At Ian Schrager's PUBLIC Hotel, cutting corners isn't an option
At a time when the hotel industry is desperately trying to revive itself, hotel visionary Ian Schrager said it is a mistake to reduce the quality of service through cost-saving measures.
"Of course, we're trying to run as efficient an operation as we possibly can," Shrager told Yahoo Finance Live (video above). "But I think you have to be very careful and not act precipitously and wait to see what happens. I think the most important thing is to get the customers back and not cut back on the services or the amenities or the things you're offering them."
Shrager added: "And once that stabilizes, then you can go to the next level and think how you might want to maximize your profits."
Demand and bookings at Schrager's PUBLIC Hotel in New York City are both up "in part due to pent-up demand" and in part because "people are suffering" and want to get out and interact with the world once again, the entrepreneur noted.
And as hotel occupancy rebounds there have been fundamental shifts in the business model. One interesting change , according to Schrager, is that "the focus has shifted to the leisure traveler, rather than business and group travel, which will have a longer ramp-up."
