Tag Archives: Hotel News

by | December 9, 2015 · 7:29 pm

Are you ready for overtime changes?

overtime
By now I’m sure most of us have completed our 2016 budgets, but how many of you have started strategic discussions about the effect the proposed overtime regulations in the United States could have on your hotels?

If not, now is the time to start.

On 30 June 2015, the U.S. Department of Labor released its proposed changes to the overtime regulations under the Fair Labor Standards Act. If adopted, these changes will affect roughly 4.6 million current salary-exempt employees. While this will affect all segments of the American workforce, given the pay scales of our industry, hoteliers will be significantly affected by these changes, making more employees eligible for overtime compensation.

Under the current regulations, to be eligible for the overtime exemption employees must meet the duties and responsibilities tests under one of the administrative, executive, professional and/or computer professional exemptions. In addition, they must be paid a minimum weekly salary of at least $455 per week (or $23,660 per year).

The new federal overtime plan would increase the minimum weekly salary of $455 per week to $970 per week or $50,440 per year, a 113% increase. This change also would include automatic periodic increases to the salary threshold.

This means that regardless of the duties and responsibilities test, if a salaried employee makes less than $970 a week, he or she would no longer be considered exempt for overtime compensation. Hours would need to be tracked and overtime paid for every hour worked in excess of 40 per week.

As a leader in the hospitality industry, this should have your full attention.

The comment period for the proposed changes ended 4 September 2015, and we should expect to receive the final ruling sometime early to mid-2016. Once released, the changes will be effective within 60 to 120 days. And while we don’t know whether the DOL will adopt the current proposal or bring a new idea to the table, we should expect some changes to the salary threshold, as its last increase was in 2004.

For more: http://bit.ly/1maZAWV

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by | October 2, 2015 · 6:48 pm

Hospitality Industry Tech Update: “Two Digital Disruptors Hurting Hotels”

Airbnb’s price positioning play—accommodations often are less expensive than similar hotel rooms—is not sustainable, he said.20150730_distributioin_RSSDisrupter Once the platform is forced onto a level playing field and starts collecting taxes, it will costs hosts more to do business.

In an industry with so many variables, one thing is certain: Hoteliers are woefully inadequate when it comes to technological innovation. And that makes the impact felt by the so-called disruptors all the more disruptive.

Thus concluded a panel of owners and operators titled “Disruption 2020: The digital marketplace” at the Revenue Strategy Summit.

“We’re still stuck in the Stone Age,” said Shai Zelering, managing director of operations and asset management for Thayer Lodging, Brookfield Hotel Properties. Instead of investing in new technologies, hoteliers are more obsessed with new guestrooms amenities that ultimately don’t matter, he said.

“It’s about priorities,” he added.

To that end, panelists identified the two major disruptors that require the industry’s immediate attention.

For more: http://bit.ly/1MOx3yS

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by | October 1, 2015 · 4:54 pm

Hospitality Industry Management Update: “How to Combat Last-Minute Cancellations”

“If it’s one call from a regular guest who has to cancel at the last minute because of extenuating circumstances, that’s not a problem,” Rauch said. “Our goal is to protect and grow our revenue.Cancellations-feature But at the same time, we have no desire to have guests hate us. The last thing we want is for someone to badmouth us on social media because of how we handled their cancellation.”

With last-minute cancellations having the potential to wreak havoc in the revenue management arena, hoteliers from Los Angeles to London are opting for a range of solutions that include tightening the rules on refundable bookings and turning to more sophisticated algorithms to forecast.

Last-minute cancellations have been on the rise in recent years amid an emergence of online tools and platforms that make it easier for consumers to shop and compare hotels, explained Bjorn Hanson, a hospital industry expert and professor with the New York University Preston Robert Tisch Center for Hospitality and Tourism.

“It’s an increasing problem that needs to be addressed,” he said.

“People are always looking for a better deal, and most cancellations happen when they see another hotel lowering their rate,” said Jamie Pena, VP of global distribution and revenue strategy for Omni Hotels & Resorts.

She and many of her fellow industry colleagues are taking action.

