Role of Technological Partnerships in Hotel Operations
In today’s fast-paced world, hoteliers face a myriad of challenges in managing their operations efficiently while ensuring exceptional guest experiences. However, there is a solution at hand – strategic technological partnerships. These collaborations offer innovative solutions that streamline processes, boost efficiency, and ultimately make life easier for hoteliers.
But to truly understand the transformative power of technological collaborations in the hospitality industry, it is important to understand the challenges faced by hoteliers.
Challenges in Hotel Operations
Hoteliers often encounter operational challenges that hinder efficiency and compromise guest satisfaction. These challenges include time-consuming administrative tasks, the need for seamless communication across departments, and managing multiple systems and platforms. Moreover, keeping up with evolving guest expectations and staying competitive in the digital age poses further challenges for hoteliers.
Thankfully, hoteliers can overcome these operational challenges through strategic technological partnerships. Let us now understand how.
Role of Technological Partnerships for Streamlined Hotel Operations
Technological partnerships offer hoteliers the opportunity to overcome operational challenges and streamline their daily processes. By integrating property management systems (PMS) with other hotel systems such as revenue management, guest relationship management, and housekeeping solutions, hoteliers can automate repetitive tasks, streamline communication, and consolidate data. This integration eliminates silos and provides a holistic view of hotel operations, enabling more efficient decision-making and resource allocation.
Moreover, such cloud-based solutions allow seamless access to data and systems from any location.
Embracing the Power of Cloud-Based Solutions
With seamless access to data and systems from any location, hoteliers gain real-time information and the flexibility to manage their properties remotely. This accessibility enhances operational agility and enables hoteliers to respond swiftly to changing market demands.
Collaborating with technology providers brings forth a range of benefits for hoteliers.
Benefits of Collaborative Innovation
Enhanced Guest Satisfaction through Personalized Experiences
One key advantage is improved guest satisfaction through personalized experiences. By leveraging guest data from multiple touchpoints, such as online bookings and guest feedback, hoteliers can tailor services to individual preferences, anticipate guest needs, and deliver personalized recommendations. This level of personalization enhances guest loyalty and overall satisfaction.
Optimized Revenue Management
Optimizing revenue management is crucial for hoteliers seeking sustainable business growth. By integrating revenue management systems with distribution channels, hotels can automate pricing decisions, monitor market trends, and maximize revenue potential.
This collaboration allows for dynamic pricing strategies based on demand and competitor analysis, ensuring optimal revenue generation and increased profitability.
Effective Channel Management for Revenue Maximization
Maximizing revenue through effective channel management is paramount for hoteliers. Embracing channel managers helps overcome distribution challenges, optimize rates and availability, and expand reach across multiple channels. The streamlined distribution process, centralized inventory control, and data-driven insights provided by channel managers empower hoteliers to make informed decisions, enhance revenue generation, and ultimately drive success in the dynamic hospitality industry.
Read More: Revolutionizing Guest Experiences & Revenue Management with AI
Read More: Navigating Hotel Distribution Challenges with Technology & Strategy
Technological partnerships play a pivotal role in simplifying the lives of hoteliers by addressing operational challenges and unlocking a multitude of benefits. By collaborating with innovative technology providers, hoteliers can streamline operations, improve guest satisfaction, and optimize revenue management.
As the hospitality industry continues to evolve, embracing these partnerships becomes increasingly crucial for hoteliers to stay competitive, enhance efficiency, and deliver exceptional experiences to their guests.
About the Author
Jaume Esteban Palette
Manager, Strategic Partnerships
RateGain
How Hotel Pricing is Going to Change in the Age of AI
Imagine a world where your hotel knows what a guest wants even before they do. A world where your pricing strategy is not just about numbers, but about understanding choices, dreams, and the urge to travel. A world where your revenue management and marketing teams work hand in hand to craft personalized offers that guests can’t resist. Sounds utopian right? Well, with Artificial Intelligence (AI), this dream is becoming a reality.
