|
HOTELS vs. SERVICE QUALITY
Examples for Quality seekers
Trace Tips
-
Marriott Hotels and Resorts
-
Embassy Suites
-
Four Seasons Hotels
-
Hyatt Hotels & Resorts
-
Mississippi Management
INTRODUCTION
Hotels: The No Adventurer's Adventure
Imagine
Pa, Ma, Laura, Mary and the rest of the Ingalls' in the family wagon (a Conestoga "Woody," no doubt) and heading to
sunny California for the annual family vacation. All the great
mass media families take vacations. The Bradys seek adventures
in Hawaii, the Griswalds head for "Wally World," even the
Munsters made the trek to Death Valley.
Yet something seems amiss with the idea of the Ingalls heading
down the road-because it never would have happened. A big trip
for them would have been a ride over to Mankato (that's in
Minnesota) for supplies. A century ago, only the very rich and
the very adventurous traveled for pleasure. The family vacation
didn't exist. Neither did the hospitality industry as we now
know it.
Lang's Ranch in the Badlands of Dakota Territory is a good
example of the traveler's lodge of yesteryear. Edmund Morris, in
his biography of Theodore Roosevelt, describes a stay at Lang's
during an 1883 hunting trip by the then New York assemblyman and
his guide, Joe Ferris: "A cold rain began to fall, and they woke
to find themselves lying in four inches of water. Shivering
between sodden blankets, Ferris heard Roosevelt muttering
something. To Joe's complete disbelief, the dude was saying, "By
Godfrey, but this is fun!' "
Today that odd sentiment tends to be reserved for summer camps
and those trendy out-in-the-woods management leadership
retreats. When we travel these days, we expect lodging that is
as comfortable as the family castle we left-at minimum a room
that is quiet and secure, a bed that is comfortable, a bath and
toilet that are clean ... and a television set, and room service,
and a place to jog, and a good restaurant, and a lounge, and a
morning paper, and if it's not too much trouble, milk and
cookies at bed time.
Where did the need for a hotel on every other corner begin? With
the automobile, almost overnight, it changed the style of travel
lodging. When it became not only possible but routine to convey
oneself hundreds of miles in a single day, our "next town"
mentality vanished. A telephone became a mighty lever for
securing reservations and the car became the freedom machine.
The expression "no room at the inn" was relegated to
Joseph-and-Mary jokes. Successful hoteliers of the time accepted
the new challenges along with their new opportunities. The
hospitality industry underwent a revolution thanks largely to
three men, Alexander Graham Bell, Henry Ford, and Arthur
Heineman.
Arthur S. Heineman? The same. There should be a monument
erected to the man who, on December 12, 1925, opened the
"Milestone Motel" in San Luis Obispo, California. It was the
first "motel," and Heineman claimed a copyright on the word. He
foresaw the connection between motoring and lodging. More
importantly, Heineman knew the traditional hotel, designed as it
was to serve an upscale, entourage-trailing customer, would not
satisfy the new American traveler of modest means. So, he put
his motel beside the highway and provided garages for guests. It
was a revolutionary service concept separated from Roosevelt's
hunting trip by half a continent and a short forty-two years.
Heineman could not have foreseen the changes that another world
war, a business boom, and development of a national interstate
highway system would bring. As super highways connected city
after city, rural properties adjacent to the concrete ribbons
began to sprout suburban business centers. Once confined to the
urban core, these businesses enabled whole new lodging chains to
prosper. Holiday Inn, Ramada, Marriott, and Hilton became the
new hospitality giants.
Post-World War II America became a nation on wheels. Deprived of
gasoline and other strategic resources for several years, we
literally went on a driving binge when they became available
again. We learned a lot of things during the war, including how
to build better machines and roads. The economy was fired up.
There was money to spend again, and things to spend it on.
Business prospered and expanded. Leisure time became a reality
for many. Television began to teach us how to use that
leisure-what we could do with time, and where we could go to do
it.
If the 1950s and 1960s were years in which the family vacation
became institutionalized, they also were the period when
hospitality became a true service business. Mom-and-pop motels
began to make way for hotel groups, and they in turn began to
lose market share to national-scale hotel and motel chains. With
so many people motoring-and, soon, flying-lodging providers
found it advantageous to define serious, consistent service
standards and competitively necessary to engage in
amenity-upmanship.
