Opinion Articles

July 10, 2017

Messages for Hoteliers from the USS Midway

No trip to San Diego is complete without a trip to CV-41, also known as the USS Midway, the largest ship in the world until 1955. The carrier was since decommissioned in 1992 and has been turned into a floating museum. As basically an entire town in a boat, the sheer size of this craft defies imagination. Touring her decks and viewing the wide variety of aircraft and exhibits can easily take a full day. Not having a military background, I was in total awe and full of admiration all those who had boarded this great vessel and served in the Navy.

By Larry Mogelonsky, Partner, Hotel Mogel Consulting Limited

May 4, 2017

Restoring Balance and Protecting Value: Leveraging the Franchise Lifecycle Model

The franchisor-franchisee relationship is a model most people understand, and it has historically led to mutually beneficial success. The franchisor owns the brand and related intangibles such as recipes, processes, and technology. It sets the standards, provides support services, and takes a fee in return. The franchisee owns and operates the assets, employs the staff, puts in the hours, and earns a return as an entrepreneur.

By Rebecca Chasen, Kevin Lane, and James Cascone

November 23, 2016

An Innkeeper In The White House

To be for or against Donald Trump is now irrelevant: in January 2017, he will officially become our President and Commander in Chief. We may or may not like any of his policies, and have issues with his character. One thing remains: he is a Hotelman, an Innkeeper, and will have a natural tendency to see to it his/our industry prospers.

By Benoit Gateau-Cumin, Chief Recruiting Officer, The Boutique Search Firm

November 16, 2016

AETHOS Consulting Group CEO Shares Thoughts on Trump Presidency

"My hope is that Trump will be good for the economy and a voice for the hotel industry on Capitol Hill. Travel is a key indicator of economic health and I believe Trump's, low tax, small government is good for business. Fixing healthcare will also be a plus for the travel industry, as the system seems to be disliked by everyone. Immigration will be an interesting issue for our industry (including food supply chain) as we employ a great deal of first generation immigrants and undocumented workers. Trade issues with China and Latin America will also have an impact on our industry from an investment prospective. But travel could be adversely affected if relations get strained. I think our industry will be more of a bell weather for Trump's policy successes or failures than any other president in our history."

By Keith Kefgen, Managing Director & CEO, AETHOS Consulting Group

October 28, 2016

Is Election Year Uncertainty Putting U.S. Businesses At Risk?

Today, the GBTA Foundation released its latest quarterly U.S. business travel forecast, slightly downgrading our expectations from the previous quarter. Uncertainty around the upcoming presidential election is among the factors influencing our more pessimistic outlook for U.S. business travel spending through 2017.

By Michael McCormick, Executive Director, GBTA

July 14, 2016

Cancellation fees, Smaller Meetings, and Shorter Lead-Time

I'm not qualified to write about industry trends, but I can write about trends that I have observed at one of my client's properties, a very upscale resort located at a great destination, that has done as much as 70 percent group business.

By David Brudney, ISHC, David Brudney & Associates

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July 31, 2015

Do Hotel Brand Names Really Matter?

Professors Chekitan Dev (Cornell), Pradeep Chintagunta (Chicago) and Yi-Lin Tsai (Delaware) prepared this article based on Professor Tsai's doctoral dissertation completed at the University of Chicago's Booth School of Business and share findings from the study, "What's in a Name? Assessing the Impact of Rebranding in the Hospitality Industry."

By Yi-Lin Tsai and Pradeep Chintagunta

February 28, 2014

8 Things to Negotiate in Your Next Franchise Agreement

The most common question we hear from clients is, 'What's really negotiable in a franchise agreement?'. Franchisees are told by the brand that the franchise agreements are not negotiable, but then they hear that someone has been able to negotiate at least one or two contract terms. Potential franchisees don't want to waste time, but the contracts seem so one- sided, and they want to get as much substantive relief as they can.

By Robert Braun, Partner, Jeffer Mangels Butler & Mitchell, LLP, JMM

June 6, 2013

Major Theme Parks Are Going Indoors

When you think about Six Flags, Sea World or Cedar Fair, it is typically an outdoor experience during summer when kids are out of school. But now, major theme parks and amusement parks are going indoors --- where they can attract visitors 365 days a year and not worry about poor weather wiping out profits. Indoor theme parks are not new, but there is a surge of new development. The first large-scale indoor amusement park, Galaxyland, built in 1985, was a giant success with 400,000 sf of amusements and thrill rides inside West Edmonton Mall in Alberta, Canada --- combined with a 355-room hotel and a 217,000 sf indoor waterpark.

By Jeff Coy, ISHC, President of JLC Hospitality Consulting, JLC Hospitality Consulting, Inc.

Cayuga Hospitality Consultants

May 8, 2013

Boston Marathon Bombing A Lesson For The Hospitality, Travel And Tourism Industry: Terrorism Is Here To Stay

Box cutters, pressure cookers, shoes, and backpacks. Not considered to be sophisticated weapons or technologies but these are examples of the weapons used to temporarily halt entire economies, prevent travel, and terrify millions in regions where terrorism strikes.

