches that have become popular in recent years.  Customer-centric sales and most other sales improvement approaches are pursued for the sole purpose of increasing sales.  Brand evangelism is about engaging customers in a way that produces stronger and more valuable brands and sustaining long-term business success for their companies and their clients.

This is what great salespeople do.

Emails are still numero uno

Despite whisperings of its decline in recent years, email remains a growing, go-to channel for marketers. A June 2016 survey of US marketers conducted by the Direct Marketing Association (DMA) and Demand Metric found that email had a median ROI of 122%—more than four times higher than other marketing formats examined, including social media, direct mail and paid search.
Agency professionals and in-house marketers worldwide are in agreement about email’s effectiveness, according to March 2016 polling from Econsultancy. Both groups named email marketing most frequently as a tactic able to provide a strong ROI, at 80% and 73%, respectively. The study also found that while respondents allocated an average of 16% of their overall marketing budget to email for 2016, the program contributed to 23% of total sales, a ratio that indicates email’s positive ROI.

Improving your ranking on TripAdvisor

Quality, Recency and Quantity of reviews are the three key factors that interact to determine a property’s popularity ranking on TripAdvisor. So what does one do to seek for prime positioning on TripAdvisor? Here are some suggestions to do it the honest way…

  1. Provide remarkable service
  2. Be true to your brand
  3. Be honest
  4. Mobilize your team in creating a guest-centric culture at your hotel
  5. Offer great value to your guests
  6. Do it with passion every day
  7. Empower your staff
  8. Reduce negative reviews by service recovery during the guest’s stay
  9. Listen to your guests in order to enhance the experience and overall satisfaction.
  10. Encourage guests to leave a review

Bookings cost more through OTAs

Sometimes, we all need to be reminded of just how much we’re throwing away by leaning too heavily on OTAs as a primary source of online bookings. Everyone knows that OTA bookings cost more, but very little is ever made of the fact that OTA bookings are usually much lower in total value than direct bookings.

The picture of an OTA customer is clear. They don’t care about your hotel brand (or any other property’s brand for that matter), what makes your experience unique, or any of your updates and renovations. You are a commodity to them. They’re looking solely at price and where they feel they’ll receive more bang for their buck.
OTAs are not only your least valuable booking sources, they are also your costliest. To make matters worse, many hotels attempt to out-do their competition on OTA channels by offering even lower rates than what is listed on their own hotel website (via opaque offers). It’s the hotel industry’s version of hara-kiri. Not only is this short-sighted, it unnecessarily undercuts and cheapens any other efforts you make to drive profitability at your property. Lowering already-discounted room rates will ultimately leave potential guests no reason to book direct.

Fishing for the Will-o’-the-wisp Recruit

Let’s take a look around our workplace and really understand our key wealth creation prospect ~ our team. Let’s face it, it is very rare that we are able to recruit “polished jewels”… rather we are forced to look for the mud-encrusted ones which are available in the marketplace. Which of us would not like to begin with a team filled with Jewels? But is this really viable? The truth is that a perfect recruit is as elusive as the will-o’-the-wisp (a person or thing that is difficult or impossible to reach or catch) and as utopian a concept as can be.

Oft times, logic advises us to select for experience, intelligence, or determination. Talent, if mentioned at all, is an afterthought.

Conventional wisdom says that either Experience, Brainpower or Willpower makes the difference.

Some managers place a special emphasis on experience, paying close attention to a candidate’s work history and brands worked for. They see his past as a window to his future.

Other managers put their faith in raw intelligence. They say that as long as you are smart, most roles can be ‘figured out’.

Yet other managers believe in the ‘Success is 10 percent inspiration, 90 percent perspiration’ school of thought. Managers from this school believe that the technical part of most roles can be taught, whereas the desire to achieve, to persist in the face of obstacles, cannot. When selecting people, they look for past evidence of grit.

No doubt experience can teach valuable lessons; intelligence is a boon; and willpower – which great managers actually label a talent – is almost impossible to teach. However we fail to take into account that there are so many other kinds of talents and that the right talent, more than experience, more than brainpower, and more than willpower alone, are the pre-requisites for excellence in all roles – talents such as a restaurant steward’s ability to form opinions, empathy in order-takers, assertiveness in salespeople, or, in managers, the ability to individualize. Conventional wisdom assumes either that these behaviours can be trained after the person has been hired or that these characteristics are relatively unimportant to performance on the job. Both assumptions are erroneous. You cannot teach talent. You cannot teach someone to form strong opinions, to feel the emotions of others, to revel in confrontation, or to pick up on the subtle differences in how best to manage each person. You have to select for talents like these. Talents like these prove to be the driving force behind an individual’s job performance. It’s not that experience, brainpower, and willpower are unimportant. It’s just that an employee’s full complement of talents – what drives him/her, how he/she thinks, how he/she builds relationships – is more important.

The next time you recruit, try looking for talent in an individual and then offer him/her a enhancing & nurturing environment. Then sit back and enjoy the show…

Vendor or Business Partner?

So what’s it with words and the finer nuances they proclaim? Try these…

  • I need my order at the earliest! ~ vs. ~ When is the earliest you can supply my order?
  • This pricing is not proper ~ vs. ~ We are looking at a better pricing
  • We cannot pay you earlier than 30 days ~ vs. ~ We will be pleased to make payment at the end of 30 days.
  • I will reject the order supplied if it does not meet our specification ~ vs. ~ Do ensure that the order supplied meets with our agreed specifications, so as to avoid returns.
  • Your proposal was unacceptable ~ vs. ~ Regrettably, we were unable to select your proposal

It’s a no-brainer that the statements on the right are the more polite ones and many of us would like to say that we are active proponents of such communication. For those who have been on both sides of the supply chain, the learnings come quicker.

Some organisations believe in calling their Vendors as their Business Partners, but in reality how often do we really consider our suppliers as one of our valuable resources?

Most hotels in Goa contract serenaders, one man bands, duos etc. and this has always been a flourishing business for musicians particularly in this state. During my tenure at Goa’s finest and leading luxury resort, I would audition them myself, plan their performances to match the weekly events and finalise their contracts after negotiating the best rates amongst five star hotels in Goa. Having done so, I would now ensure their comfort in ensuring they had their meals at the coffee shop buffet in comfort after the performance; their roadies were looked after in the staff cafeteria; their payments were made promptly by the 15th of every month as promised in the contract; their issues, if any were brought to my notice and I would attend to them personally. I would also check on their performances many of an evening and even give them feedback on the same. All this startled them as they never had this kind of personalised treatment at the other hotels.

The result? Every six months at the signing of the new contracts, my Musician & Jewish blood would ensure the change in rates be maintained within levels suited to my profitability parameters. The beauty of this was that these musicians & performers (and there were 5 sets of these) never wanted to leave my hotel as they knew that they were appreciated by the management!

Now think back to those Business Partners (Vendors) who stayed with you even when you move to a smaller organisation. You will probably find that the reason they did so was the respect you showed them in your dealings with them earlier. The Ritz Carlton motto – “We are Ladies and Gentlemen serving Ladies and Gentlemen” which we all heartily agree to may now be applied in this context also… what say?