Over the last few months, we have seen ChatGPT, Bard and other travel-technology companies use Large Language models to fundamentally alter the way travelers looked for inspiration, searched for options and how they planned travel. The two-decade old process of searching for options in silos finally appears to be broken – and a near human like conversational experience is now being created where travelers can share an abstract vision of the type of travel they want to experience and the LLM powered bots will share the closest matches to their vision.
Personalizing Pricing with AI
AI is enabling a new level of personalization in the hospitality industry. By analyzing vast amounts of data quickly, AI can understand individual preferences, needs, and the urge to travel, allowing hotels to tailor their offerings to each guest. This level of personalization enhances the guests’ experience, leading to increased customer satisfaction and loyalty.
For example, AI when coupled with a language model, can not only understand past booking behaviors but also preferences for future stays. This could range from their preferred room type and amenities to their dietary preferences and activities of interest. By personalizing the guest experience in this manner, hotels can not only enhance guest satisfaction but also maximize their revenue by upselling personalized services and offerings.
While hoteliers might see this as an additional layer of complexity, the right way to see it is an opportunity to differentiate their offerings not only within the hotel, but even before the guest has made the decision to book with them. The level of customization also allows them to charge a premium depending on the type of property the revenue management team is handling.
Making TRevPAR a success with AI
AI as most of you might understand is the layer that sits on top of all the data that is collected. This collected data allows AI to stay informed, build context and suggest solutions or alternatives that can work in the real world. An application that uses case in hospitality is providing recommendations to end travelers and helping them have a better experience, as well as connecting with PMS systems to understand and tackle guest queries.
For instance, an AI assistant can understand a user’s query, provide relevant information, and even suggest personalized recommendations. This not only enhances the user experience but also reduces the workload on customer service teams, allowing them to focus on more complex tasks.
With AI being able to provide prompt response and service, this allows the opportunity to upsell and create room for generating higher revenues.
However, based on consumption patterns – in the future when guests return to book with a certain chain, the chain can nudge the user to add on the ancillaries he ordered at a discount – ensuring that the extra revenue is guaranteed as well as the guest feels they are able to get a good price for the add on.
In addition to this, using AI hotels can drive more traffic to their apps or websites as that is where you can serve the offer, and not on the OTA.
The Blurring Lines between Marketing and Revenue Teams
With the rise of hyper-personalization, the lines between revenue management and marketing are blurring. Revenue managers are no longer just setting prices based on supply and demand. They are now working closely with marketing teams to understand what the right offer is for each individual customer.
For example, by analyzing a customer’s booking history and online behavior, revenue managers and marketing teams can determine the types of offers and promotions that the customer is most likely to respond to. This could range from discounted rates and package deals to personalized add-ons and services.
In this context, the role of revenue managers is evolving from simply setting prices to crafting personalized offers that maximize both customer satisfaction and revenue.
So, what can you do?
As AI continues to evolve, so will the role of revenue managers as the trip planning and booking process undergoes a massive change.
Revenue managers will need to understand and leverage AI to craft personalized pricing strategies, work closely with marketing teams to understand customer behavior, and make data-driven decisions to maximize revenue.
Remember, the advent of AI is not a threat to revenue managers, but an opportunity. It’s an opportunity to enhance their strategies, provide more personalized experiences to guests, and ultimately, drive more revenue. As we move into the future, the role of revenue managers will be more important than ever, and those who can adapt and leverage AI will be at the forefront of the industry.
About the Author
Mudasser Tariq
Senior Vice President – Enterprise Business
RateGain
Taylor Swift parties, events before Eras Tour in Denver on July 14, 15
Whether or not you’re going to Taylor Swift’s concerts at Empower Field at Mile High next week, you’re in good company.
Fans of the singer-songwriter and her Eras Tour, which plays Denver on Friday, July 14, and Saturday, July 15, scrambled to snag tickets the moment they went on sale earlier this year, ensuring both instant sell-outs and disappointment.
But anyone can attend these parallel yet separate Swift-themed events, in which boutique hotels, promoters, bars and upscale shopping complexes cater to people coming to (and from) the shows in downtown Denver. Getting a piece of that action means meeting fans where they are. Literally.