For more: http://bit.ly/1WA7So6

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by | September 25, 2015 · 5:03 pm

Hospitality Industry Technology Update: “The Present and Future of In-Room Tech”

“Hotels should focus on making room technology easy to understand, accessible and relevant. Do not focus the efforts only on creating ‘fun’technology such as mood lighting and such.Roundtable-Feature It’s important to pay attention to the devices used by guests and add tech features, which can assist in an improved hotel experience.”

From cathode-ray tubes to flat-screen televisions to smart screens. From dial-up Web access to Wi-Fi.

In-room technology in hotels has evolved over the years, and it will only continue to do so. But what are the changes hoteliers can expect next? And in an industry often accused of being behind the curve when it comes to technology, what do hoteliers need to keep top of mind to add to the guestroom experience?

Five leaders responded to these questions in this Hotel News Now virtual roundtable. This is what they had to say.

From where it stands today, where do you see in-room technology headed in the next few years?

Mehul Patel, chairman and CEO of NewcrestImage
“Technology, notably Bluetooth, will increasingly make rooms more ‘open’—both literally and virtually. For example, mobile technology will allow guests to unlock and enter their rooms. And after they are in their room, guests will open their room to the virtual world with customized entertainment content and room management. Because today’s travelers have their own mobile devices, it enables us as hoteliers to provide them with technology that makes their stay with us smarter and simpler—‘smarter’ thanks to Bluetooth and ‘simpler’ by facilitating their use of personalized content in movies, television and music.”
 
Joachim Högefjord, managing director, and Gül Heper, commercial manager at HTL Hotels
“We believe it’s most important to stay relevant to the guests and their needs. In-room technology is not about filling a hotel room with all possible gadgets; it is about enhancing the guest experience and especially simplifying the stay at the hotel.“We need to continue looking at existing behaviors and identify the right needs, what devices are the guests bringing with them and review how to incorporate this in the room in order to provide a better guest experience. One given area, where we already supply device independent solutions is in terms of in-room entertainment. Why equip the hotels with expensive hotel TV systems with on-demand movies when most guests today can and will be using their own devices to stream and mirror everything from movies to HBO and Netflix for free with their existing subscriptions?“Mobile access to the room is of course also an area that will continue to develop and be more and more standardized. Today there are few hotels and chains that are fully offering this to all guests independent of distribution channel. From the start we decided that this should be one of our standard features, and already in spring of 2014 we launched our own app with mobile key.“Of course there is a lot of talk about in-room control systems for lighting, heating, shades, entertainment controls, etc. They might grow in the future, but at the same time it is generally a learning curve to handle them, and with guests staying in general 1.5 days in a room, it might add more complexity to your stay than added value.”
 
Bashar Wali, president of Provenance Hotels
“In-room technology will focus on connectivity for the traveler’s personal phone, tablets and computer. Guest-provided media will stream to TVs, USB outlets will be within an arm’s length away from the bed and desk in every guestroom. Personal technology has surpassed in-room hotel technology to the point of no return. With annual upgrade cycles for consumer technology devices, hotels can no longer spend enough to catch up. Hoteliers, stop implementing technology of the day and just let travelers have power outlets, free, fast Wi-Fi and access to their own media.”
 
Anna Blount, market research manager of MMGY Global
“When asked which device they are most likely to watch television or cable movies on during a hotel stay, 86% of travelers chose the in-room television, while 13% chose their personal laptop, 6% their tablet and 4% their smartphone.“Similarly, 84% of travelers said they were most likely to watch pay-per-view movies on the in-room television during a hotel room stay, while 9% chose their personal laptop, 9% their tablet and 3% their smartphone. Although in-room television is still dominate, we expect usage of personal laptops and tablets to consume in-room entertainment to increase considerably over the next five years.”
 
Euan McGlashan, co-founder and managing partner of Valor Hospitality Partners
“Technology will soon control the entire guestroom, and that’s a good thing. A guest will be connected to every element of the in-room experience—for example, entry locks, television, music, lighting, temperature, roomservice and in-room deliveries or services—through simple switches, remote controls and hand-held devices, which are either theirs or provided by the hotel.”

