Some key points of the hospitality industry I studied

1. For the past 15 years I have provided outstanding customer service in the retail, transportation, financial
and government Industries. Although I have been highly successful and have been recognized by my
peers, employers and clients for my dedication and achievements, my current and long term goal is to
transition that same passion and success to the hospitality industry. To ensure I could provide immense
value to a hotelier, I began a process to educate myself on all the important attributes and challenges of
the industry.
The first objective was to determine exactly what those attributes and challenges were. To accomplish
this task, I identified the most prestigious and influential hospitality schools & universities relying on
professional publications and the internet (US News and World Report, The Princeton Review, The
Journal of Hospitality & Tourism Research, and The bestschools.org etc...). Once I had a finalized list of
the influential hospitality schools & universities, I went to each individual school’s website and compared
the courses they offered vs. the other schools offerings. Any course or subject matter which was offered
by multiple schools helped me pinpoint which topics to study.
The next step was to gather the resources. The resources I employed consisted of internet searches,
textbooks, and industry publications. Once I had studied all the material, my next step was to speak with
a variety of hospitality professionals to obtain their perspective and guidance on further research via
social media sites like LinkedIn and Facebook.
Another strategy was to gain a greater understanding of guest perceptions regarding the hospitality
industry. Ex: What amenities are most important to them? What are guest perceptions on the industry
practices? What factors contribute to pleasant stays and which factors lead to dissatisfaction? To uncover
the answers to these important questions I dissected hundreds of reviews onTripadvisor.com. Finally I
studied a large sample of the J.D. Power and Associates 2011 Customer Service Champions to examine
any common traits among these champions or if any unique trait existed.
In addition, I was very fortunate enough to receive some advice from some of the AH&LA Stars of the Industry award
winners and some of the major chain and top third party management winners. This presentation is a small sample of
the hospitality topics I have studied and by the end of this presentation, I am confident that the viewer/reader will be
convinced of the commitment I have to the hospitality industry and the benefits I would bring to their property.

2. Hospitality Research
By Kirk Jensen
2012

3. For the past seven months in order to strengthen my
understanding of the hotel industry and to pursue a career, I
immersed myself in the studies, research and works by some of
the most experienced and knowledgeable personal in the
hospitality industry.
With the in-depth knowledge I acquired, coupled with my extensive
customer service experience and Microsfot Excel skill set, I firmly
believe that I can provide significant contributions to a property or
chain seeking a consummate team player with the right attitude
and enthusiasm. For verification on how a customer service
oriented professional such as myself could provide immense
value, just copy these link to your browser
http://www.hotelmanagement.net/guest-satisfaction-trumps-hotel-location-study-says
http://www.hotelnewsnow.com/Articles.aspx/6454/ADR-guest-satisfaction-Opportunityand-action
These links provides reinforcement on the importance guest
satisfaction is to a property and/or a chain.

4. Areas of Study
Branding
Loyalty-Satisfaction
OTA- Intermediaries
Pricing
Guest Perceptions
Revenue Management
Food & Beverage
Innovation
Spa Industry
Casino-Gaming
Industry
Uniform System of Accounts
for the Lodging Industry

5. Areas of Study
Golf Industry
Workforce Scheduling
Perceptual Mapping
Rebranding and Rescaling
The Most Important Economic Indicators
Rate Fences
Franchised
vs.
Independent
Business vs. Leisure Travelers

6. Hotel & Hospitality Study Statistics
35 Free Standing Spas
Over 100 Hotel Brands
6,477 Hotels including 437 Extended
Stay Properties
174,000 Stays
59 Resort Based Spas
208,541 Guests
Over 500 financial
statements
100 Casinos & 120 Indian Gaming
Hotel/Casino brands
Over 150 Reports & Studies
Over 200 PhDs and Industry Experts
Over 20 Universities-Business
Schools