September 19, 2012

The Staggering Costs To Hotels Managing Leads In An E-RFP Explosion

Today, e-RFP channels are enabling meeting and event planners to flood the market with a tsunami of "leads" that has left hotels struggling to keep up with the demand, according to an article published in Business Travel News. "It's broken," said Hyatt Hotels Corporation senior Vice President of Sales, Jack Thorne. "The whole thing got out of control almost overnight with us."

By Tom Costello, iGroupAdvisors

Houston, United States

July 19, 2010

Cruise Ships Add Waterslides & Aqua Parks | Floating Hotel Waterpark Resorts Race to Compete for Families

It started back in 2005 when Royal Caribbean Cruise Line added rock climbing walls, mini-golf and ice-skating rinks to their cruise ships. In 2006, they launched the industry’s largest passenger ship, Freedom of the Seas, with an onboard surf simulator called a FlowRider and an H2O Zone aqua park. And the race began. In 2009, Carnival Cruise Line added an aqua park called WaterWorks to its Ecstasy Cruise Ship at Galveston TX and its Dream Cruise Ship at Port Canaveral FL. Last December, RCCI launched its newest big ship, Oasis of the Seas, with an H2O Zone and two FlowRiders.

By Jeff Coy, ISHC, President of JLC Hospitality Consulting, JLC Hospitality Consulting, Inc.

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July 6, 2010

Extended-stay Hotels: Going Up Market, And Looking Abroad

Extended-stay hotels are demonstrating resilience in a recession and continue to attract developer interest in the US – but the biggest opportunities are elsewhere, says MARK SKINNER, Partner in the Atlanta-based HIGHLAND GROUP. The demand side of the equation: Demand for extended-stay hotels started to fall in the fourth quarter of 2008 and the decline accelerated into 2009. Demand declined 3.6 % for the first half of 2009 compared to the same period in 2008. However, this compares favorably to the corresponding 8 % overall decline in hotel demand.

HYB

April 21, 2010

Best Western members make the right choice

It’s hard to believe the North American members of Best Western International have agreed to allow the brand to adopt designators that will reflect the offerings of BWI properties. The issue had been met with resistance for so long that I didn’t think it would ever see the light of day.

April 15, 2010

SpringHill Suites’ fresh look takes hold

West Virginia—You might be surprised when you walk into the SpringHill Suites Ashburn. No wall-length front desk. Soft lighting, lots of textures to check out. The revamp of Marriott International’s select-service, all-suite brand is eye-catching indeed.

March 8, 2010

Carlson scores with Radisson move

This week’s news that Carlson Hotels Worldwide is setting up a tiering system for its Radisson brand is a sign that some “normalcy” might be returning to the global hotel industry. The fact that a franchising company is asking its franchisees to pony up cash for refurbishments with the idea of moving its brand up a level shows that at least one company believes the industry has hit bottom. It will take at least US$8,000 per room to upgrade a standard Radisson Green property’s guestroom softgoods to the Radisson Blu designation. That’s not chump change, but the early reaction from owners is many are ready to make the commitment.

January 11, 2010

Understanding Franchise Fees

Every two years HVS evaluates the fees charged by hotel franchise companies in the United States. The purpose of this analysis is to provide a comparative review of various brands based on applicable franchise fees. The selection of an appropriate franchise affiliation affects a property's ability to compete in the local market, generate profits, achieve a certain image or market orientation and benefit from referral business.

By Stephen Rushmore, Hotel Valuation Expert and Founder of HVS, Hotel Valuation Software

April 29, 2009

AAHOA celebrates, looks toward the future

With a record level of membership, an increasingly noteworthy presence in Washington and continued sway in the franchising community, the Asian American Hotel Owners Association is happy to be celebrating its 20th anniversary. But it isn’t about to rest on its laurels, AAHOA leaders said during the association’s annual conference and trade show last week at the Gaylord National Hotel and Convention Center. “As we look back over the past 20 years, we have a lot to celebrate,” said Tarun Patel, incoming chairman. “But we must not become complacent.”

April 20, 2009

Hotel Values Decline – Have Your Property Taxes Gone Down?

The pervasive economic distress that characterizes the U.S. today has led to what will be an unprecedented decline in U.S. hotel performance. According to the latest national forecast by PKF Hospitality Research (PKF-HR), Revenue per Available Room (RevPAR) will fall 13.7 percent in 2009, the largest one-year drop experienced by U.S. hotels since the firm began compiling data in 1936. This decrease in room revenues will likely result in a profit decline of 30.1 percent this year. In this depressed operating environment where room demand is waning and travelers and corporations are tightening their purse strings, expense control has become ever more crucial. However, while savvy managers tend to keep a close check on their operating expenditures, one expense item that is not typically on management’s radar screen is property taxes.

CBRE Hotels