Excerpt from Conde Nast Traveller.
Going abroad will be challenging for unvaccinated people, but many parts of the planet will become more accessible in the years to come. Planning will be difficult because of the stop-start nature of country openings, who would have thought France would close its borders to the UK for a few weeks in January 2022, for example? We are living in an unpredictable era that requires high levels of contingency planning and travel insurance.
Consumers will be able to go ahead and get some trips in the diary as long as they are fully refundable and offer free date changes.
If you want to make more responsible choices, then you should pick a destination that relies heavily on tourism, as it will mean your money will go towards rebuilding their economy and giving locals desperately needed income. The trends defining travel are here.
1. There are destinations that are restricted-free.
International travel is about to become easier as countries relax their entry requirements, with booster programmes well underway in many parts of the world. Australia and New Zealand will soon reopen to tourists after being almost completely closed off for two years. In December of 2021, Fiji reopened its borders to international travellers so there are indications that this is the direction things are moving in. Vietnam began allowing outsiders with the restart of flights to the US at the end of last year.
2. The long-haul remake.
Long-haul flights are experiencing a revival, despite the fact that industry experts believe it will take at least another two years for global aviation to return to pre-pandemic levels. In line with the November 2021, restart of tourism for fully vaxxed travellers to the US, several airlines have been announcing new routes. British Airways from London to Portland, Finnair from Helsinki to Seattle, and Virgin Atlantic from London to Austin are included. Qantas flights from Australia to London and LA began in November of 2021.
3. Personal development retreats.
The last two years have been gloomy but as we emerge into the sunlight, many people will invest in self-improvement. Millions of people all over the world have been quitting their jobs and looking for new career paths in order to become more entrepreneurial. It makes sense that retreats like the Aerial BVI in the British Virgin Islands, which is an incubator for positive transformation, and the Heartbreak hotel in Norfolk, which helps women overcome love loss, are popping up around the globe.
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The names, logos, and products mentioned are owned by their owners.
Page 2
Nineteen properties in the Raines Co. portfolio went live with a browser-based enterprise accounting tool. Aptech added its newest version business intelligence tool, Execuvue®, to its portfolio recently, and the company is extremely pleased with it. The Raines Senior Vice President of Operations, Ron Glancy, is more excited about the new financial management tools than the rest of the corporate accounting team.
Glancy had been manually preparing a daily report for Mark Raines since 2008. The report was manageable with only two hotels in the portfolio, but with the demand for more data growing daily, the task had become daunting. Glancy spent considerable time manually preparing a spreadsheet for the company's owners, shareholders, and general managers, whether he was in the office, at home, on vacation, or travelling out of the country. Aptech Vice President Cam Troutman presented a custom operations report to mirror Raines' needs after learning of Glancy's plight.
Execuvue is a business intelligence application. The solution makes reporting and data gathering easy. Operators can make smarter business decisions and answer questions on the fly using it. Execuvue provides stunning images of financial and operational data to deliver actionable insights, and the drag-and-drop environment with predictive analytics creates visualization based on data entered.
Glancy said he jumped at the chance when he was told that Execuvue could automate the Executive Report and tie it to the legacy of founder Mark Raines. It used to take me a long time to make it, but now it only takes 10 minutes. I have immediate access to the previous day's information when I log in. Execuvue graphically displays our finance and operations data in minutes, and it helps us all make smarter business decisions based on actionable insights. This is the gift that keeps on giving.
Glancy said the new Executive Report shows the number of rooms rented, average daily rate, revenue per available room, percent of Occupancy, and more. Raines gets a performance snapshot for the entire portfolio, as well as by region, by brand, and by property, thanks to the system configuring the data to deliver a report by region.
Glancy said that Execuvue saves time and takes a lot of pressure off of him. I didn't have to worry about finishing the report before my day started in the first year. Being able to give quick views to owners and managers allows us to react to the market more quickly. It gives us real time information about the rooms occupied. If Mark Raines could see how quickly we could put this data into the hands of 65 executives, he would be very happy. The efficiency is amazing.
Aptech has become the industry standard for financial management because of opportunities like this, said Troutman.
