BITAC Owners Fall 2024: Operational Strategies in Hospitality
I moderated yet another panel at the recent BITAC Owners event. Each panelist shared invaluable insights on how to navigate the changing landscape of hospitality operations. The discussion brought together a diverse group of experts, each bringing their unique expertise from different corners of the hospitality and service industries. Panelists included Joe Felice, Regional Director of Operations at Cooper Hotels; Noreen McGillion, Regional Director of Operations at InterMountain Management; Anthony Nieves, Head of Strategic Sourcing/Procurement at Oasis Experiences; and Martin Thornros, Principal at Convergent Services. Here are some of the key takeaways on operational strategies, guest experience, and the future of the hospitality industry.
Harnessing Technology to Enhance the Guest Experience
Joe Felice, who oversees operations for Cooper Hotels in the Detroit region, emphasized the growing importance of technology in delivering a seamless guest experience, especially in a market dominated by corporate business travelers. Joe’s properties, located at the Detroit Airport, cater primarily to corporate guests who expect efficiency and convenience. To meet these expectations, Cooper Hotels has implemented Hilton’s connected room technology, allowing guests to control their room environment through their mobile devices. From adjusting the thermostat to managing entertainment systems, the technology enhances the guest’s control over their stay.
However, Joe pointed out that while tech-driven services are gaining popularity, hospitality remains rooted in personal service. Cooper Hotels offers both digital convenience for tech-savvy guests and traditional hospitality for those who prefer a more personal touch. The balance between digital innovation and human interaction is crucial for ensuring that no guest feels disconnected from the essence of hospitality.
Cross-Industry Lessons: Service Beyond the Slip
Tony Nieves, Head of Strategic Sourcing/Procurement at Oasis Experiences, brought a unique perspective to the panel, blending insights from his extensive background in both hospitality and marina operations. Oasis Experiences operates a network of mixed-use marinas, combining boat slips, food service, campgrounds, and other hospitality services. Drawing from his hotel industry background, Tony has focused on elevating service standards in marinas, an area that was historically underserved in terms of customer service.
The marina industry, Tony explained, is learning a lot from the hotel business. Oasis Experiences has developed a model that goes beyond just docking boats, offering amenities like food service, ship stores, and even ice delivery to boats. The goal is to offer the same level of service that one would expect at a top-tier hotel. For Tony, the key to success in the marina space—and across different types of hospitality—is providing exceptional, consistent service, regardless of the environment.
The Power of Loyalty and Employee Engagement
In a sector where repeat business is crucial, Noreen McGillion of InterMountain Management highlighted the importance of fostering guest loyalty through strong operational practices. InterMountain, recently recognized by Marriott for exceptional performance in guest satisfaction, has placed a strong emphasis on communication and consistency across its properties. The company focuses on loyalty programs, ensuring regular communication with the team to reinforce the importance of recognizing and rewarding repeat guests.
Maintaining service standards also extends to internal operations, particularly employee training and retention. Noreen shared that InterMountain’s internal leadership development program, “Climbing Mountains,” aims to promote from within. Assistant General Managers (AGMs) who show promise are given the training and support needed to step into GM roles across the portfolio. The key is training, supporting, and promoting from within to ensure consistency and build a strong internal pipeline.
Noreen also spoke about the impact of the ongoing labor shortage, acknowledging that her team, like many in the industry, has had to step up to cover additional duties. The importance of flexibility and leadership in today’s challenging environment cannot be overstated.
Technological Solutions for Operational Efficiency
From a technical standpoint, Martin Thornros of Convergent Services shared insights into the role of low-voltage systems and technology in improving operational efficiency. Convergent Services specializes in designing and implementing infrastructure and technology solutions for hospitality properties. Martin’s firm helps install systems like Wi-Fi, security, and energy management solutions, all of which are crucial components of today’s hotel and resort operations.
Technology plays a critical role in improving both the guest experience and back-of-house operations. One example was a recent project at a ski resort in Utah, where the integration of multiple Point of Sale (POS) systems into a single, unified platform drastically reduced the time spent reconciling daily reports. This type of technological integration, while complex, can significantly improve operational efficiency by streamlining processes and reducing manual effort.
Martin also addressed the challenges that come with renovating older properties and upgrading technological infrastructure. Renovations always come with challenges, particularly when dealing with outdated cabling and low-voltage systems. The key is understanding the property’s needs and finding solutions that are cost-effective and sustainable in the long run. Whether it’s a new build or a renovation, ensuring that technology aligns with the property’s goals is critical for success.
Navigating the Labor Shortage and Ensuring Employee Retention
The labor shortage continues to be one of the most significant challenges in hospitality. As the industry rebounds from the effects of the pandemic, Joe Felice mentioned that his region has seen a return of workers to the Detroit area, although many of them are new to the industry. New employees often require extensive training, which highlights the importance of investing in workforce development to ensure that new employees meet hospitality standards and can deliver on guest expectations.
Similarly, Tony Nieves discussed the creative approaches Oasis Experiences has used to address the labor shortage. The company has focused on recruitment incentives like referral bonuses and offering more flexible work schedules to attract workers. Like Noreen, Tony also emphasized the importance of retaining employees through consistent support and career development opportunities.
Financial Stability and Adaptability
Ensuring financial stability while navigating a changing market is crucial. Panelists shared their strategies for maintaining profitability, especially during periods of renovation or when managing a portfolio of diverse properties. Joe Felice emphasized the importance of driving revenue by focusing on the product’s value and optimizing rates. His team focuses on charging competitive rates for high-quality products to maximize returns, even when occupancy rates fluctuate.
Noreen McGillion shared her focus on controlling costs and tracking key metrics, particularly for labor and food costs. Controlling the controllables—such as labor hours and housekeeping metrics—is essential to ensure that properties operate efficiently across the board. Financial management also requires a deep understanding of both operational and revenue metrics to maintain profitability during unpredictable times.
The Road Ahead: Future Trends in Hospitality Operations
Looking ahead, the panelists agreed that the future of hospitality will be shaped by continued technological advancements. From remote check-ins to energy-efficient building systems, technology will continue to improve both guest experiences and operational efficiency. The integration of technology into operations is no longer optional; it is a necessity for staying competitive.
However, the human element of hospitality remains essential. Panelists cautioned that while technology can enhance the guest experience, it should complement service, not replace it. Ensuring that properties maintain the personal touch that defines hospitality is key to fostering guest loyalty and ensuring long-term success.
The BITAC Owners panel underscored the evolving nature of hospitality operations, with technology playing a significant role in shaping both guest experiences and back-end efficiency. The panelists emphasized, hospitality should never lose sight of the importance of personal service, employee engagement, and strong internal culture. In this era of rapid change, operators who can successfully integrate innovation with the core values of hospitality will be best positioned for success.