7. Sampling of University-Business School Titles
Assistant professor of
services marketing
Associate professor
of management and
organizational
behavior
Associate
professor of
finance
Professor of
entrepreneurship
and personal
enterprise
Associate professor of operations
management
Professor of innovation &
dynamic management and
professor of strategy
Director of
the center
of tourism
research
Professor of
information
systems
Clinical associate professor in the School of Hospitality, Tourism, and
Sports Management

8. Sampling of C-Level & Distinguished Titles
Managing Director at The Peninsula Beverly Hills
Marketing Analyst for the Venetian Resort Hotel Casino
President of Smith Travel Research
Vice President CWT Solutions Group, Asia Pacific
Chairman and CEO of Revenue Analytics
Marriott Professor of Lodging Management and Professor
in Charge of the Graduate Program
Executive Vice President of Marketing, Four Seasons Hotels
& Resort
CEO, Revpar Guru
Senior Vice President, Real
Estate/Asset Management
Hilton Hotels Corporation

9. Sampling of C-Level & Distinguished Titles
Retired President of the Four Seasons
General Manager of The Mansion on Turtle Creek
Executive Vice President of Operations of Embassy Suites
General Manager of Disney's Polynesian Resort
Brand Manager of Courtyard by Marriott
Vice President of Hotel Operations Caesars Palace
Brand Manager of Marriott Residence Inn
President of Super 8 Motel
General Manager Homewood
Suites

10. Sampling of Accolade and Award Winners Who Provided
Some Guidance
Certificate of Excellence Award from TripAdvisor
Condé Nast Traveler's “Best In The World" Readers Choice
Award
A U.S. News & World Report
AAA Four
Best Hotels in the USA 2012
Diamond Award
Finalist
Winner
Expedia Insiders Select Hotel
Wyndham Hotel Group's Outstanding Revpar Performance
Award Winner
Marriott International, Inc Hotel of the Year Winner
InterContinental Hotels Group,"Torchbearer Award"

11. Branding
Rebranding & Rescaling
Brand Extension
Brand Erosion
Brand Positioning

12. Loyalty & Satisfaction
The differences (if any) of one-time guests and
frequent/loyal guests when selecting a hotel and their
satisfaction level
Should hotels offer
loyalty programs to
guests who book their
stay on internet–based
travel intermediaries?
Do loyalty programs really work?
Why casino loyalty programs outperform hotel loyalty
programs
The advantages-disadvantages-implications of loyalty
programs from the hotel and guest perspective

13. Online Intermediaries and Online Travel Agents
Advantages vs. Disadvantages of using intermediaries
The ADR, Revpar, and Occupancy consequences of
completely relying on, totally avoiding and
successfully integrating online intermediary
relationships
The result of rate inconsistency among the online
distribution channels and why rate parity matters.
The rise, descend and reemergence of the online
intermediaries and why they are specially
targeting the hospitality industry

14. Pricing
The financial dynamics of pricing rooms above and below a
hotel’s competitive set during economic expansion and
contraction
Why GOPPAR should be implemented in addition to RevPar
to measure performance
Rack
Rate
Best Available
Rate
DemandVariable Based
Pricing
Duration Controls
Last Room
Availability
Value Pricing
FIT Rate
Rate Fences
Reference
Pricing

15. Guests Behavior Reactions and Perceptions
How to quote prices to various demographic guests so they
perceive the rates to be significantly more honest,
acceptable, reasonable and fair
Do guests become more receptive to industry
practices over time?
Does educating guests about costs, advantages and pricing
practices alter their judgment of price fairness
What service and quality means to each generation and what
factors are important to them when selecting a hotel
What attributes contribute
to the perception of price
unfairness
Conjoint analysis & Discrete
choice analysis (DCA)-based
customer choice modeling
techniques

16. Revenue Management
Which hotel segments have historically utilized and
underutilized revenue management pricing
What are the biggest issues that
revenue managers are facing
and what aspects of RM need
improvement
How revenue management has
extended to other parts of the hotel
(space, spa, and food & beverage)
How the type of hotel in addition to ADR and occupancy
influences a hotel’s profitability
What revenue management techniques are most profitable
and least profitable in economic expansion and contraction