It began with a bar of bath soap. Then there were stationery
packets for teasing friends back home with picture postcards
that proved how much fun we were having at this particular
roadside rest. Complimentary shampoo and shower caps followed,
and shoeshine paraphernalia, and sewing kits. They all
contributed in some way to the positive image we had of our
travel lodging. Importantly, they made us feel we were getting
our money's worth. It was our "perceived value" of the hotel
that made us forgives the expense.
Chains provided travelers the assurance that their amenities
would be consistent form city to city. Business and pleasure
travelers knew that the pool, sauna, restaurant, tennis court,
bar, and game room they enjoyed in Miami would be waiting for
them in Seattle. And they knew that their reservation could be
made for them and that the room charges would be relatively
consistent.
Just how large a business has hospitality become? U.S.
Industrial Outlook estimated 1986 hotel and motel revenues at
$43.9 billion, and industry experts predicted 3 million rooms by
1990, an 11 percent increase. Yet despite modest gains in the
numbers of travelers, occupancy rates are flagging due to the
hotel construction boom of the past decade. Everyone wanted to
get into the hospitality act, at least while tax and investment
laws favored the industry. Now cost-containment and controlling
the effects of over bedding is as relevant in the hotel market
as it is in hospitals.
A predictable correction is in evidence. As the saying goes, the
legislature gives and the legislature takes away. The tax
climate is not propelling investors into the hotel and motel
industry in droves any more. For their part, property managers
are looking long and hard at the nature of their business in an
attempt to remain competitive. What they are learning may be at
least as important to the industry as were the telephone and the
auto.
Take the amenity wars, for example: The basic bar of soap that
early motels graciously offered their guests as a freebie has
snowballed into a contest of largess by chains hoping guest
loyalty can be bough. The simple, clean, hospitable
accommodations of a couple of decades past are now surrounded by
lavish physical features designed to entice and entertain.
Have those tactics worked? It seems not. Forty percent of
America's hotel and motel guests in 1986, according to U.S.
Industrial Outlook, were business travelers. Pleasure visitors
and conference attendees each accounted for 25 percent, 5.5
percent were on government business, and 4.5 percent were on
other personal business.
Because they are the largest group, an assessment of business
travelers' attitudes is revealing. Late in 1986, Hotel
management reported the results of a study that indicated that
four of every ten U.S. business travelers do not stay in the
same hotel on successive tripe, and they often leave the choice
of where to stay up to their travel agent. So much for the power
of consumer advertising-and, it should be added, so much for the
importance of amenities.
Industry observer Laventhol & Horwath has found that travelers
like the idea of having exercise rooms, tennis courts, swimming
pools, steam baths, barbers, beauty salons, game rooms,
audiovisual equipment, built-in hair dryers, secretarial
services, and check-cashing privileges, but they don't
necessarily use them. Sometimes they don't even notice
them-Advertising Age's 1985 hotel-motel poll found that guests
of the Hyatt Hotels never mentioned the chain's notable physical
features. They gave Hyatt top marks instead for the quality and
consistency of its service.
As the hospitality industry matures, and as economic pressures
force out the less competitive businesses, more attention is now
being paid to what guests actually want. Those who can
accurately gauge guest preferences stand to rap handsome profits
in the multi-billion-dollar industry. Guess what research into
customer wants and expectations is finding?
According to one resort developer, luxury is the single most
important element sought by guests. But luxury, the Hemmeter
Corporation found out, is not pink champagne for breakfast or
built-in anything. A survey conducted for it by Strategic
Information Research Corporation in 1987 showed that luxury is
simply service.
Among those queried were travel agents and editors, civic travel
bureau representatives, and large company meeting planners. By
an over-whelming 73 percent, the respondents said service is the
single most important consideration in rating a hotel. It is how
responsive the staff is to a guest's needs that demonstrates
caring and makes one feel welcome. In the end, service is the
one factor that, more than anything else, makes a guest decide
to return for another visit.
The way a hotel's staff anticipates guests' needs and provides
for them in a personal style is the clincher in the
relationship. A good friend who travels to New York on business
frequently swears by the staff of the New York Helmsely and
wouldn't think of staying elsewhere. The reason? One night she
had an insulin reaction. The bell captain broke into the bar for
a Coke to give her the needed sugar supplement and then sat with
her until the house doctor arrived.