When I heard Ron's story, I knew that Execuvue would rock his world, and it did in a big way. I learned that Mark was passionate about scrutinizing the numbers and would continue to deliver the data and expand the report after he died. Execuvue was tailored to meet Ron's reporting needs and honor company standards. Raines is a family-owned business. They believe in building relationships with their valued employees, vendor partners, shareholders, and community members. It makes my job so rewarding to expand my relationships with companies like Raines. I wish them continued success in the future and look forward to growing our partnership.
For more information on Execuvue by Aptech, visit the website.
About the rain.
Raines is one of the Southeast's premier hotel management, development, and investment groups, offering a comprehensive approach to its impressive property portfolio and client base. The company is known for its operational experience, success with historic properties, and expertise with the world's leading brands such as Marriott, Hyatt, and Choice. Raines has 20 hotels and 1,927 keys throughout the Southeast, including notable boutique hotels The Foundry Hotel in Asheville, NC and Hotel Florence in Florence, SC. Raines is located in Florence, South Carolina, with a secondary regional office in Charleston, South Carolina.
About Aptech Computer Systems Inc.
Aptech Computer Systems, Inc., based in Pittsburgh, Pennsylvania, is the only provider of fully integrated enterprise accounting, business intelligence and planning to the hotel industry. Its solutions help customers at both the corporate and property levels understand their financial and operational data for faster goal achievement. Aptech is an IBM Software Value Plus partner and a Prophix premier business partner. Aptech has a state-of-the-art back office, true business intelligence and enterprise planning solutions that are 100% hotel specific. There are solutions like Execuvue® and Targetvue. Large chains, multiple-property management companies and single-site hotels are some of the properties that clients comprise. Execuvue is a trademark of Aptech Computer Systems Inc.
The names, logos, and products mentioned are owned by their owners.
Page 3
People are booking hotels online. We are all using digital technologies to our advantage. 98% of people looking to book hotels check the reviews online, regardless of how they book their stay.
A majority of people say they wouldn't book a hotel if it didn't have reviews online. It is clear that online reviews play a significant role in hotel reputation management and help create a strong online image to boost visibility and ensure more bookings.
Most customers read reviews on this platform, so hotels want to get the best possible reviews and comments. There are a few tips on how to get to the top on Tripadvisor.
Reputation is important.
The growth of your KPIs is impacted by each positive review. Your loyalty will grow with great reviews. Travelers looking to book a hotel go through 6 to 12 reviews before making a decision.
Around 85% of those people trust the reviews they read as if they were personal referrals, while 65% of travelers aged 18 to 29 say that online reviews are very important when choosing a hotel. Younger generations pay more attention to the internet and like to find good hotels in a few clicks.
Your staff is the best way to get great reviews.
Hotels need to hire people who love to serve and make others feel special. Hotels have to invest a lot of time and resources in training, supporting, and empowering their employees with the right culture, skills, tools, and mindsets to excel at their work.
They will have the freedom, creativity, and knowledge to tackle guest issues on the spot. They will be willing to go out of their way to provide guests with that special service they are looking for and inspire great reviews.
The culture of the organization needs to be defined.
The whole team needs to pay attention to the reviews. Everyone needs to do their best to make the guests feel welcome, and they should all treat them with the same level of care as a family member.
Proper leadership is needed to do this. The leaders need to set an example and coordinate the right strategies across the organization to establish a culture where professionalism and hard work are rewarded.
Negative reviews should be addressed by general managers.
Each negative review gives a hotel an opportunity to look at its services and see what could be improved. They should be looked at from a broader perspective. Hotels should have someone write responses to reviews, but they shouldn't be GMs.
The GMs should be involved in helping with the response, learning about the broader picture, and coming up with necessary solutions for the future. Someone else should write and post the responses.
The DOSMR should be involved.
The Director of Sales, Marketing, and Revenue needs to pay a lot of attention to their reputation. Why? Without it, there is no good revenue maximization.
User-generated content can affect how online reviews look. Revenue maximization is dependent on reviews. Someone will check the reviews with every ad, call, or post.
It is a must to use aCRM tool.
A good customer relationship management tool can help manage customer reviews. One important thing is to find a hotel team that can communicate with management and guests.
