How to gain a competitive advantage today
from HotelNewsNow (July 10, 2015)
Now is the time to gain a competitive advantage, because soon it will be time to draft your 2016 business plans and budgets. Will you be ready?
The classic model of competitive advantage is Michael Porter’s five forces shown below. This is still a useful model for the hotel industry.
The most interesting part of this in 2015 is the “substitute” portion of the grid.
This is what Airbnb is all about and it will have had a huge impact on our industry by the time most people wake up to it.
According to Porter, “the existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives.” –
Comic-Con: Lower hotel rates to keep the con?
from San Diego Union Tribune (07.03.2015)
Bob Rauch on the EconoMeter panel as they discuss if hotels should lower hotel rates to keep Comic-Con
Should hotels agree to limit their room rate increases during Comic-Con to keep the convention in San Diego?
Bob Rauch: YES
“While those who do not agree to limit increases do not understand or care about the incredible economic impact of this event, it must be clear what determinants are used in limiting rate increases. Rate gouging is not acceptable, but it is also important to remember that room rates are only one factor in keeping Comic-Con in San Diego.
The convention center expansion is also paramount to keeping Comic-Con!”
The Science of Digital Marketing
We’ve seen a quantum shift from hospitality as an art to hospitality as a science with the advent of digital marketing. For a Wikipedia definition, digital marketing is the use of digital sources based on electronic signals like Internet, digital display advertising and other digital media such as television and radio. At its heart, digital marketing centers around the Internet which has become a very powerful medium. Some of the trends that we have seen occur over the past several years include online booking, mobile bookings, more sophisticated revenue management, distribution channel management and social media marketing.
Raise taxes for infrastructure?
from San Diego Union Tribune (06.27.2015)
Bob Rauch on the EconoMeter panel as they discuss if taxes should be raised to improve infrastructure.
Must taxes be raised to fund the ever-increasing bill for infrastructure and deferred maintenance throughout the country?
Bob Rauch: NO
“Raising taxes is not the solution because there is no guarantee that increased tax revenue will be directed towards infrastructure. Public-private partnerships are key to meet our needs and could include raising private dollars for Balboa Park with appropriate naming rights, transient occupancy tax increases for hotels in the convention center district and additional tolls for roads.”
Overtime Pay
from San Diego Union Tribune (06.19.2015)
Bob Rauch on the EconoMeter panel as they discuss if more people should receive overtime.
Should more people be made eligible for overtime pay?
Bob Rauch: NO
“California, in particular, has very well defined guidelines for employees who are exempt from overtime vs. not, and the proposed federal guidelines will only cause confusion. Arguments for increased overtime are being used to overlook the real discussion about appropriate wage and salary levels for positions across all industries.
Market conditions should dictate actual wages and overtime eligibility, not additional burdensome government mandates.”
IMF to Fed: Raise rates?
from San Diego Union Tribune (06.14.2015)
Bob Rauch on the EconoMeter panel as they discuss the Fed should raise interest rates.
Do you agree with the International Monetary Fund that the Fed should wait until next year before increasing interest rates?
Bob Rauch: YES
“If the Fed decides to raise rates in 2015, the psychological impact to stunting the economy would be greater than the actual impact to the economy that usually occurs about 12 months after a rate change. I would cautiously increase rates in 2016 at 25 basis points at a time. This will keep inflation in check and keep the economy moving forward at a time when it could run out of gas if rates rise too quickly”
FIFA corruption: Is sponsor boycott the answer?
from San Diego Union Tribune (06.07.2015)
Bob Rauch on the EconoMeter panel as they discuss the ethics of business support for sports.
Should businesses withdraw endorsements from FIFA’s soccer events because of alleged kickbacks and corruption?
Bob Rauch: No
“If FIFA agrees to clean up their shop, they should be given another chance. The corruption seems to be significant and at the highest levels of the organization, so cleaning up is a must and not by the current senior officials. Having said that, they are likely not the only sport to be troubled by corruption and kickbacks.
Politics, sports and business have various amounts of this and we should all be diligent in choosing partners and endorsements.
”
The Transformation of the Hotel Industry from Art to Science
The venerable institution of hospitality has been turning around over the past two decades. The combined impact of shifting demographics and new technologies are the primary catalysts for this metamorphosis. The Internet provides consumers an opportunity to think of the hotels as commodities. Hotels had been lowering prices to gain a competitive advantage from 2009 to 2013 but are now raising prices as quickly as possible, hoping that the music won’t stop soon. The many changes occurring today are proof positive that this industry is no longer limited to being an “art.” We have officially moved into the John Naisbitt coined “hi tech, hi touch” world. Led by revenue management but now including distribution channel management, social media marketing, Web 2.0 or 3.0, call it what you like and more, this industry has been transformed. (more…)
The Lucky 7
from CasinoEnterpriseManagement (June 1, 2015)
The Lucky 7: Top Hotel and Gaming Industry Trends in 2015
2015 will be arguably the best year in the history of the hospitality industry. To be able to optimize revenues and net income, hoteliers and casino operators alike must take advantage of the strong market, in part by understanding the latest trends that are shaping our industry.
Why healthful hotels are so important
from HotelNewsNow (May 28, 2015)
Health and wellness trends are a new reality to our society and establishing strategies to embrace this trend will help you see the returns in the months and years to come.
Health and wellness trends will continue to drive customer decisions in the hotel industry in 2015.
These trends include eating healthy foods, exercising and getting sound sleep while on the road.
Road warriors and leisure travelers alike want options that make them feel just like they are at home.
This includes providing nutritious food options, fitness activities and in-room fitness amenities.