Here’s a quick roundup of Swift-related events that are open to the public, both free and paid. Watch for The Denver Post’s photo slideshow and review of the tour’s opening night in Denver, to be posted on July 15 on denverpost.com/things-to-do/music, and check out a review and photos of her 2018 Reputation Tour show at Empower Field at bit.ly/44dZdAz.
Taylor Swift silent disco
The McGregor Square complex across from Coors Field in Lower Downtown is diving in early with a silent disco and related events on Saturday, July 8. Each $30 admission includes a silent-disco headset to hear a pair of DJs spinning Swift hits “from every era to dance and sing along to,” as well as beer or seltzer included and access to a friendship bracelet-making station, “the Eras Tour must-have accessory.”
There are, of course, Swift-inspired cocktails such as Champagne Problems and Lavender Haze, and The OG and Rally bars will also be serving Swiftie cocktails. Tickets are $30 per person, or $10 for people who book a room on the same night at the Rally Hotel on-site. eventbrite.com or finallyhotel.com
Early Taylor Swift pre-parties
Other events are popping up a week early to take advantage of the run-up to the show: the Queer Taylor Swift pre-party at Denver’s Goldspot Brewing Company welcomes Gaylors (Swifties who theorize that she’s secretly gay) and everyone else with a costume contest , friendship bracelets and flash tattoos, from 3 to 8 pm on Saturday, July 8. The event is free but donations will be collected to benefit nonprofits Khesed Wellness and The Delores Project. eventbrite.com
On July 13, the night before the first concert, Mile High Spirits is also holding a pre-party featuring “all Taylor Swift, all night long” music ($10; eventbrite.com).
Swifties at the Station
The 1-7 pm celebration on July 14 and 15 at Denver’s Union Station will feature DJ Chris C playing fan-favorite Taylor Swift tunes, a “face rhinestone artist” and a pop-up by LINK x LOU “to help you level up your friendship-bracelet game,” organizers wrote. You can also pose for photos in a booth and enter a Best Dressed raffle for prizes that include a one-night stay at The Crawford with a $100 Denver Union Station gift card.
“Terminal Bar will also be pouring special Taylor Swift cocktails, including the Cruel Summer, a Taylor Spritz, a Blank Space and a Lavender Haze, made with Tito’s Vodka, black tea, lavender, Butterfly Pea Syrup, lemon and soda water,” according to the press release. Anyone who buys food or drink from Terminal Bar on July 15 can also take a free TukTuk ride directly to Empower Field from 3:30 to 7:30 pm Events are free but RSVPs are encouraged via eventbrite.com. More at denverunionstation.com/events/swifties-at-the-station
“You Belong With Me” at Thompson Denver
The year-old Thompson Denver hotel is also going the lux route on July 14 and 15 with its Champagne Problems brunch, featuring specials by the bottle or glass, the Lavender Haze cocktail throughout the hotel, a “special merch stand for the ultimate friendship bracelets and temporary tattoos” (think 13 and 22, organizers said), and a “Cruel Summer” party in Reynard Social with Eras songs by Cyberkid. Note: Overnight hotel rates for these dates start at about $800. hyatt.com/thompson-hotels/denth-thompson-denver
Taylor Swift Glam Makeup Experience
LoDo’s Maven Hotel and Poka Lola Social Club joined forces at The Dairy Block for a Glam Makeup Experience on July 14 and 15, with Denver artist Makeup by Peaches “helping fans to rock Taylor’s signature red lip or add a pop of glitter and color to your already fabulous outfit,” organizers wrote. Timed slots are available 2-6 pm both days for $10 per person. Poka Lola will have the Champagne Problems and Lavender Haze cocktails on both days. Registration is required at eventbrite.com. More at themavenhotel.com
Swift City
This elaborate tailgate party will be set up across from Empower Field along Federal Boulevard from 3 to 6 pm on July 14 with food and drinks, activity booths, DJs, selfie backdrops and more ($25). If you can’t go to the show, they’re also hosting a listening party during it ($25) and a 21-and-up post-concert dance party ($25). The Can’t Stop Won’t Stop bundle includes all of the events ($60). eventbrite.com
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Sustainable Hotels Shaping Responsible Hospitality
Amidst a surge in environmental consciousness and corporate social responsibility, the hotel industry is embarking on a captivating journey toward sustainability. In 2017, the United Nations declared it the International Year of Sustainable Tourism for Development. As a result, hotels around the world are implementing responsible practices that are good for the environment, and also make money.