It is important to tackle issues as they come along with all the relevant people involved. It is possible to find the best solutions for the pain spots of employees that could be the difference between a positive and a negative review.
Hotels should focus on getting 5-star ratings.
Getting 4s is not so bad, but it actually says a lot more. It means that someone has had a neutral experience. The staff was nice, but it didn't make their dreams come true.
These guests are more likely to look at other options the next time they are in your hotel. A 5-star rating means that guests would come back again in the future.
Guests choose hotels based on reviews.
If all the other factors are the same, travelers will choose hotels with better reviews 3.8X more often. If hotels have the same level of service, prices, and location, they will win over customers.
Travelers will pay more money to stay at a hotel with better reviews. Travelers that look for hotel reviews online check them out at TripAdvisor. Most people check out TripAdvisor before they even think about buying a hotel.
You can use an integrated hotel management system.
Hotel managers can manage both front-office and back-office processes. The systems help hotels have a detailed overview of their operations. Customers can have easy check-ins and check-outs, get housekeeping at their fingertips, integrate all payment methods, and so much more with a cloud-based PMS.
They help hotels provide better experiences which can lead to more positive reviews. Better reporting and analytic capabilities can be achieved by centralizing your guest data. It is possible to determine which guests are giving you positive reviews. You can change your approach to get more positive reviews.
The bottom line.
Your revenue, online reputation, and reviews of your hotel are all tied together. If you want to learn more about their relationship and how you can improve your processes to boost your reviews, you can check out the full ebook.
You can book your demo here.
There is a method for this.
About mycloud.
Prologic First, an independent, private company with over a decade and half's experience delivering end to end technology solutions to the hospitality industry across the UK, Asia, Africa and the Middle East, developed mycloud, an award-winning hotel software. Over 2,000 clients represent the "who's who" of the industry using the "WISH" brand from Prologic First. Some of the most popular solutions are "WISH", "Touche", and "Web Prol'IFIC". Some of the most advanced features to hospitality professionals can be found in our technological leaders and best in class solutions.
The names, logos, and products mentioned are owned by their owners.
Page 4
Hyatt Centric Wall Street New York is the new name of Andaz Wall Street, which was acquired by the Blue Sky Hospitality Solutions. The hotel will begin welcoming guests on January 26, 2022.
The design of the hotel offers a playful interpretation of the city that it resides in. The lobby of the property was recently updated to reflect the Hyatt Centric brand. Over the next several years, the property will be redeveloped with an investment of $5 million.
The Hyatt Centric brand is known to embrace the locale and inspire exploration, which is a key brand differentiator for the Hyatt Centric brand, which was the reason for the re-branding of Andaz Wall Street to Hyatt Centric Wall Street New York. The hotel is located at 75 Wall Street, which is a great location for travelers to discover the best of New York City with premium lifestyle accommodations.
The Hyatt Centric Wall Street New York is our first hotel in New York City and it is an ideal addition to our current portfolio of 53 owned and operated hotels throughout the U.S., said the executive vice president with oversight of the management team. The hotel in New York City has some of the larger rooms in the city, ranging in size from 345 to 1,500 square feet. The hotel will be renovated to make it one of the most desirable locations in New York City.
The lobby will have a modern design aesthetic where large scale artwork from local artists captures the essence of downtown New York City while textured layers with pops of color will offer points of interest throughout the public spaces. The 253 rooms offer upscale, modern comfort with layers of discovery and walk-in rain showers. In addition, each guestroom will feature a variety of art and styling elements that celebrate the character of the destination and signature brand amenities including a Drybar® hair dryer and exclusive Beekind® high-end bath amenities.
The Wall & Water restaurant will be re-opened on January 26 and will be led by New York chef and food and beverage director Alan Ashkinaze. Hyatt Centric Wall Street New York will have a new dining experience that will serve as the social center of the hotel and a destination that will meet every guest's needs. The property has more than 10,000 square feet of meeting event space.
David Cohen will be the general manager of Hyatt Centric Wall Street New York. Cohen has led luxury properties such as the Five-Star Hotel Plaza Athenee, and The Ritz-Carlton, as well as Four Seasons in New York.
The names, logos, and products mentioned are owned by their owners.
Page 5
The UNWTO reports a 4% rise in international tourist arrivals.
