Many companies are just opening up to flash sales; for hotels it’s about filling rooms and reaching out to new guests. Some are pulling away from them due to profit loss and lack of returning visitors. I reached out to my mentor Larry Mogelonsky and asked his opinion on the use of daily deals companies in the hospitality industry.
In his typical cut-to-the-chase style, Mr. Mogelonsky had this to say, “Flash sales are heroin.” Despite the initial gratification of filling beds, it is not worth the loss of profit. Many people have discussed “training the guest” and I believe this falls into the same category. Why would consumers return to paying full price (or better put, full value) for a room they know they can have 85% off if they only wait a few weeks? They’ve been trained to wait for the sale.
Aside from undercutting the value proposition of the property, he explained that displacement of regular patrons has become a secondary concern. So, imagine you have a favorite local spot for lunch or coffee, and they run a flash deal for a predetermined period of time. While they may see a huge increase in the number of new patrons during that time, the previous loyal visitors no longer enjoy the space due to overcrowding. A few weeks later, the deal seekers have moved on to greener pastures and the regular guests have found a new favorite spot. The initial increase in business does nothing for long term profits.
Most daily deals companies operate the same way; hotels lose revenue first by discounting the rooms, and second by paying a commission to the flash sales company. Mr. Mogelonsky tells me that the only time he could see turning to flash sales is in an event such as a massive cancellation – when a huge block of rooms need to be filled very quickly, but never as a day-to-day program. Even then, consideration must be taken for the repercussions and every effort must be made to turn these flash-sale guests into loyal ones.
Have you had experience with flash sales? What is your advice for fellow hoteliers?
In honor of National Waiters Day, I wanted to take a look at some of the rudest – and oddest – guest behaviors and the various ways staff can handle them. I did some research with various people in the service industry and paired it with my own experience and came up with a list of the most annoying, and all too common, guest behaviors.
Top 5 Pet Peeves from the Service Industry:
The Fix:
There isn’t one – train your staff to be cool under pressure and never take revenge. A good venting session at the end of the week with a free meal for the staff member with the rudest guest may help alleviate some of the tension.The Fix:
A great server will make enough each shift to cover a table or two of non-tippers, but managers should not charge employees for guests who walk on their checks, and tips should belong only to the person who earns them.The Fix:
Cut people off when appropriate, and get your server some back up if needed.The Fix:
Let your staff know which issues they should and should not bring up with parents of young guests, and keep a stock of non-messy snacks for the less patient youngsters.The Fix:
Your staff should know that they can refuse to serve someone who is treating them inappropriately – take over the table for them or ask the patrons to leave.While speaking with some friends about this post, I came across a few stories that were less pet peeve and more…well…weird.
Top 3 Odd Stories:
What are some of the rudest (or oddest) behaviors you have come across? How you do you handle them?
Our Summer 2013 GEM Report is all about hotels who embrace the family factor, and finds that women make 80% of travel decisions. When it comes to making family vacation plans, nobody is more influential than Mom. In light of this, I’d like to share further details on the five moms who made it to the GEM’s must-read category this season.
Be sure to read the full report, and sign up for future reports at this link.
The increase in smartphone and tablet use and the push to deliver a mobile experience has led to arguments over mobile web versus branded apps.
The debate boils down to this question: Are customers likely to download and retain an app for one experience, one stay, or one hotel brand?
The answer is probably no. Depending on personality type, most people are likely to either remove the app after their stay, or forget that it’s on their phone or tablet.
But there is value in a branded app for both the hotel and the guest. Hotels are able to remain connected to guests through the entire journey from booking, to requests, and even guest comments and reviews.
Guests can have access to last-minute discounts on hotel amenities, hotel recommended dining and entertainment, and easy contact with various staff members for any need they may have during their stay (on-site or off).
So how do you keep your app from being a one-trick pony, keeping it on your guests’ devices and useful to them off property?
One suggestion is to utilize loyalty points. Many hotels are offering loyalty points to guests who download their app, and retention can occur by increasing the value after the download. Rewarding comments or hotel surveys through the app or even for suggestions regarding the app itself.
Another way to do it is to make the app useful when the guest is no longer on your property. Here are some questions to think about:
If you can answer yes to these questions, then your app is bringing value to your guests every time they travel. Not only that, it’s bringing value when they have a free Saturday with the kids and want to find something new closer to home. It brings value when they are planning a special date or have a friend visiting from out of town. And it brings value back to you when they remember that and come back next time.
Monscierge headquarters is located in Downtown Oklahoma City, blocks away from the Oklahoma City National Memorial and a few miles away from Moore, OK. Many of us were born and raised in Oklahoma and know first-hand the resiliency of our neighbors.
Oklahomans are asked on occasion why we would want to live in Tornado Alley. We answer with a bit of bravado, rubbing the toe of a boot in the red dirt while brushing off any claims of fear. We have the best meteorologists in the world, we know how and when to prepare, and we have a battle plan. In reality, anyone who has stared down an EF5 tornado is on a first-name basis with fear.
So why do we stick around? That part is easy. It’s what happens later. We are fiercely proud of our extreme weather, breathtaking sunsets, the dirt that dyes everything red, our heritage, and the many natural wonders our state holds; but those are secondary.
We are here because of the men and women who rush into a building seconds after a bomb goes off to look for survivors. We are here because of ordinary people who step out of a cellar to find everything they have blown away, and get right to work pulling their neighbors from the rubble. We rejoice with our neighbors when loved ones are found, and we grieve with the families of those lost. We delight in the stories of survival, and those who are gone leave an indelible mark on our hearts.
Our people pull together with a combination of compassion and hard work, innovation and kindness, and we make things happen. Within hours, Oklahoma children tug at our heartstrings as they line up with donations from emptied piggy banks or lemonade stands. Local businesses get creative. In Moore, we have people changing tires on the vehicles driving through the debris, restaurants are staying open and serving people free of charge, eye doctors are replacing lost glasses and contact lenses, and hotels are offering snacks for workers as well as hosting numerous people who have lost their homes.
So while living in the middle of Tornado Alley comes with its share of troubles, we love our home for a natural resource you can’t find anywhere else in the world – the Oklahoma Spirit.