17. Revenue Management
In terms of NOI percentage, what are the most profitable hotel
types
What are the most profitable hotels
in terms of total NOI dollars
The past and future of revenue
management
What is a bigger influence to a hotel’s
bottom line, occupancy or ADR?
How travel managers and industry consultants are advising
their clients to handle revenue management contracts with
hotels and why
The application and measure of success of RM in other
industries (NHL, MLB, PGA)

18. Food and Beverage
The effect tipping, service-charge policies and serviceinclusive pricing have on the perception of expensiveness
What pricing policy has proven to be perceived as less
expensive while simultaneously increasing average order
size
Optimal
restaurant
table
configuration
Which one of the brand equity attributes (brand awareness,
brand image, brand loyalty, and perceived quality) has the
strongest direct effect on revenue
Which restaurant wait-list policies and fences do diners find
acceptable and which ones do they the deem as being unfair

19. Franchising
Loyaltyy & Satisfaction
Is there a correlation between customer
satisfaction and the percentage of franchised
properties.
Why franchises change brands
Why independent hotels
and national chain hotels
are joining forces
How independent hotels
can successfully compete
with the large chains
Advantages and
disadvantages of
being
Independent vs.
being part of a
national brand

20. Spa Industry
How the design of the spa and treatment rooms can
increase/decrease profits
Global best practices for the spa industry
Historically, what is the optimal number of treatment rooms
to achieve the highest RevPat?
The advantages &
Backbar
disadvantages of free
Deductions
standing spas vs
resort/hotel spas
How to Make Smart CostCutting Choices
Key components to spa
revenue maximization

21. Golf Industry
How the events of September 11, 2001 and the financial
crisis of 2003 affected golf resort occupancies
compared to the national average.
In terms of ADR, occupancy
and RevPar what is the
difference in comparison to
resort properties and the
difference compared to all
properties
Perceived fairness practices in the golf industry

22. How to incorporate guest
data to drive gamification and
to help create customized
experiences.
Why casino loyalty
programs are more
effective than hotel
programs?
How Tribal Casinos
Compare to
Commercial Casinos
What domestic casino regions have the highest
gaming & accommodation satisfaction and why?

23. Innovation
How to use interactive methods to elicit guest
perceptions and the benefits those methods
have over the traditional methods
What different sources do
business vs. leisure
guests use as hotel
information sources
What internet/social
media sites do female vs.
male travelers consult for
hotel information
What information sources do travelers consult during the
various stages of the hotel section process(beginning,
middle and late stages).

24. Innovation
What characteristics do technology –ready
individuals possess
What percentage of hotel
internet searches convert
to online reservations and
where do searchers go if
they switch to another
booking method
What demographic attributes
differentiate guests who use
the internet for hotel searches

25. Best Practices
Best practices from some the industry's most prominent
chains and properties:
The Peninsula Hotel
The Pierre
The Waldorf Astoria
The Greenbrier
The Four Seasons
Embassy Suites
The Mansion on Turtle Creek
+ 74 otheir
hospitality firms
The Breakers Hotel
The
Boulders
Hotel
Wyndham Hotels and Resorts

26. J.D. Power and Associates 2011 Customer Service Champions

27. Guest Services Satisfaction
How much and to what extent in the lodging industry does
employee satisfaction mean and what it means to the
industry’s best practice champions?
What strategies do hospitality firms employ to increase
employee satisfaction?
What compensation
systems more positively
affect employee
performance?
The true costs of employee turnover
(Hard, Soft, and Opportunity)
Differences of satisfied stayers, satisfied switchers,

28. The
Resort
Industry
The MICE
Segment
Cruise
Industry
The
Extended
Stay Market
Corporate
Accounts
Franchise License
Agreements
Uniform System of Accounts for the Lodging Industry (USALI)
Measuring
Housekeeping
Performance
Shoulder Season
Revenue
Enhancement