Arrivals were still down on pre-pandemic levels in 2021.
Increased vaccination rates are needed for recovery.
The global tourism industry experienced a 4% increase in 2021, compared to 2020. According to preliminary estimates by the UNWTO, international tourist arrivals were still below pre-pandemic levels. The worst year on record for tourism was in 2020.
The first issue of the UNWTO World Tourism Barometer shows that rising rates of vaccination, along with easing of travel restrictions due to increased cross-border coordination and protocols, have helped release demand. International arrivals fell in both the third and fourth quarters compared to pre-pandemic levels, but rebounded in the second half of the year. International arrivals in December were below the levels of the previous year. The impact of the Omicron variant and surge in COVID-19 cases is not yet known.
Slow and erratic recovery.
The pace of recovery is slow and varies across the world due to mobility restrictions, vaccination rates and traveler confidence. Europe and the Americas recorded the strongest results in the year, but still were well below pre-pandemic levels.
The Caribbean saw the best performance, with some destinations coming close to or exceeding pre-pandemic levels. Southern Mediterranean Europe and Central America rebounded, but are still down by more than half. North America and Central Eastern Europe climbed above 2020 levels.
Africa saw a 12% increase in arrivals in 2021. The number of arrivals in the Middle East declined over the course of the year. Many destinations in Asia and the Pacific remained closed to non-essential travel, despite the fact that arrivals were still 65% below 2020 levels.
The economic contribution of tourism in 2020 is estimated at US$ 1.6 trillion, but is still below the pre-pandemic value of US$ 3.5 trillion. International tourism's export revenues could reach US$700 billion in 2021, a small improvement over 2020 due to higher spending per trip, but less than the US$ 1.7 trillion recorded in 2019.
The average receipt is expected to reach US$1,500 in 2021, up from US$1,300 in 2020. Large savings, longer lengths of stay, and higher transport and accommodation prices are some of the reasons for this. France and Belgium reported smaller declines in tourism expenditure. Saudi Arabia and Qatar had better results in the year 2021.
The outlook for the following years.
The UNWTO Panel of Experts says that most tourism professionals see better prospects in the future. A potential rebound only occurs in 2023, as an42% of people expect a rebound in the third quarter. A majority of experts now think international arrivals will return to their previous levels in 2024 or later, up from 45% in the September survey.
The UNWTO Confidence Index shows a slight decline. A rapid and more widespread vaccination roll-out, followed by a major lifting of travel restrictions, and more coordination and clearer information on travel protocols are some of the factors identified by experts for the effective recovery of international tourism. UNWTO scenarios show that international tourist arrivals could grow by up to 70% as compared to 2021.
The recent rise in COVID-19 cases and the Omicron variant are set to disrupt the recovery and affect confidence through early 2022, as some countries reintroduce travel bans and restrictions for certain markets. Many destinations in the Asia and the Pacific still have their borders closed, despite the fact that the vaccination roll-out is even. A challenging economic environment could put additional pressure on the effective recovery of international tourism, with the surge in oil prices, increase in inflation, potential rise in interest rates, high debt volumes and continued disruption in supply chains. The ongoing tourism recovery in many markets, mostly in Europe and the Americas, could help to restore consumer confidence and accelerate the recovery of international tourism in 2022.
Domestic tourism is driving the recovery of the sector in destinations with large domestic markets. Domestic tourism, travel close to home, open-air activities, nature-based products, and rural tourism are some of the major travel trends that will continue shaping tourism in 2022.
The link is related.
The UNWTO World Tourism Barometer will be published in January.
The names, logos, and products mentioned are owned by their owners.
Page 6
It has stuck with me since I heard it 40 years ago. I was a bartender in my hometown hotel. The controller was one of my regular weekend customers and he told me he needed an income auditor for the summer line-up. My brother was recently out of work and I suggested he go back to work.
He told me that my brother had no experience in hotels, so my suggestion would never work. I pressed him on it and he said that they have a different way of doing things in the hotel world.
I was curious about what he meant when I took hotel accounting 101 at hotel school.
It took me several years to get to the accounting department in another hotel, but I can tell you about it here at brotherly love. I have never worked in an accounting role in a hotel but I am pretty sure I know why hotels are different from other businesses.
