Resort ConferenceResort Conference

Webinar SeriesWebinar Series

The Case for Innovating NOWThe Case for Innovating NOWwebinar will begin shortlywebinar will begin shortly.

If you need technical assistance with the webcast, contact us athsmai@commpartners.com

and we will assist you immediately.

www.resortconference.com

==

The Case for Innovating NOWThe Case for Innovating NOW

May 6, 2009

2:00 pm Eastern

www.resortconference.com

The Case for Innovating NOWThe Case for Innovating NOW

www.resortconference.com

Today’s Moderator:

Bob Gilbert

President & CEO

HSMAI

Wish you were here!Wish you were here!

Image of Courtesy of PGA National

How many people are participating in this

webinar at your location today?» 1

» 2

» 3

» 4

» 5

» 6

» 7

» 8 or more

Poll Question #1Poll Question #1

www.resortconference.com

TodayToday’’s Speakers Speaker

Scott W. Anderson

President

Kohler Company

Hospitality and Real Estate

Scott.Anderson@kohler.com

www.resortconference.com

A perspective on the

Industry

Feb=-21%

Luxury Consumption IndexUnity Marketing Tracking Study

10097.8

102.7

96 95.6

100.9

104.7

94.4

104.8

113.2

99.2

103.3

98.2100.2

96.2

87.4

63.6

54.4

51

40.3 40.3

35

45

55

65

75

85

95

105

115

125

Dec-0

3

Feb-04

Apr-0

4

Jun-

04

Aug-0

4

Oct-04

Dec-0

4

Feb-05

Apr-0

5

Jun-

05

Aug-0

5

Oct-05

Dec-0

5

Feb-06

Apr-0

6

Jun-

06

Aug-0

6

Oct-

06

Dec-0

6

Feb-07

Apr-0

7

Jun-

07

Aug-0

7

Oct-

07

Dec-0

7

Feb-08

Apr-0

8

Jun-

08

Aug-0

8

Oct-

08

Dec-0

8

So What Are You Going To So What Are You Going To

Do?Do?

In these economic times you

have a choice

Without the danger there cannot arise the opportunity.

�Danger

�Opportunity

The Chinese Characters for CrisisThe Chinese Characters for Crisis

Three Approaches to Hard Three Approaches to Hard

TimesTimes

There may be more but we only have a

short time.

The OstrichThe Ostrich

The OstrichThe Ostrich

• Sit in the office

• Move papers around

• Blame someone else

• Don’t get involved

• Find other Ostriches to play with

The Conservative

The Conservative ApproachThe Conservative Approach

• Hunker down, assume no one is doing well

• Reduce expenses

• Reduce staff

• Wait for better times to return

• Your Sales and Marketing Motto:

“We are no worse than anyone else”

The MotivatorThe Motivator

Success is how high you

bounce when you hit

bottom. George Patton

The MotivatorThe Motivator

– If I can’t increase sales I will increase market share

– It is more fun to increase sales than reduce

expenses so I will start there

– Looks to old ideas and adds a new twist

– Understands you have to kiss a lot of frogs to find

a prince so they like kissing frogs

The MotivatorThe Motivator

– Realizes financial constraints breeds creativity

– Embraces new ideas from everyone:

• Reads every day

• Listens to customers and staff

• Even bad ideas have a kernel of something

interesting or valuable

A word about Ideas

New ideas pass through three phases:

1. It can't be done.

2. It probably can be done, but it's not

worth doing.

3. “I knew it was a good idea all along!”

=

The MotivatorThe Motivator

• Finds New Ways

If you do what you always did,

you won’t even get what you

always got.

I donI don’’t know of any home runs out theret know of any home runs out therebut I have found some pretty interesting bunt singles and some doubles

• Let’s start with your current customers

– The Emerald Group

– Channel conversion

– Think Strawberries-Creating a revenue culture

– Turndown cards

– Don’t forget to take care of them while they are

there!

=

Outbound Calling (The Emerald Group)

• Identify your booking window

• Find the most knowledgeable reservations agents

• Call your guests

Results in 2008:

• $604,000 in incremental revenue in Golf, Spa and

Dining

Channel ConversionChannel ConversionMoving them from where they are to where you want them

• Typical 3rd party OTC contractual arrangement

– 25%-30% off lowest available rack rate

• 3rd parties are great to find new customers ONCE!

– If they book with you again using that same channel; shame on you.

• Let’s do the math:

– $100 room…Net from 3rd party = $75; offering the guest a 10% off the

lowest rate for a return visit …Net = $90.00

• How to do this:

– Email link

– Front desk coupon

– Post departure blast

Create a Revenue Culture

• James Lavenson-Plaza Hotel 1973

– http://www.easytraining.com/strawberry.htm

• Talk with your staff

• Hold training sessions

• Pick a “strawberry” in each department

• Measure your “strawberry” and celebrate your successes

The Turn Down Card

The Golden TriangleAre you taking of all three legs equally?

Guests

Employees Ownership

Online surveysOld time comment cardsFocus Groups

Employee Opinion SurveysInterviews Financial Results

Finding New Customers

• The desires of Generation X and Y

• Data Mining

• Market Segment and Market Source

– Are you getting your fair share from each?

• Generate Trial Through Specific Offers

– Then be sure you keep them when they try your resort.

Generation X and YGeneration X and Y

These two groups make up 30% of all leisure travelers in These two groups make up 30% of all leisure travelers in the US, but 35% of the weekend traveler populationthe US, but 35% of the weekend traveler population

� 52% describe themselves as “Enjoying the pursuit of what’s clearly original” something incongruous or a little out of the ordinary

� 62% are disenchanted with over-manicured and over processed

� 68% take a majority of their vacations with another adult and children

� In 2000 26% of the TOTAL population traveled with children, in 2008 38% traveled with children

� In 2008 84% of all travelers prefer a hotel of 300 rooms or lesswhile in 2000 only 64% expressed a desire for a hotel of 300 rooms or less.

