In September, I headed to the Lodging Conference in Phoenix with 1,900 attendees! It was a great conference and by the time you read this article, we will be in the fourth quarter of 2021 — the turning point, in my opinion, of the hospitality economy. Why? Because the virus has peaked, and we must move forward.

Business leaders are traveling again, groups are meeting, and it is time to get back on track. By this time next year, I predict that the industry will be healthy throughout the market segments. That means that leisure business will continue to thrive and will include international travel, corporate business will be robust and within 10 to 15 points of 2019, and group business will be on the books if not booming.

Hospitality as 'Art' Is Not Dead, but 'Science' Is Here

In this environment in which hospitality has become more science than art, it is often forgotten that we must train and motivate staff. Assuming we are diligently completing our business plans and budgets, we must have a strong foundation of knowledge and must be able to transfer that knowledge to today’s department heads and even general managers.

In addition to some of the basics, this knowledge must include the ability to budget by forecasting both revenues and expenses, which is difficult in this environment. The awareness of which distribution channels are most profitable, the latest revenue management tenets and finally trends, many of which are technology-oriented, are all paramount to success.

Next month, I will be working on my annual Top 10 travel trends and they will likely include robotics, artificial intelligence and automation in general. Further, a “business success plan” for the hospitality industry requires a new set of disciplines. Knowledge acquisition of the changing technologies coupled with strong service leadership skills will make the transfer of the success plan to each unit manager much easier.

Rock Stars and Trust

I recently spoke at the Women in Tourism and Hospitality conference in San Diego. On the one hand, women are our future — they are in the majority of leadership at my hotels and possibly yours. But we need to offer them some balance in life and instill confidence that they have chosen the right field.

The concept of balance came up in my panel discussion at the California Travel Summit last month as well. Our panel was “Hiring a Rock Star,” and it was attended by tourism leaders throughout California and the U.S.

Here is what I said in a nutshell:

A rock star can be a career dishwasher who supports the cooks, cleans the dishes and kitchen meticulously, all with a great attitude. Executive rock stars might require significant skills that include communication, technology and either analytics or sales — both would be even better for a general manager or corporate officer. We must keep and recruit rock stars, and if that means a change in our compensation, benefits and perks, so be it.

Staying informed on the constant and rapid technological advancements within the industry will make all the difference when competing with other companies and organizations. There is a need to compare today’s distribution channels with those that were in existence over the past few years to become aware of just one of the significant differences. The dominance of a mobile web, blossoming social media markets, always-emerging disruptors and development in digital marketing are all pivotal in staying ahead of the curve.

Company culture has become extremely important in retaining good talent, and trust is developed through this positive company culture. Jumping ship is easy to do unless employees are truly engaged and supportive of the mission. While job benefits are always a positive, they are now so commonplace that they cannot stand alone when it comes to employee retention. Note how we treat our guests and create an environment where your team feels valued, cared for and respected. Then watch as your service scores reflect the work of a satisfied team. This was difficult during the pandemic — we must declare the end of that chapter.

The Bottom Line

At the end of the day, be honest, caring and hard-working and you can begin to build the trust needed to drive your organization. Be both a teacher and a mentor so that when people learn, they also feel like they have a “go-to” source for advice. Our greatest assets are our team members and our customers. If we treat them both honestly, care about them, and work hard to preserve the quality and attention to detail that they require, we will have helped to create a “unique selling proposition” that sets us apart from the competition. To recovery and ultimately prosperity!

Robert A. Rauch
+1 858 663 8998
R.A. Rauch & Associates, Inc.