Number 1. Hotels are a retail business.
We need to balance the receipts each and every day. On top of that, we operate 7/24/365.
We throw away the key to the front door when a hotel opens. If you are an accountant in another business, you can bill your customers through accounts receivable and make money at your leisure. In the hotel world we have revenues and settlements coming at us like a storm each day and that means managing cash, credit cards, our in-house guests and accounts receivable.
Number 2. Hotels are a heavy business.
This business requires more attention to detail. I don't know what I mean by that statement. In the hotel world, we operate systems to help the hotel function efficiently. The property management system, F&B point-of-sale systems, SPA and golf systems, inventory systems, labor management systems... The operational features of all these systems include reservations, check in and out, tee times, recipes, staffing guides, as well as the money and accounting transactions flowing through them at the same time. If you don't like getting your hands dirty under the hood, you won't survive as a hotel numbers person. Leaving these devices to someone else will not work.
Number 3. Balance everyday comes from No. 1 and 2.
With all the retail and systems activity happening at the same time in all the areas of the hotel, we need to balance things up completely. We need to balance revenues and receipts. We need to make sure the separate revenue systems are balanced. All sub ledgers have to be balanced including credit cards, guest ledger, city ledger and advance deposit ledgers.
Throw in a mountain.
Gratuities to be tracked and paid, some as cash and some as paychecks.
The other outlets that sell cash and credit cards include the SPA.
The bars and restaurants have daily reconciliations of their inventory and operating stock.
Tracking and analyzing payroll for hundreds of employees.
There are a lot of things to record correctly and this means balancing and tracking all of them, because they all require accounting treatment. They need the accounting department to keep an eye on it and constantly monitor it.
Number 4. Expenses roll up in multiple departments.
This is a mind bending for many other accounting types. In most other businesses, they have a straight line, one revenue source and directly related expenses leading up to the profit and loss line. Their financial statements are straight forward. In the hotel world, revenue and expense lines are rolled up into statements and then into the top-level report. We use USALI to understand it all. You can read more about her here.
The hotel accounting world is a full contact sport. You cannot survive if you don't know how all of these things work together. You will need to direct the show and be able to operate on the wounded daily. You need to be able to balance the books, do the budgets, forecasts, and keep the owner happy.
My brother got the job and didn't pay me any headhunter fees. 40 year's salary x 15% is worth a lot.
I help hotel leaders and teams with financial leadership coaching. Learning and applying financial leadership skills is a fast track to greater career success and increased personal prosperity. I improve individual and team results with a proven return on investment.
Call or write today and arrange for a complimentary discussion on how you can create a financially engaged leadership team in your hotel.
David can be reached at (415) 696-9593.
David is the financial coach at the hotel.
www.financialcoach.com
The names, logos, and products mentioned are owned by their owners.
Page 7
Many of the changes in the UK hotel sector are long-term, if not permanent.
The past 18 months have been an unprecedented time for hotels. HVS London chairman Russell Kett outlines seven changes that businesses can't afford to ignore as we move into 2022.
1. The use of smart rooms, digital reception, keyless rooms entry, smart payment, smart check-in/out, with some hotels eliminating the need for a front-of-house reception team entirely, is now becoming commonplace. The use of smart technology in hotels must now reflect the fact that the Pandemic has prompted technology to play a greater part in our day-to-day lives, as many customers will now demand this in all areas of their lives. Hoteliers have historically been slow to address technological improvements but now need to invest in the future to keep up with guests.
2. Online communication is an alternative way of meeting that is cheaper and more efficient than face-to-face meetings. As companies continue to impose greater financial scrutiny over travel costs, travellers will need to find ways to make business trips more efficient. Hotels that have a lot of exposure to the business should look to offer facilities that support and enhance this, whether it be spaces for smaller meetings, encouraging local people into work hubs or offering areas for online meetings with suitable background, lighting, seating and food and drink.
3. As the market proceeds along a recovery phase, there is likely to be an increase in refinancing, restructuring and disposals. Debt funds are tipped to become the most active, although traditional lenders are likely to return once hotels' cash flows improve. Credit funds and other alternative lenders are expected to tolerate a greater degree of risk, which will lead to more diverse financing.