� Only 22% of Xers and Echo Boomers use a travel agent but 74% booked a hotel online for leisure travel in the last 12 months

Generation X and YGeneration X and Y

• Of this population– 43% are visiting family/ relatives when they travel

– 39% are looking for a “naturalistic” Vacation

– 15% looking for theme parks

– 2% take golf vacations

• More likely than other demographic groups to:– Rent a cabin

– Go hiking

– Go Camping

• Less likely than other demographics to:– Go fishing

– Do general sightseeing

– Take a cruise

– Holiday in a city or where gaming is offered

– Go to an all inclusive resort

Do a REAL Assessment of Your ResortDo a REAL Assessment of Your Resort

Finding potential guests that look just like Finding potential guests that look just like

your current onesyour current ones

• Better known as Data Mining

– Demographic and Psychographics profiles

Your guest profile

Direct Mail List

Market Segment and SourceMarket Segment and Source

Apr-09Room Nts ADR

Room Nts ADR

Room Nts ADR

Room Nts ADR

Room Nts ADR

Room Nts ADR

Room Nts ADR

Room Nts ADR

Corporate

AssociationTourIncentiveSMERFTranscientPackagesAAA

AARP

Expedia Hotels.com Oribtz Travelocity

3rd Party OTC's

800 # Hotel Direct Travel Agent Hotel Web Site

Generate TrialGenerate Trial--Through Specific OffersThrough Specific OffersDate specific, product specific, audience specific

• 60% of Marketing is math

• Display ads in a dead market

• See data mining discussion

• Be Bold The Broadmoor MEETINGS Guarantee

Your Meeting is Exceptional. Or It's Free. Period.

If your BROADMOOR meeting or incentive program doesn't meet your

Expectations in terms of value, service, facilities and quality, we'll waive the master account. We perform. Or it's free. Guaranteed.

We are committed to excellence at The BROADMOOR and have not reduced staff, training, facility upgrades or facility maintenance. If you book a meeting for 2009 or 2010, you can feel confident that we will fulfill our promise to you.

A word about Renovation

• What better time than now to put money

back into the facilities-There is no one around

anyway!

• Talking to the owner’s about spending money

in the down times

– Now that should be fun.

When your outgo exceeds your income;

Your upkeep will be your downfall.

We need to talk about managing your

expenses.

On the Expense Side

• Use your sales skills and talk with your suppliers

• Get Back to Basics

– Food cost potential vs. actual (Banquet business has

covered your sins)

– Labor Standards

• Talk with your employees openly, honestly and

thoughtfully

• When it comes to staff-Lose your C’s and be sure to

keep your A’s

• Green and Safe are not marketing terms

Talking with the TEAMTalking with the TEAM

• In the absence of fact, one can create whatever fantasy one wants

– Normally talking with the team falls down on our to do list

• Make communication a two-way street

• Write a story

• Form a team of ambassadors

• No Holds Barred

• Follow up often

On the Expense Side

• Use your sales skills and talk with your suppliers

• Get Back to Basics

– Food cost potential vs. actual (Banquet business has

covered your sins)

– Labor Standards

• Talk with your employees openly, honestly and

thoughtfully

• When it comes to staff-Lose your C’s and be sure to

keep your A’s

• Green and Safe are not marketing terms

Green and Safe are NOT Marketing ToolsGreen and Safe are NOT Marketing Tools

• Utilities are on average 5.1% of Sales– Create Teams, Have an energy audit done again (and this time do

something)

– Use green to leverage cost savings

• Fringe benefits are on average 7.7% of Sales– Accidents (workers compensation) are a large part of fringe benefits

– Do you really have a safety team?

– Do you report to the departments how they are doing every month?

– Do you investigate accidents and invest in training where most accidents occur?

Most ImportantlyMost Importantly

Do not be afraid to make a mistakeDo not be afraid to make a mistake.

Whoever replaces you can fix it!

Questions?

www.resortconference.com

Scott W. Anderson

President

Kohler Company

Hospitality and Real Estate

Scott.Anderson@kohler.com

Insert sponsor artwork here

Thanks to HSMAI University

Live & archived webinar programsBusiness Development • Revenue Management • Internet Marketing •

Business Forecasting • Customer Trends • Green • Sales • Professional

Development

Professional CertificationsCertified Revenue Management Executive (CRME) • Certified in

Hospitality Sales Competencies (CHSC) • Certified Hospitality Marketing

Executive (CHME) • Certified in Hospitality Business Acumen (CHBA)

Special ProgramsManaging Business Results • Managing Revenue

www.HSMAIUniversity.org

Graduating in June

with BS Business of Administration in Hotel Restaurant Tourism Management

• Jennifer Collins

• Matt Lane

• Michelle Pavlakovich

• Alexa Sansone

Future Graduates

majoring in Hotel Restaurant Tourism Management - available for internships

• Tim Healy

• Kiza Miller

• Becca Samson

• Yoshiko Shimura

Thanks to University of Denver Students

Upcoming Programs

• Emerging Lifestyles and Travel Trends:

Implications for Resort MarketingMay 11, 2009; 2:00-3:15 PM Eastern

Peter Yesawich, President and CEO, YPartnership

• Managing Group Sales Contracts in a World

Gone MadMay 13, 2009; 2:00-3:15 PM Eastern Steve Kinsley, Kinsley and Associates; Steve Rudner, Rudner and Associates

www.resortconference.com

Save the Date

10th Annual Resort Conference

May 2-4, 2010

PGA National Resort & Spa

Image of Courtesy of PGA National