Less dramatic acts can create loyalty as well. Our colleague
Chip Bell loves the Ritz-Carlton Atlanta. His affection is due,
at least in part, to one memorable occasion on which the doorman
was willing to conspire with him to greet Chip's wife, Nancy,
with her favorite drink on silver try. "Dr. Bell," he told her
soothingly when she pulled up at the front door, "I believe
you've been looking forward to this. Just leave your keys in the
ignition, and let us take care of everything for you. Please
have a wonderful weekend."
Even the well-traveled and famous have favorites. We listened
recently as CBS Sunday Morning hosts Charles Kuralt described
Richmond's Jefferson-Sheraton as "the grandest hotel in America,
a combination of Ionic, Corinthian, Rococo, Spanish, Twenties,
Sixties, and revival architecture that works."
There is a lot of subjectiveness in Kuralt's rating system, but
we understand why a hotel can move him like that. For our part,
we have a weakness for the Royal Hawaiian in Honolulu,
Marriott's Rancho Las Palmas in Palm Springs, and the Peabody
hotels in Memphis and Orlando-the last having as much to do with
the enthusiasm of the staff as with they ducks swimming in the
lobby fountain. At the same time, and for twenty-eight dollars
night, we've found outstanding service at the Wynfield Inn in
Colorado Springs.
The personal service lavished upon guests by hotels that
recognize its importance can take many forms. Many rely upon a
concierge to make guest fell at home and well provided for. It
tickets to a show or ball games are needed, a concierge can find
a way to get them, even if the event is sold out. Easy
preregistration is something guests appreciate, and a quick,
computerized check-out is a service the love. In the five hotels
of the Fairmont family (San Francisco, San Jose, Chicago,
Dallas, and New Orleans) we've found staffs whose savvy and
sophistication are on a par with the best we've seen in Europe
and the Orient.
Some hotels go to great lengths to instill the desire to provide
service among their employees. Form maids on up, all twenty-five
hundred employees in the seven hotels of Boston-based Sonesta
International Hotels have been playing a board game that teaches
them how to handle customer service needs. Other companies have
their own view service that it is providing a thriving business
for companies that send in "mystery guests" or "secret shoppers"
to test employees' responsiveness to customers in both normal
and stressful situations.
The objects of all this sincere attention by hotels are also the
objects of a lot of study these days. Ask some managers to
profile their customers, and more than a few might rely, "We
wish we knew!" They would only be half kidding, but they would
be more than half worried, because the manager who cannot
improve his occupancy rates over the long run will, himself, not
be around long.
Partly as a function of the construction spurt and a less than
commensurate increase in guest nights, the watchword in the
hospitality industry has become "segmentation." In marketing
terms, the objective is to win back market share-steal it, if
necessary-by identifying and pursuing specific clientele. By
directing its marketing at a more narrowly defined audience, a
hotel chain can realize substantial savings, both in marketing
costs and even in unit construction. Unfortunately, as many as
eighteen different, recognizable segments have been identified.
The three most standard and practical segments are economy,
mid-priced, and luxury (less than $40, $40-$80, and more than
$80 a night).
It is not difficult for consumers to see what is happening in
the lodging business. A spate of broadcast ads by a few economy
motels in the mid-1980s has become a full-blown shouting war as
marketers try to carve up budget-bound tourist pie. In the
1950s, "More is good" was a common hotel pitch. Now, "Less is
okay" seems to dominate. While wooing the cost-conscious
vacationer or traveling businessman, a motel that once might
have invested in a heated swimming pool, sauna, and glitzy piano
bar now simply promises to "leave the light on for you." A
forty-water, no doubt.
Market segmentation is complicated, somewhat akin to playing
chess. The philosophy behind it is based on a presumption that a
pattern of guest preference can be predicted. That is possible,
but it should be remembered that the hoped-for guests are the
same capricious folks who voted in the people who voted out the
investment laws that put the industry in its glutted
predicament.
Travelers have a fairly well-defined concept of where they fit
in among the various segments. Although they may fell inclined
to cross over to a higher-or lower-priced accommodation,
especially if that's what is available or it's a special
occasion, guests will mainly follow the pattern established by
their preference and economic situation. Hoteliers are banking
on that likelihood.
Segmentation makes the marketing of rooms a far simpler task.
Advertising may be narrowly directed through appropriate media
to prospective customers identified through exacting demographic
criteria. For the upper-scale segments, additional advertising
avenues are suggested by the nature of the amenities provided
on-site. Swimming pools, spas, and other "health-directed"
amenities, for example, can find their natural audience among
readers of fitness magazines. It is not likely, however, that
budget motels will advertise, "Go no money? You're our kind of
guest." Instead, the low-cost rooms will draw business gests on
tight budgets and vacationers' en rout to someplace else, and
they will not require the same elaborate advertising schemes as
the luxury hotels. This may explain why the budget segment is
the fastest growing, having doubled in size since 1980.