4. There is still a lot of capital looking to invest in hotels and, while the availability of distressed acquisition opportunities is likely to be less than expected, this will support recovery in asset values. As loans come up for refinancing and prospects improve, hotel transactions should become more busy as the year progresses.
5. Data from the Office for National Statistics shows that the staff shortage in the sector is 10% of capacity. More than 90,000 European workers have left the industry since the beginning of the year due to changes in visa requirements.
Some hotels have reduced their trading hours or days, cut out lunch service or afternoon tea, closed gyms or health spas, or are trading with a percentage of rooms shut or with reduced service levels. Finding staff to serve large functions has proved difficult. Longer term, hotels need to operate with fewer staff in order to use technology. Some of the hotel company brand standards which were scaled back may need to remain in place for the longer term, and further changes may need to be considered to reflect the new normal.
6. Hotels have often outsourced services such as cleaning, housekeeping, maintenance, and security, but staff shortages are prompting new areas, such as food preparation and room service, to be outsourcing too. Improved deliveries as well as restricted menus allow this to work more efficiently and economically. A degree of food preparation can be done off-site by a number of new dark kitchens if food provision is an add-on. The operators of such kitchens could lease some of these areas to the hoteliers.
7. There is no doubt that corporatesustainability has become an urgent matter. The environmental credentials of a company are now being looked at by both the lender and investor as well as those that don't have an active or convincing ESG policy. The issue can no longer be ignored or paid lip-service to, it is both real and urgent. The hotel sector is late to the party and needs to act quickly.
About Russell Kett.
The Chairman of the London office of HVS is Russell Kett. He has 40 years of experience in hotel consulting, investment and real estate, advising hotel companies, banks, developers and investors on all aspects of their interests in the hotel industry. Russell is a frequent speaker on topics relating to hotel valuation, investment, marketing and finance. He lives in Israel and is a frequent visitor. Contactrkett@hvs.com for more information.
The names, logos, and products mentioned are owned by their owners.
Page 8
January, 17 2022.
The national restaurant association.
Operators say it's difficult to deal with increased prices.
There is currently a shortage of everything from packaging materials to proteins.
Ask any restaurant owner if there are any supply-chain shortages and he or she will tell you that is one of the things keeping them up at night. In some cases, even replacement parts for kitchen equipment are in short supply because of the shortage of everything. When a restaurant owner can get his or her hands on those items, they can't seem to get enough of them and are paying more for what they can get.
Dan Simons, co-owner of Founding Farmers Restaurants in Washington, D.C, says that he only has one advice right now, that is to stay flexible and accept that making daily adjustments will remain the nature of the game.
The items we are expecting to run short will catch up, but we will be surprised by the next shortage. So be it. I remind myself that I have a team to face these challenges and that I am fortunate to have them.
Menu price inflation is expected to increase.
Hudson Riehle, the Association's senior vice president of research, says operators should expect menu price inflation to remain historically high as supply challenges and high food costs continue well into the future.
He says that disruptions in the supply chain are affecting restaurant businesses. A survey done by the Association found that 98% of operators experienced supply delays or shortages of key food or beverage items, and that the impact was felt across all segments of the industry. 8 in 10 operators said they experienced supply delays or shortages.
Learning to change course when necessary.
Anissa Mandell, senior vice president for Atlanta-based Focus Brands, says that restaurants have been forced to change their menu offerings on a regular basis because of the shortages. She says there's definitely frustration. It is difficult to plan or predict when you don't know if you will get product in. You don't know if you'll get everything you ordered when you get your delivery. You have to adjust if 5% of your items don't show up. In our world, where there are so many proprietary products you can't just pick up at the local market, that's difficult to do. The company has had some temporary disruptions with items such as packaging. She says that on any given day, they might have a challenge with cups. "That's one area where we're acting on opportunities that could help us deal with shortages." According to Founding Farmers, prices for different food items will start to come down by 2Q of 2022.
He says he expects more price fluctuations throughout the first quarter because of the disruption caused by worker shortages as companies and families deal with COVID-19 related illnesses. If there isn't a new variant, things will start to settle down, but only if the omicron variant peaks.
The names, logos, and products mentioned are owned by their owners.
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