For more: http://bit.ly/1YzEVea

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by | September 14, 2015 · 9:16 am

Hospitality Industry Risk Update: “5 Ways to Pummel Pests at Your Hotel”

“(Hoteliers) really should have an independent inspection of their vendors,” Rivard said. “The prime food producers throughout the country already do that. They’re checking them out,20150911_pest control whether they’re buying some ingredient or working with a pallet manufacturer.”

A hidden danger of record high demand is more guests walking through the door means a higher chance anything from bed bugs to cockroaches to rats and ants are following right behind.

One of the few things more disconcerting than the pests themselves is the effect they can have on your bottom line.

A recent survey conducted by researchers at the University of Kentucky showed a single online review mentioning a bed bug sighting caused many to immediately write off a hotel. The first reaction of 56% of potential guests will be to no longer consider staying at that property, 7% will shorten their stay and 12% will seek to avoid that hotel’s brand in the future.

The same survey, results of which have not yet been published, showed 60% of guests who spot a bed bug would immediately leave the hotel, which is almost three times as many as those who would leave after finding someone else’s blood somewhere in a guest room.

“It’s a maddeningly difficult problem to deal with,” said Michael Potter, an entomologist at the University of Kentucky and one of the authors of the study. “Everybody is dealing with bed bugs … but hospitality is especially vulnerable because people rely so much on social media when making decisions.”

The potential damage to your hotel’s reputation is only worsened when considering the fact that less than a third of those surveyed could identify successfully a bed bug, with many confusing other pests like lice, ants, termites and ticks for bed bugs.

The harsh reality is there are no 100% infallible methods to keep pests from darkening your doorways, but there are some things to make sure they’re less welcome after arrival.

Here are five ways experts seek to prevent pests.

For more: http://bit.ly/1gmpxiM

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by | August 26, 2015 · 8:35 am

Hospitality Industry Management Update: “Airbnb Casts a Long-Term Shadow”

“We need to embrace the technology,” he said. “We can choose to work with them, which we didn’t want to do with (online travel agencies) at one point20150818_hdc_altaccom.Let’s learn from that lesson.” Cox said there are obvious lessons that can be learned by how Airbnb does business.

These are happy days for the hotel industry, so why does it seem like the only thing anyone wants to talk about is the shadow cast by the black cloud of the sharing economy?

Airbnb represents a significant threat in the eyes of many hoteliers, including those who spoke at the “Alternate accommodations: The demand bandits” panel of the 2015 Hotel Data Conference.

“We definitely see Airbnb as a big threat,” said Kurien Jacob, chief revenue officer of Highgate Hotels. “We come across that in every single meeting we have.”

Jacob said the preponderance of Airbnb hosts in New York City, coupled with that market’s well-publicized supply issues, has worked to drive down rates.

“Airbnb is so well known internationally, so it’s not just a problem domestically,” Jacob said. “So we’re seeing (international travelers) coming into the city and staying with Airbnb.”

For more: http://bit.ly/1EWeZNz

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by | August 3, 2015 · 9:34 am

Hospitality Industry Technology Update: “Company Uses Technology to Reduce Hotel Noise”

Given that studies have shown an increase in a hotel rating can correlate to an increase in the all-important average daily rate for a property,hotel noiseit’s no wonder why the hotel industry is trying to find ways to anticipate guests’ needs before they have time to bring it to the attention of hotel staff.

In a busy, bustling world, noise can be a problem for both hotel guests and hoteliers.

One company, Quietyme, has set out to reduce noise and cut down disturbances with the help of advanced technology.

Quietyme — founded in 2012 in Madison, Wisconsin — uses sensors to pick up the decibel levels of locations. Sensors can be placed in individual rooms and are connected via an electronic network. The sensors not only pick up the origin of high noise levels, but also indicate which particular rooms within a property are affected, based on each room’s decibel level. Reports are then sent to hotel staff either via mobile device or through the main hotel system.

Huey Zoroufy, COO of Quietyme, said the technology was originally designed for apartment managers, who used it to both monitor noise levels and curb property damage associated with high noise levels.