These exceptional, sustainable hotels excel in energy efficiency, waste management, water conservation, and sourcing local materials. They skillfully combine these elements to create an enchanting and environmentally conscious experience for guests.
What sets the Green Hotels apart?
These hotels don’t just offer a place to stay; they invite guests to join their important mission and make a difference. The journey towards sustainable hotels envisions a future where making a profit aligns perfectly with the crucial responsibility of protecting our planet.
The prevalence of sustainable hotels is set to soar. Behold the remarkable journey where sustainability ascends. Not only preserving our planet but also igniting revenue growth and propelling guest experiences to unprecedented heights.
Sustainable Hotels: Redefining Hospitality with a Green Touch
As the world awakens to the urgent need for environmental care, sustainable hotels are seizing the moment. With an astonishing 50% of travelers expressing worry about climate change, as reported by Euromonitor International, a profound shift in consumer consciousness is unfolding.
This is an exciting moment for hotels to meet the growing demand for eco-friendly travel experiences. A new era of hospitality is emerging, where sustainability and luxury come together seamlessly, creating a lasting impact on the planet and satisfying the discerning traveler.
Profitability and Responsibility: Achieving the Delicate Equilibrium
Navigating the fine line between profitability and responsibility poses an alarming challenge for sustainable hotels. Nevertheless, industry experts assert that these two facets can coexist harmoniously.
Renowned sustainability consultant Dr. Jane Greenfield emphasizes that sustainable hotels have the power to create unparalleled guest experiences while maintaining profitability.
By aligning their endeavors with the United Nations’ sustainability goals, hotels can focus on economic growth, employment opportunities, cultural diversity, and fostering mutual understanding.
Industry Insights: Thriving on Sustainability’s Cutting Edge
In the fiercely competitive hotel sector, sustainable practices hold the key to gaining a distinct advantage.
According to industry analyst John Smith, hotels that prioritize sustainability not only cater to the demands of environmentally conscious travelers but also carve a niche in the crowded market. Smith emphasizes integrating sustainability into a hotel’s brand identity and effectively communicating these efforts to guests. By doing so, hotels can tap into an expanding customer base that shares shared values and responsible choices.
Unlocking the Financial Benefits of Sustainability
Contrary to the belief that sustainable practices hinder profitability, hotels can actually reap substantial financial rewards. While initial investments may be required, the long-term gains far outweigh the costs. Initiatives such as energy and water conservation, waste reduction, and efficient resource management can yield significant cost savings over time.
Furthermore, sustainable hotels can attract environmentally conscious guests willing to pay a premium for eco-friendly accommodations, providing an additional boost to profitability.
Case Studies: Green Hotels Leading the Sustainable Revolution
A wave of global hotel brands has embraced sustainability and is now reaping the benefits. Take Marriott, for example, which has set ambitious targets to reduce water and energy usage, resulting in remarkable achievements.
Through simple yet effective strategies such as water pressure reduction, guest item reuse promotion, and leak-detecting water systems, hotels of all sizes can immediately enhance their environmental impact and contribute to a sustainable future.
Popular Sustainable Hotels & Their Sustainability Programs
- Marina Bay Sands: Energy Management System
- Marriott International: LEED Dynamic Plaque
- Alila Hotels & Resorts: EcoSmart Sustainability Metrics Tracking
- AccorHotels: Green Key Program
- Henn-na Hotel: AI Robots to Control Energy Usage
- Four Seasons Hotel: AI-Powered Waste Management
- The 1 Hotel Brooklyn Bridge: Smart Energy Management
- Citizen Hotel: Smart Irrigation System
- Hilton Hotels: LightStay Program
- Radisson Blu Hotel: AI-Powered Energy Management
Read More: Technology as a Driver for Sustainable Travel
The Path Forward for Sustainable Hotels: Collaboration and Recognition as Catalysts
Sustainable practices require constant evaluation and refinement to ensure long-term success. Engaging the hotel staff is paramount, as they serve as passionate ambassadors, educating guests and making a difference through small actions.