For the more upscale family, and business guests with an expense
account, a new phenomenon-the "all-suite" hotel-has become
popular. Its larger rooms and separate bedroom make possible
business meetings in the suit. Another innovation in the
industry is the "residential-style" suite, which has a fully
equipped kitchen and appeals to gests who need to stay for
longer periods. In fact, its rates are lower the longer the
guest stays. Bed-and-breakfast inns are growing in number, too.
Their entrepreneurial operators understand them yearning for a
simpler time when desk clerks knew and greeted their guests by
name.
Another indication of the seriousness of the present revolution
in the hospitality industry is the birth of creative marketing
programs. The aggressive chains are leaving no stone unturned in
their search for additional market share. By late 1987, the
major hotel companies where claiming millions of members in
"special guest" programs that used incentive to promote repeat
visits, much as the airlines were doing. Like the frequent flyer
programs, those millions of members undoubtedly include many who
belong to several programs and whose loyalty to the hotel is
less than absolute.
Among the incentives are special accommodations and credit cards
whose use adds points in the hotel's member program. Days Inns
of America inaugurated a "supersaver" discount program in 1985
to provide substantial savings for guests who make reservations
a month in advance. Room upgrades are common in the various
programs, as are free or discounted rooms. But prizes also
include free airline tickets, cruises, stereo equipment, and
even luxury automobiles.
Teddy Roosevelt would be amused if he could see what the
marketers of today have to do to draw guests of the no
adventurous variety to their hotels. The closest he came to
earning points at Lang's Ranch was for not spitting inside and
for leaving his horse outside. Life was simple then gotten
smarter and faster in response to the demands of competitive
pressures in the late twentieth century.
There is more travel today then in Roosevelt's and the Ingalls'
times because there is more need to travel. There also are more
places to go, ways to travel, and things to do when we get
there. For all of this diversity, there are more companies
fighting tooth and nail for the privilege of helping us do it. A
few are clearly better at it than others.
We've chosen five, based somewhat on segmentation, but largely
based on the way their guests tend to rate them. At the head of
the class is Marriott, the pacesetting lodging giant that still
retains its sense of family. Embassy Suites is building the
newest version of the better mousetrap, and the marketplace is
clearly demonstrating its pleasure. At the high-amenity end of
the spectrum, our nod goes to Canadian-based Four Seasons by a
whisker over Ritz-Carlton-both are distinctive service
providers. We also look at Hyatt, because of its consistency,
and Mississippi Management, because it's a good example of a
franchise and management company that does well under a number a
number of signboards.
Although you won't find them profiled, we also were impressed by
Red Lion and La Quinta for low-budget excellence and by Ramada,
Radisson, and Quality for providing more than a roof. As the
number of names we're dropping should suggest, that's good news.
Wherever your travels take you and no matter how tight or lavish
your budget, you can find plenty of good service in America's
hotels and motels these days.
Marriott Hotels and Resorts
In the grand old days of grand hotels, the hotelier to be
reckoned with was Conrad Hilton. Today, in an era of specialized
lodging, jet-driven business travel, and clock-conscious guests,
it's J. Willard Marriott, Jr. Perhaps no chief executive in
America provides a better example of how service cultures are
created, nurtured, and focused from the top down.
Hotels are the most visible part of Marriott's business: With
more than 400 properties in the U.S. and abroad, the comparison
to Conrad Hilton is not at all outlandish. In addition to the
flagship Marriott line, there are all-suite Residence Inns for
stays of five days or more, and Marriott Suites for
overnighters, plus the moderate-priced Courtyard by Marriott and
low-budget Fairfield Inn lines. Through its various restaurant
chains (most of them under the Roy Rogers, Bob's Big Boy, and
original Hot Shoppe's names) and airline and airport catering
services, Marriott feeds more people every day than any other
organization in the world.
Yet in many ways, Marriott is not a corporate name. Rather it
remains a family name-one of those rare organizations that has
been able to perpetuate its founders as a corporate touchstone.
J. Willard Marriott, Sr., who started the company from a
nine-seat root beer stand in 1927 (on the same day that Charles
Lindbergh took off for glory), made a point of being able to
call most of his employees by name. Today, his namesake son is
as much organizational father figure as top executive. It's his
vision, his sense of corporate mission, his adherence to strong
personal values that drives the company.
