Navigating Operational Challenges in Hospitality: Insights from BITAC Owners 2024 Panel

By Gavin Fraser | November 21, 2024

At the BITAC Owners Fall 2024 event, a panel of industry leaders came together to share their valuable insights on the shifting operational strategies and challenges faced by properties within the hospitality industry. I had the privilege of moderating this discussion, where each panelist shared their unique expertise and experiences across areas such as procurement, operations, and technology.

The panel featured Joe Felice, General Manager of Embassy Suites by Hilton Detroit Metro Airport; Tony Nieves, Head of Strategic Sourcing/Procurement at Oasis Experiences; Noreen McGillion, Regional Director of Operations at InterMountain Management; and Martin Thornros, President of Convergent Services. Each panelist discussed how their respective roles have shaped the operational landscape of their properties and organizations, providing a roadmap for addressing current challenges and ensuring sustained success.

Personalizing the Guest Experience

Joe Felice, representing Embassy Suites by Hilton Detroit Metro Airport, emphasized the importance of adapting operations to meet the evolving needs of guests. His primary focus is on enhancing the guest experience for corporate business travelers. While digital services, such as Hilton’s connected room, where guests can control their TV and thermostat from their phone, have been incredibly successful in streamlining the guest experience, not all guests embrace technology to the same degree. Some guests love digital key access and smart room control, while others still prefer a traditional experience, interacting with front desk staff for personalized recommendations. This balance between technology and human interaction has been crucial in maintaining both modern conveniences and a personalized, welcoming atmosphere for guests.

Bringing Hospitality to the Water

Tony Nieves, whose company Oasis Experiences operates a range of mixed-use boat marinas and hospitality properties, offered a unique perspective on operational strategies drawn from the marina industry. With almost four decades of experience in the industry, he is applying hospitality principles to the marina environment, improving service offerings and guest satisfaction.

The marina industry was initially underserved in terms of service levels, but by incorporating hospitality-driven practices, the company has been able to offer boaters a more immersive experience. Now, their marinas offer not just docking, but a full suite of services, including food delivery to boats, retail shops, and even amenities like ice deliveries—all designed to improve the overall experience.

Tony emphasized the need for consistency in delivering these services across various properties. While the guest experience varies based on location—from the East Coast to the Midwest to Texas—the goal is to ensure a high standard of service regardless of the marina’s environment or seasonality.

Training, Loyalty, and Consistency in Operations

Noreen McGillion, Regional Director of Operations at InterMountain Management, highlighted the critical role of employee training and guest loyalty in achieving operational excellence. InterMountain Management has been recognized by Marriott for outstanding intent-to-recommend scores, underscoring their commitment to fostering loyalty through service excellence.

However, Noreen also acknowledged the challenges of maintaining high levels of service in a competitive labor market. Many new employees have entered hospitality post-pandemic, and they require significant training to ensure they understand the nuances of guest service. While self-check-in kiosks and mobile keys have become common, she cautioned against over-reliance on automation. Hospitality is about human connection. Some guests appreciate the convenience of digital solutions, but many still want that warm, welcoming presence from a front desk agent.

In response to labor shortages, Noreen’s team has implemented a “Climbing Mountains” training program designed to prepare assistant general managers (AGMs) for future leadership roles. By promoting from within, the company ensures that the leadership pipeline is strong and creates an environment where staff feels supported and empowered.

The Role of Infrastructure

Martin Thornros, President of Convergent Services, shared his perspective on the vital role that technology infrastructure plays in the modern hospitality environment. Whether it’s room controls, Wi-Fi, or security systems, the job is to ensure that technology works seamlessly for both the property and the guest.

Martin discussed recent projects where low-voltage systems were essential for hotel renovations, such as those in San Diego and Boston. While both hotels had similar needs, the approaches differed based on the property’s long-term goals. The San Diego property was undergoing a short-term rebranding, which led to a cost-conscious approach, whereas the Boston hotel, a long-term hold, required a more extensive, high-quality cabling solution. This differentiation between short-term and long-term investments highlights the importance of aligning infrastructure decisions with a property’s broader financial strategy.

Martin also addressed the increasing reliance on technology in hospitality, such as integrated Point of Sale (POS) systems across resorts. At a recent ski resort project in Utah, a unified POS system was implemented to eliminate inefficiencies and allow the hotel to streamline operations. Such integrations, though challenging, significantly improve both back-end operations and the guest experience.

Addressing Labor Shortages and Retaining Talent

Labor shortages remain a pervasive challenge for the hospitality industry, but the panelists agreed that innovative solutions, including automation and investment in training, can help address the issue. In Detroit, Joe Felice noted that the labor pool has started to recover post-pandemic, although new hires require more extensive training.

Tony Nieves pointed out that the hospitality industry must continue to attract and retain employees by offering competitive wages and creating a positive work culture. The hospitality sector needs to adapt to evolving labor dynamics by improving training and retaining employees through benefits like referral bonuses and career development opportunities.

Meanwhile, Noreen McGillion stressed the importance of fostering a work environment where employees feel valued and supported. The goal is not just to fill positions, but to nurture talent and create long-term careers in hospitality. By providing the training and support necessary for employees to grow, companies can maintain strong teams and reduce turnover.

The Future of Hospitality Operations

As the panel wrapped up, the discussion turned to the future of hospitality operations. All panelists agreed that technology, particularly in areas like automation and smart room controls, will continue to shape the guest experience. However, as Noreen pointed out, it’s critical that technology does not overshadow the human element of hospitality.

For Martin, the integration of low-voltage systems and smart technology will be key to improving operational efficiency in the coming years. The demand for smarter, more efficient infrastructure will only grow as hotels and resorts continue to embrace digital transformation.

Joe echoed these thoughts, noting that while technology will play an important role in shaping operations, hotels must focus on providing exceptional service to remain competitive. Technology should be a tool that enhances the guest experience, not replace the personal touch that makes hospitality so unique.

The panel underscored the importance of balancing technological advancements with the human touch, fostering employee loyalty, and maintaining operational consistency. As the hospitality industry continues to evolve, these strategies will be crucial in ensuring long-term success and guest satisfaction.