Guest surveys are pivotal in understanding perceptions and expectations, enabling hotels to tailor sustainability initiatives accordingly. Furthermore, registering with eco-travel platforms and participating in industry awards not only boosts bookings but also offers opportunities to showcase sustainable actions, inspiring others to follow suit.
In hospitality, sustainable hotels embody a lucrative and conscientious path. By skillfully navigating the terrain of profitability and responsibility, hotels can draw in environmentally conscious travelers, elevate guest experiences, and play a pivotal role in fostering a healthier planet. This transformative journey requires collaboration, ongoing refinement, and adept communication.
As the industry progresses, more hotels need to recognize the symbiotic relationship between profitability and sustainability, forging a harmonious scenario where everyone emerges as a winner.
The Potential of Blockchain Technology in Boosting African Tourism
Written by: Obiora Ndili
Africa is home to some of the world’s most beautiful natural wonders and diverse cultural experiences. It has become a popular destination for tourists from around the globe. But the tourism industry in Africa is facing various challenges such as lack of infrastructure, weak regulation, and low levels of investment. However, blockchain technology has the potential to revolutionize the tourism industry in Africa.
Blockchain technology is a decentralized ledger that can record transactions in a secure, transparent and immutable manner. It has already shown great potential in various industries such as finance, healthcare and supply chain management. In the tourism industry, blockchain can address various issues such as payment processing, identity verification, and supply chain management.
One of the main challenges facing tourism in Africa is payment processing. Traditional payment methods such as credit cards are not widely accepted in Africa, and the use of cash can be risky and cumbersome. Blockchain technology can provide a secure and efficient payment system that eliminates intermediaries and reduces transaction costs. Blockchain-based payment systems such as Bitcoin and Ethereum are already gaining popularity in Africa, and more tourism businesses are beginning to accept these cryptocurrencies as a means of payment.
Identity verification is another challenge facing the tourism industry in Africa. Tourists may be required to provide multiple documents to verify their identity, which can be time-consuming and inconvenient. Blockchain technology can provide a secure and decentralized platform for identity verification. Tourists can store their identity information on a blockchain network, and tourism businesses can access this information to verify the identity of their customers. This can significantly reduce the time and cost of identity verification processes.
The supply chain in the tourism industry is also complex and can be difficult to manage. Blockchain technology can provide a transparent and immutable ledger of the entire supply chain, from the origin of the goods and services to the final delivery to the customers. This can enhance the quality and authenticity of products and services in tourism while improving customer trust and satisfaction.
Another advantage of using blockchain technology in the tourism industry is that it can promote eco-tourism and sustainability. Tourists are becoming more aware of the impact of their travels on the environment and are looking for ways to reduce their carbon footprint. Blockchain can be used to create smart contracts that incentivize sustainable practices such as eco-friendly transportation and waste reduction. These contracts can reward tourism businesses that adopt sustainable practices and provide tourists with more eco-friendly options.
Furthermore, Africa has the advantage of being a blank slate when it comes to technology adoption. Unlike developed countries that must adapt and integrate new technologies with existing infrastructure and systems, Africa can leapfrog directly to the latest and most efficient technologies. Blockchain technology can be implemented in African tourism businesses from the ground up, without the need to navigate complex legacy systems.
However, there are also challenges and risks associated with the implementation of blockchain technology in the tourism industry. The first challenge is the lack of technical expertise and infrastructure. African countries need to invest in developing the technical skills and infrastructure required to adopt and integrate blockchain technology into their tourism businesses.
Another challenge is the lack of regulatory frameworks and standards. Blockchain is a new and rapidly evolving technology, and there are no clear regulations or standards for its use in the tourism industry. This can create uncertainty and increase the risk of fraud and security breaches.