Marriott people talk about themselves as if they really are a
family, and they take an uncommon amount of pride in their work
as part of the worldwide clan. Ask someone like Sam Slobovitz, a
Marriott regional vice president, how an organization this large
goes about creating distinctive customer service, and you get a
pat answer: "It's simple. Just find a Bill Marriott to lead the
organization-and I'm only partly kidding."
Here's how the management handbook explains it under the heading
The Marriott Family: "The final description or element of
Marriott Management is perhaps the most difficult to explain to
one who has never worked for Marriott. It is something you feel
in every phase of every operation and is the strongest
underlying influence guiding the company. Unlike the impersonal
coldness of the majority of large corporations, Marriott has
human warmth about it which transforms the whole into one large
team whose members constantly work for and with each other...
Mr. Marriott does not look at work as drudgery but as an
opportunity for growth, development and accomplishment. He
believes that any honest work is honorable and good for the
individual, so that he or she can progress and gain
satisfaction. Mr. Marriott has always looked at his organization
with the same perspective as he views his family. The identical
principles of cooperation, support and openness are applied to
both 'families.'"
The current Mr. Marriott credits his father with the philosophy
of taking care of employees as he wanted them to take care of
the customer: "My father knew if he had happy employees, he
would have happy customers and that would result in a good
bottom line." On the evidence-one of the highest occupancy and
lowest turnover rates in the hotel industry-it works.
At Marriott, there's nothing inelegant in the details. If
someone finds a departed guest's galoshes, he's expected to take
the initiative and make sure they're returned. Marriott looks
carefully for its kind of people (the company interviewed forty
thousand applicants for twelve hundred opening-day jobs at the
Marriott Marquis Hotel in New York a couple of years ago), then
trains, rewards, and promotes them when they do things right.
Marriott is big on promoting internally-30 percent of its
managers started with the company as hourly employees. It pays
well, too. Both factors encourage a lot of employee loyalty.
Marriott also invests heavily in the development of frontline
people, making sure they have the training and skills to carry
out their jobs, whether that involves cleaning rooms or planning
banquets. That promotes service quality as well as personal
growth, and also engenders no small amount of employee loyalty.
As a result, customers (especially business customers)
continually rate Marriott as their top choice for lodaina and
meeting facilities. It's the hotel name most preferred by
business travelers. and the top choice of meeting planners and
attendees.
Since 1985 Marriott has dominated the annual survey of business
travelers conducted by Business Travel News. In 1987, the
magazine's fourth annual study ranked Marriott tops overall,
based on ratings in eleven service‑related categories-the third
consecutive year Marriott led the pack. Among seventy‑four
competitors, Marriott finished first in five categories and no
worse than tenth in the other six. (What's more, its Courtyard
subsidiary finished eighth overall on its own merits.) In 1986,
Marriott finished first in ten of the eleven service‑focused
categories, including being the easiest to work with to arrange
both individual and group business travel, plus having the most
helpful and courteous staff, and the highest food quality.
Becoming good is one thing. Staying good is something else
again. Most hotels-and, in fact, most businesses that have a lot
of interaction with their customers-have a "rate-me sheet" that
asks customers to evaluate the quality of the service provided
to them. Marriott calls its program GSI, or Guest Service Index,
and it takes the data a lot more seriously than most.
In fact, one of the few mildly annoying things that can happen
to you in a Marriott is feeling almost dunned to fill out a
rating form. They'll ask you at the front desk. They'll put one
on the night table in your room. They'll hand you one in the
restaurant. Some managers go so far as to make a contest of
it-they will buy something like a two‑hundred‑dollar briefcase
and park it on the registration counter: You fill out your
rating card and toss it in the briefcase along with your
business card, and every week or month or whatever they'll pull
out a business card (the ratings will long since have been read
and acted upon) and award the briefcase to that guest.
That level of effort is no accident. Each property has a quota
of forms to pass out in order to maintain a high response rate,
because the higher the response rate, the more complete and
accurate the GSI reading, and the better Marriott can respond to
what's happening to guests in the hotel.
It's interesting how Marriott handles the information on those
forms. The data is posted in every department for employees to
see. When a problem crops up, however, Marriott works very hard
to focus action and attention on the ratings, not the people
rated. Thus, if customers are waiting thirty seconds too long in
line, those thirty seconds (and not the people who might have
been working the registration desk at the time) become almost a
personified villain.