For more: http://bit.ly/1IeSGGy

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by | July 20, 2015 · 11:10 am

Hospitality Industry Management Update: “6 Ways to Prepare For the Next Downturn”

“Providing an exceptional guest experience is the best investment any hotelier can make.20150714_downturn_feature This is why we as a brand have rolled out a membership-wide training program all about the importance of unlocking the personalities of the staff and the story of the hotel when guests stay,” she said.

Good times continue to roll for the global hospitality sector with growth in the travel and tourism industry expected to increase by 3.9% this year, according to Ernst & Young’s “Global hospitality insights” report for 2015.

But in the cyclical fashion of the industry, the upswing can’t last forever.

So what should hoteliers be doing now to prepare for the inevitable down cycle, and how much can investing in their products and services now set them up for not so good times in the future?

For Eric Danziger, president and CEO of Debut Hotel Group and Hampshire Hotels Management, preparation now is absolutely key to success in a future downturn.

“Hoteliers should be pragmatic, preparing for when it is a bit more difficult to get those much-needed guests through a property’s doors,” he said. “Hoteliers that are prepared with a product and with services that guests value, appreciate and are willing to pay for will be ahead of the game.”

For more: http://bit.ly/1IflBgM

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by | July 14, 2015 · 10:10 am

Hospitality Industry Management Update: “Three Rules of Renovation”

“In an era when the next big tech invention seems to arrive every week, we recognize that our guests require us to stay on trend,” Spillett says.Renovation “We know that traveling can take its toll and sometimes leaves us vulnerable, without the comforts of home. These comforts increasingly fall in the technology category, so we make every effort to ensure that our guests have convenient access to the latest tech amenities and services.”

Lodging’s current robust performance is creating a competitive environment when it comes to product freshness. The industry fundamentals have never been better, and these conditions are driving a flurry of construction projects, rebranding and conversion activity, and renovations of every scope throughout the United States.

In the last three years, an estimated 1.2 million hotel rooms have been renovated, representing more than 20 percent of the existing supply, Lodging Econometrics (LE) data reveals. According to Bruce Ford, LE’s senior vice president and director of global business development, the number of renovations will likely trend downward as strong hotel operating profitability discourages owners from making rooms unavailable while being renovated. However, for those hoteliers willing to take the plunge and make some upgrades, here are some key takeaways for making the best renovation decisions for your bottom line.

For more: http://bit.ly/1MrH4ks

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by | July 13, 2015 · 11:51 am

Hospitality Industry Legal Update: “Are You Breaking the Law by Recording Calls?”

“Regardless of the content of the call, hoteliers should be ensuring that they are using automatic disclosures—in order to obtain consumer consenthotel-phone—if using an automatic recording system. If an operator becomes the target of one of these consumer privacy class actions, taking an aggressive approach and attacking these claims as incongruent with the legislative purpose and intent behind the respective statute is a recommended.”

In the past few years, class action plaintiffs have recovered billions of dollars in punitive damages by exploiting strict liability laws that punish businesses for failing to properly notify customers when a phone call is being recorded.

Under the Federal Telephone Consumer Protection Act and similar state statutes, businesses including hotels are prohibited from using certain tactics when telemarketing or making calls to solicit potential guests or customers. Hotels and other businesses are precluded from making calls or using any kind of prerecorded message, unless the caller has obtained a recipient’s prior express consent in writing or electronically.

Additionally, hoteliers are prohibited from making calls to residences before 8 a.m. and after 9 p.m., and a future hotel guest calling to confirm a reservation also must be notified if the call is recorded. Hence, under these laws, if a hotel receptionist in Montana receives a call from a California resident to confirm a reservation but never notifies the recipient that the call is being recorded, it could result in damages ranging from $500 to $5,000 per call under federal and state laws.

This seemingly innocuous business practice of recording customer service calls without providing some variation of the oft-heard disclosure, “This call may be monitored or recorded for quality assurance purposes” has the potential to financially cripple a business.

For more: http://bit.ly/1CBRlu6

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