In conclusion, blockchain technology has the potential to revolutionize the tourism industry in Africa. It can provide a secure and efficient payment system, streamline identity verification processes, enhance the supply chain management, promote eco-tourism and sustainability, and help African countries leapfrog to the latest and most efficient technologies. However, the implementation of blockchain technology in the tourism industry requires investment in technical skills and infrastructure, and the development of regulatory frameworks and standards. With the right support and collaboration, blockchain technology can transform the tourism industry.
This blog post was awarded Second Place (tied) in the Spring 2023 HFTP/MS Global Hospitality Business Graduate Student Blog Competition presented by the HFTP Foundation. The blog posts that received the top scores will be published on HFTP Connect through July 2023. Learn more at HFTP News.
Obiora Ndili is a graduate student of the Master of Science in Global Hospitality Business, a partnership between the Conrad N. Hilton College of Global Hospitality Leadership at the University of Houston, the School of Hotel and Tourism Management at Hong Kong Polytechnic University and EHL.
The Power of Allyship: Building Bridges of Support and Inclusion
Pride Month is not just a time for the LGBTQ+ community to celebrate their identities, but also an opportunity for allies to educate themselves and advocate for equality. Allyship is a crucial pillar of support, and it plays a significant role in creating a more inclusive society for all. Let us delve into the importance of allyship, emphasizing the transformative power of education in fostering understanding, empathy, and acceptance.
Expanding Perspectives: The Role of Education
Education is the cornerstone of allyship. By seeking knowledge about the LGBTQ+ community, its history, struggles, and accomplishments, allies can develop a deeper understanding of the challenges faced by individuals with diverse sexual orientations and gender identities. Education serves as a catalyst for breaking down stereotypes, dismantling prejudices, and fostering a culture of acceptance.
Challenging Assumptions and Bias
Allyship involves critically examining our own assumptions and biases. It requires recognizing and challenging the societal norms that perpetuate discrimination and marginalization. Through education, allies can confront their own biases and prejudices, allowing for personal growth and transformation. This self-reflection is essential in creating a more empathetic and inclusive environment.
Creating Safe Spaces for Learning
As allies, we have a responsibility to create safe spaces for learning and dialogue. By fostering an environment where questions can be asked, experiences can be shared, and concerns can be addressed, allies can facilitate meaningful conversations. These spaces allow for the exploration of diverse perspectives, leading to increased understanding and empathy.
Using Privilege to Amplify Voices
Allies have the privilege of being heard and respected in various spheres of influence. This privilege can be utilized to amplify the voices of the LGBTQ+ community. By actively sharing stories, experiences, and achievements, allies can help combat erasure and promote greater visibility. This act of amplification contributes to a more accurate and nuanced understanding of the LGBTQ+ community.
Advocacy for Equality
Education empowers allies to become advocates for equality. Armed with knowledge, allies can challenge discriminatory practices, policies, and beliefs. They can engage in meaningful conversations with others, challenging misconceptions and promoting empathy. Allies can use their voices to advocate for equal rights and protections, both on an individual level and within broader societal structures.
Celebrating Diversity
Allyship involves not only acknowledging and accepting differences but celebrating them as well. Education allows allies to appreciate the diversity within the LGBTQ+ community, recognizing the intersections of race, ethnicity, religion, abilities, and more. By embracing this diversity, allies contribute to the creation of a more vibrant and inclusive society.
Pride Month serves as a reminder of the ongoing struggles and achievements of the LGBTQ+ community. As allies, it is our responsibility to educate ourselves, challenge biases, and actively advocate for equality. Through education, we can foster understanding, empathy and acceptance.
Let us use this Pride Month as an opportunity to reflect, learn, and commit ourselves to becoming better allies. Together, we can create a society where all individuals are valued, respected and celebrated for who they are.
Lessons in Leadership from Florida’s Largest Independent Hotelier
“Hotels are a service industry, and the key is to have happy associates.”
There are many reasons Harris Rosen, president and COO of Rosen Hotels & Resorts and Florida’s largest independent hotelier, is a masterclass in hospitality leadership: his willingness to take enormous risks, his wise approach to scaling up, and most importantly, his steadfast, decades -long devotion to giving back – both to his employees and his community.