In addition to the GSI program, which provides local managers
with a running readout of their service quality, Marriott also
attacks on another front. On a regular but unannounced cycle,
every hotel is "shopped" by a third‑party research company. The
effort includes an nth‑name survey of people who have stayed in
the hotel over the past month. Those ratings go directly to
corporate headquarters, where they can have profound
consequences for a manager's career: Good ratings, high guest
satisfaction numbers, and the property manager's star will be
raising; bad ratings, poor guest‑generated feedback, and a
regional "swat team" may descend on the property to straighten
things out.
It truly does start with Marriott himself. He knows the business
inside and out, and he clearly enjoys it. Like his father before
him, he reads hundreds of comment cards a month and makes
innumerable site visits each year (two hundred thousand miles
annually) to see how things are going out in the field. When he
travels, he makes notes. The next time back he's likely to stun
local personnel by remarking how much better the lobby looks
since they moved the potted plants closer to the windows or.
replaced the wing chair by the east entrance.
He's also a hands‑on executive. When a new hotel was being
planned for the Walt Disney World complex, Marriott sat in on
focus groups with l meeting planners to find out what they
wanted and needed to organize top‑quality corporate meetings.
One comment he heard was that the ballroom space wasn't going to
be large enough for large meetings. It didn't take long for
Marriott to acquire adjacent property to provide the, additional
space.
As the introduction to the company's Success Kit For New
Managers explains, "Our success at Marriott is largely a
function of our service to the guest. Quality service depends on
you and the successful management of your people. If you treat
your people well and guide them in a positive manner, they in
turn will handle the guests with the warmth, friendliness, and
efficiency that are our trademarks. If you remember little else
please remember that we are all at Marriott to make our guests'
visits as comfortable as possible."
That reflects Marriott's own approach to his role as chief
executive as it relates to the company's two hundred thousand
employees worldwide: "My job," he explains, "is to motivate
them, teach them, help them, support them, and care about them.
If we take care of them, they'll take care of the guests."
Marriott Corporation
One Marriott Drive
Washington, D.C. 20058
1990 Update: The Marriott family now includes more than 530
properties worldwide. Conventional restaurant operations have
been deemphasized in favor of food service accounts and airport
and turnpike restaurants.
Back to top
EMBASSY SUITES HOTELS
A subsidiary of holiday corporation-best known for holiday inns,
the nation's largest hotel chain-Embassy Suites has been a
service leader in its own right virtually from day one. The
first of the nearly one hundred Embassy Suites around the
country opened its doors in Overland Park, Kansas, in 1984. That
same year, Embassy purchased the 24 properties of the Granada
Royal Hometel chain, the pioneer, under founder Robert E.
Woolley of Phoenix back in 1969, of the all‑suite hotel.
What Woolley recognized, and what Embassy Suites president
Hervey Feldman has refined into a highly sophisticated business
phenomenon, is that the typical hotel room was designed more for
construction and housekeeping efficiency than for guest comfort.
especially when that guest is a business traveler or someone
seeking a leisurely way to spend a weekend.
The conventional room, the most important part of the system
that serves the guest's needs, is dominated by a bed. It's a
place to sleep and little more. When the basic service a hotel
provides is a place to sleep, that's fine. But needs have a way
of changing, especially the needs of business travelers. The
interlocking of companies large and small on multiregional and
national levels has changed and broadened the standard hotel's
service mission to include providing meeting facilities, dining
and banquet facilities, even trade show and display facilities,
all of them located conveniently close to business addresses
wherever they may be found, rather than centralized in a
downtown core. Extended stays are also, common as selling
becomes more complex, which means many business travelers end up
using their hotel rooms as a combination meeting room, showroom,
and office‑away‑from‑the‑office.
When relatively larger numbers of people are involved, the best
way to provide business‑oriented facilities is in separate and
distinct meeting rooms, conference and trade show areas, and
restaurants. But when only a handful of people need to be
involved, the hotel room can serve such a purpose-if, that is,
it has been designed appropriately. Beds, unfortunately, make
poor conference tables. (And in an era when we do business from
our rooms as business travelers, beds provide
other complications sometimes.)
Embassy Suites is a working example of a company doing something
different to meet a fast‑developing market need. Its success is
a function of "listening sideways"- perceiving and responding to
a new niche rather than competing in a straight line by
replicating standard designs and services.