29. Pre 1990 Hotel Industry Milestones
In the 1980’s many hotel assets
were highly leveraged, with
loan-to-value ratios in the 75- to
80-percent range and
impossibly low debt-coverage
ratios.
In 1953 Marriott becomes the
first hotel stock opening on the
NYSE at .25 a share
In 1970 Hilton becomes the first
billion-dollar lodging and food
service company and the first to
enter the Las Vegas market
1988 Extended stay
segment introduced
with Marriott's
Residence Inns and
Holiday Corporation's
Homewood Suites.
1983-Westin is the first major hotel
company to offer reservations and
checkout using major credit cards.
VingCard invents the optical
electronic key card
1985 American Airlines announced
the “Ultimate Super Saver Fare”
which is widely viewed as the birth
of revenue management

30. Post 1990 Hotel Industry Milestones
In 1993 The hotel
industry saw the
beginning of a 5 year
surge. Hotel values
increased at an
average annual rate
of well over 20%
Hotel values fell by 9.8 percent
in 1990. An Arthur Anderson
study reveals that us hotels lost
5.5 billion dollars
In 1991 With the recession in full force and
the Gulf War underway, hotel values fell by
an additional 27.7 percent. Average
occupancy dropped to 60.8 %, a 20 year low.
Industry sees record losses, 61.8 percent.
1995 Choice and Holiday Inn are
the first to introduce online
booking capability.
In 2001 the industry is rocked by the
events of September 11. U.S. hotels lose
more than $700 million in revenue in the
two weeks immediately following the
terrorist attacks
1996 Best Western celebrates
its 50th anniversary, making
it the oldest continually
operating brand.

31. 2000’s Hotel Industry Milestones
2004 After three
years of declining
revenues, the U.S.
lodging industry
returns to positive
profit growth.
In 2006 and 2007, the top 30
hotel brands and the industry
as a whole increased the
hotel brand website booking
contribution to as high as 76.1
Twenty-four new hotel brands launched
between 2005 and 2006, bringing the total
number of brands to 210 (compared to 81
brands in 1980).
The average daily rate (ADR) for a U.S. hotel room breaks the $100.00 mark. ADR reaches $103.87.

32. American Hotel & Lodging Association
Market Metrix
The Center for Hospitality Research at Cornell University
Hotelrevenuetools.com
HotelExecutive.com.
HotelMarketing .Com
Wharton – University of Pennsylvania
PKF
Hospitality
Research
The International Society of
Hospitality Consultants
Hospitality Asset Managers Association (HAMA)
Hospitality
Sales &
Marketing
Journal of Revenue
Association
& Pricing
International
Management
WWW.HOTELSMAG.COM
The American Customer
Satisfaction Index
Hospitalitynet.org

33. ASIA Spa Institute
The Day Spa Association
American Gaming
Association
HotelManagement.Net
Professional Beauty
Association
IBIS World’s Health Spa Resorts market research report
Valuation Resources.com
Gaming Industry Observer
HVS Golf Services
Associated Bodywork and Massage
Professionals
International Society of Hospitality
Consultants

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35. Favorite Hospitality Quotes
“Whether you were a greeter at Wal-Mart or a sales manager or bookkeeper in another industry, these are
skills that can transfer easily to the hospitality industry.” Cathy Keefe
“When hospitality becomes an art it loses its very soul” Max Beerbohm
“There is no hospitality like understanding.” Vanna Bonta
“You’ve got to make your employees happy. If the employees are happy, they are going to make the
customers happy." John Willard Marriott
“The reason for our success is no secret. It comes down to one single principle that transcends time and
geography, religion and culture. It’s the Golden Rule – the simple idea that if you treat people well, the way
you would like to be treated, they will do the same.” Isadore Sharp
“Employees must be motivated rather than managed” Embassy Suites
“Technical skills can be taught to employees but without the right attitude and motivation the guest still
may leave unsatisfied.” John Sharpe
“Selecting employees with the right “attitude”, out-going, organized, and think on their feet” David Bowles.
“Hotels attempt a market position in an effort to boost market share. In the end however, position is at the
mercy of the customer.”
Master the hotel business and the business of the hotel
Hire for attitude, train for skill