When HITEC was in Orlando, Florida last year, Rosen led a special, bonus session as part of the inaugural HFTP Leadership Excellence Series. In this gripping session, Rosen regaled attendees with anecdotes, lessons and experiences drawn directly from his 40-plus years as a successful and thriving hotelier – and at the end, left attendees with a singular, resounding phrase to guide them in their future careers.
First, some important facts about Rosen, founder, president and CEO of Rosen Hotels and Resorts:
- Rosen Hotels & Resorts boasts seven hotels, 6,338 guest rooms and suites, and over one million square feet of convention space.
- In addition to hotel holdings, Rosen operates a technology company called Millennium Technology Group, an insurance company called RosenSure, and owns a medical center exclusively for associates called The Rosen Medical Center: A Place for Healing and Wellness.
- Apart from being a successful businessman, Rosen is also a dedicated philanthropist, with a foundation that serves children in underserved communities, programs that provide free preschool to children ages 3-4 and college/vocational scholarships for high school graduates, and more.
Keep reading for Rosen’s take on how supporting and rewarding your employees can pay off massively in more ways than one. Then, watch Rosen’s session in its entirety here to learn more about how Rosen Hotels and Resorts got its start, Rosen’s secret to financial success when scaling up properties, the philanthropic programs that Rosen created for youth and underserved communities, and more.
The following was transcribed from the original session recording and may have been condensed/edited for clarity. Please refer to the session recording for the original audio.
Rosen: I have worked diligently to do whatever we can to keep our associates happy.
We have our own medical center. If you work for me, you visit the medical center. If you’re in the hospital, the most you pay is $750 twice a year – after that, you don’t pay anything. One of our associates had a little baby born prematurely. She was in the hospital with her baby for a long time, and the bill was $1,041,000. I know that because I paid for it. She paid $750. If you have a prescription and you go to Wal-Mart, it’s free, 90 percent of the time. If you’ve been with me for three years and you have children in college, I’ll pay their tuition.
About 30 years ago, wanting desperately to lower our healthcare costs, I worked diligently to make that happen. And it worked. I called the insurance company, and they said, “we’ll have your numbers pretty soon.” I got my bill, and my insurance rates went up by 25%. I called. That was a mistake, because we worked diligently, and we lowered our healthcare costs by about 30 percent. Yet, there’s an increase in my healthcare costs. I had to check. “It’s because of the group you are in.” I said, “No, no, no. I’m an independent little hotel guy. I’m not part of a group.”
[The insurance representative] said, “No, we put you in a group.” I said, “I don’t want to be in a group.”
“You don’t have any choice.”
“I guess my choice is not to do it.”
One of the dumbest things I’ve ever done in my life. I had no insurance company. I had no medical center. I have no affiliation with any hospital, any doctor. What have I just done? I said, “Take a deep breath. Number one: let’s get a clinic.”
The accounting office needed more space. And we created a beautiful little clinic there, hiring a nurse practitioner, a physician and an admin. And we were in business. What about insurance? Well, let’s start our own insurance company. We did. One of the finest insurance companies here in Orlando. We had insurance. We had our medical center. What about hospitals? Let’s talk to them.
We’re not afraid to talk. We spoke to the hospitals and made a deal with them. What about all the other physicians. We’ll talk to them. And before long, we had a program called RosenCare®. We controlled our own destiny.
What impact would that have on our healthcare costs? At the end of the first year, we’re on the cover of Florida Trends magazines. why? We’ve cut our healthcare costs by 50 percent – from about $1,400 per covered life to $700 since we started our program. If you compare our cost per covered life with the national average, we have saved our little company over $500 million.
Yes – we’ve had crazy ideas. Have they all worked? No. But we don’t give up.
(The final question of the session) From a leadership excellence perspective, if you were to leave this room with one professional thought or idea to take home, what would that be? What would you say is a phrase to live by?
Don’t ever give up.