In the all suite configuration, the bed is in its proper place:
a bedroom that is physically separated from the rest of the
space available to the guest. In the Embassy Suites design, the
bedroom has its own television and telephone. In addition to bed
and bath, the suite includes a living room furnished with sofa
and chairs, a combination dining and work area, another
television and telephone, and often a modest wet bar with
refrigerator and microwave oven.
Continuing the design of Woolley's original Granada Royals
(Woolley himself is the chain's largest franchisee), all Embassy
Suites are built around a central atrium that provides both
visual appeal and personal security-there are no long, lonely
halls to walk. Included in the room rate is a free, full
breakfast, cooked to order in a restaurant located in the
atrium. Guests have been known to wander down to breakfast in
their pajamas, and that's just fine with the management. It's
the kind of "dress code" that says people feel right at home.
Evenings, complimentary cocktails are served to allow guests,
and their guests, to mix and mingle.
The primary service focus is the business traveler and his or
her clients or prospects, and Embassy Suites properties are
designed from the ground up to serve that demanding customer's
needs. Although every room is a meeting room in the Embassy
Suites scheme of things, each location also includes a
restaurant, lounge, recreational facilities, and substantial
meeting space. It also includes access to a national group and
meeting services department that has been empowered to book a
prospective customer's meeting into someone else's hotel if the
area's Embassy Suites property can't handle it.
What elevates the Embassy Suites physical and operating design
still another notch is the attention management pays to the way
its people " perform within those facilities. Periodically,
hotels in the system poll their customers face to face to find
out how they're doing. For a period of a month or more, managers
will buttonhole five guests a day around the hotel and interview
them about their expectations and experiences. The next day,
those guest comments will be posted in the employee lounge and
reviewed by the on-site management staff. They'll also be
forwarded to the headquarters of Embassy Suites in Irving,
Texas, just outside of Dallas. Both on‑site and in Irving, those
comments-and occasionally, if infrequently, complaints-will be
studied and analyzed and used as a quality‑control tool.
In 1987, for example, these mini‑surveys were conducted with
more than six thousand guests who rated everything from how long
it took them to check in and out to what they thought of the
free cocktails and breakfasts The biggest improvement suggested
was better free breakfasts-and Embassy Suites has responded by
improving and expanding the menu.
It also involves its people at every level of the hotel. The
hospitality industry, like many other service segments, depends
a great deal on lower‑paid, often highly transient workers.
Embassy Suites is no exception. To deliver a quality experience
to its guests, the chain uses a variety of tactics, prominent
among them policies and procedures designed to keep employees at
every level informed, involved, and motivated.
In addition to the previous day's guest comments when surveys
are being taken, for example, each property posts its particular
occupancy rate and estimated profits for all employees to see.
When there are profits-and there usually are, since Embassy
Suites, according to fortune, earns a gross profit margin of 50
percent, about 20 points better than comparably priced
competitors such as Hilton, Sheraton, and Westin-even the
lowest‑paid workers know they can take home monthly bonuses of
one hundred dollars or more.
If money is one motivator, personal progress is another.
Entry‑level workers don't have to stay entry‑level, and at
Embassy Suites many don't. At any given time, between 25 and 80
percent of the firm's hourly workers are in training programs
that help them upgrade or expand their skills and qualify for
better‑paying work. That means housekeepers can aspire to the
front desk-and, on the basis of their training, will be paid a
little more for making beds and cleaning bathtubs while they
wait for their chance to move up. By continually cross‑training
themselves, employees not only learn new jobs qualify for pay
raises as often as every three months.
The best example of upward mobility may be Hervey Feldman
himself. While he spent thirty years learning the hotel
business, almost all of it in the Holiday Inn system, the first
and enduring lessons in hotel service he recalls date back to
his teenage years. As an errand boy at the Loon Lake Resort in
upstate New York, he earned the minimum wage for everything from
washing dishes to caddying on the golf course-but the $150 a
week he hustled to take home was better than the paychecks that
supported a lot of the families in his New Jersey neighborhood.
"It taught me the most significant lesson for my future life,"
he told the Dallas Business Courier a few years ago: "Make the
employees happy and in turn ask happy employees to do things to
make customers happy After that, it's all score keeping."