HFTP Leadership Excellence Series Returns to HITEC Toronto 2023
Don’t miss the opportunity to learn from an established industry leader at the next “HFTP Bonus Session at HITEC,” taking place Thursday, June 29 at HITEC Toronto 2023. While this session is officially part of the HFTP 2023 Leadership Excellence Series program, it is open for all HITEC attendees to observe. Visit the HITEC website in the coming months to learn more and register for HITEC if you have not done so already. See you in June!
Three Questions All Hospitality Accountants Should Ask Themselves
Written by: Shane Middleton
“There has to be a better way!” We hear it all the time – even in the accounting department. The truth is that we are always hardwired to want more and better. We are always looking for that miraculous, game-changing “easy button,” not realizing that often we don’t get the most out of what we have right in front of us. Why do we do this? Two truths tend to arise in this scenario. Either we do not like to admit we are doing things wrong, or we realize that we can change, but the work of re-programming and evolving seems too cumbersome. The truth is that until we make the most of what we have, nothing new in the marketplace will give us the results we want. That goes for our teams and our technology. The good news is you were right in the beginning. There is a better way, and it has been here the whole time. So, the real question is: how do we unleash it?
Step 1: Are We Focused?
According to a recent survey, 82 percent of accountants say their job is more demanding than ever, while 87 percent agree that clients expect more flexibility and better service levels from accountants without increasing rates. Accounting is a busy profession and in hospitality, it is easy to feel like we are doing everything for everyone. However, there are a couple of truths that we are all guilty of. We take problems from other departments as our own. Yes, I am talking about all that time spent on accounts receivable reconciliations and chargebacks, among other things. We also create work that does not produce material benefits. We make sure there is a copy of each invoice in the purchasing system, the accounting system and the balance sheet reconciliation workbook. What material benefits are we getting by ensuring the same document is in three separate places?
We need to ensure we are focused on tasks that create value and technology tools that promote practical efficiency to accomplish what matters.
Step 2: Are We Accountable?
Being accountable is more than making sure those month-end reports get out on the right day. Let’s talk more about that truth where we absorb other departments’ problems as our own. Property management must be held accountable for the monetary consequences of hotel operations. Accountants need to be held accountable for the accuracy of the reports that are issued and what those reports tell us about the decisions we need to make. But the bigger problem is not others holding us accountable for things we should not be responsible for. It is us holding ourselves accountable to let others own their respective responsibilities, so we can bring value to the table in accordance with the value proposition that a well-run accounting team affords a company – timely and accurate reporting with an analysis of our financial wins and opportunities. Accountants should be free from entering invoices, tracking down chargebacks and reconciling sales tax. We, as an industry, are diminishing the value that we could get from our accountants by asking them and allowing them to focus on such tasks.
We need to make sure we are accountable to ourselves and the maximum impact we can have in our organizations.
Step 3: Are We Thought-Forward?
We all hate to use this term, but standard operating procedures, or SOPs, are so important. Writing an SOP does more than just set a standard of rules; it forces us to think about why we are doing a task, how a task adds value to our organization today, and how it sets us up for success in the days ahead. Thinking beyond today is so critical. If we only fix today’s problems, we will never stop putting out fires because we are not putting energy towards anticipating the next one. Sometimes a task is just a task, but a task is also often an opportunity to elevate your team members. Your processes are there to grow your team’s skillsets. Likewise, the technology you implement should drive success in your organization in more ways than just making things faster. It should expand the perspective of your team, grow your level of efficiency, and cultivate a space to anticipate future problems that can also add to the ROI of that solution.
We need to be thinking procedurally, culturally and technologically about how the processes we follow, the tone we set, and the tools we use drive us forward effectively and efficiently – not only for today but for the future.
By asking these three questions of ourselves and our teams, we unlock vast potential just waiting to be tapped into. So, you are right; there is a better way!
As the strategic partnership manager at M3, Shane Middleton works closely with internal teams, as well as industry service partners, to develop and maintain the best collaborative relationships serving today’s hoteliers. He also works with M3 product and services teams to add a practical perspective of a hotel operator in the processes and design of service offerings and product features.