Meanwhile, day-to-day benefits show up on the frontline, where
the hotel's guests stand to benefit. Because of the extensive
cross‑training, each Embassy Suites has a ready and willing pool
of workers able to Step in during peak periods, vacations, or
when other workers are in training classes. That cuts down on
delays and pumps up enthusiasm. A new computerized front‑desk
system will allow any Embassy Suites to pull up guest records
system wide, lending itself to personal service even if the
traveler has never walked through the particular property's door
before.
All that training has another payoff for employees and employer
alike: The current directory of Embassy Suites locations is
expected to more than double by the early 1990s, in keeping with
company projections that foresee the all‑suite segment of the
market growing from about 4 percent in 1987 to 20 percent by the
turn of the century. Corporate growth provides personal growth
opportunities for proven achievers.
The immediate acceptance and success of Embassy Suites shows the
risk‑taking was well thought out and based on a sound assessment
of the specifics of its chosen market segment. Two thirds of the
hotel's guests are businesspeople, and women traveling on
business have taken particular notice: They account for about 25
percent of all hotel business guests; they make up nearly 40
percent of Embassy Suites' clientele.
It's also indicative of a customer‑centered attitude that has
put this five‑year‑old hotel chain at the top of the service
quality polls for mid-and high‑priced lodging. In 1987, the
experiences of 232,000 readers of Consumer Reports with the
nation's major hotel chains ranked Embassy Suites number one for
customer service in both the mid‑priced and high‑priced sections
of the industry. And, as Fortune pointed out, the results of
good service are showing up on the bottom line as well.
Embassy Suites, Inc.
A subsidiary of Holiday Corporation
222 Las Colinas Blvd.
Irving, TX 75039
Back to top
Four Seasons Hotels
Each year, institutional investor magazine asks a panel of
senior bankers and international financiers-each of whom spends
an average of more than eighty nights per year in hotels around
the world-to rate their favorite hotels. Of the thirteen North
American hotels named among s their top fifty choices worldwide
in 1987, four of the top seven were properties operated by Four
Seasons Hotels, Ltd., of Toronto. The honor roll: The Pierre,
New York; Ritz‑Carlton, Chicago; Four Seasons, Toronto; Four
Seasons, Washington, D.C.
The company's only European entry, the Inn on the Park in
London, also made the list. In fact, 1987 marked the third
consecutive year that all five hotels were ranked in the top
fifty, which means 10 percent of the best hotels in the world,
according to the magazine read by more than 350,000 top‑level
financial executives in 140 countries, belong to the same
family.
Institutional Investor isn't the only one to notice Four
Seasons' high quality accommodations. Of the thirty‑three U.S.
hotels described in Rene Lecler's The 300 Best Hotels in the
World, four are (or were) Four Seasons properties: Ritz‑Carlton,
Chicago (not to be confused with the hotels of the separate and
no related Ritz‑Carlton chain, which also come highly rated);
Pierre, New York; Four Seasons, San Antonio (since sold); Four
Seasons‑Clift, San Francisco. When Business Travel News asked
eighteen hundred business travelers and travel agents to rate
hotel chains on eleven quality categories in 1987, the runner‑up
to top‑rated Marriott was Four Seasons (in a dead heat with the
aforementioned Ritz‑Carlton chain).
Well, sure, you might concede, any big hotel chain should place
a few winners out of its hundreds of properties. Which is
exactly the point: Four Seasons is not a big hotel chain. It
operates just twenty‑two hotels-fifteen in the U.S., six in
Canada and one in England. It's not an old company, either. It
was founded in Toronto in 1961 and didn't enter the U.S. market
until its 1976 purchase of the Chicago Ritz‑Carlton. That makes
for a pretty high incidence of winners in a pretty short amount
of time.
You could say that's by design. Four Seasons founder and
chairman Isadore Sharp started out as an architect, and he's the
first to admit that' the first hotel he built was a less than
luxurious motor court in the red‑light district of downtown
Toronto. Its interior design, however, was eye‑catching, and its
services quite a bit above and beyond the norm for a
conventional motor inn. Both were indications of things to come,
but in 1961 the world's great hotels were almost universally
one‑of‑a‑kind independents. The conventional wisdom was that you
couldn't duplicate quality in a luxury‑oriented property. Over
the ensuing years, Sharp's company has become known for
conclusively disproving that old bromide.
According to Canada's Report on Business magazine, it's "an odd
brand of luxury. Call it ascetic hedonism. Ascetic because
Sharp's hotels are small (average size: 340 rooms),
unexceptional in their exterior design, and about as quiet as an
art gallery. And they scrupulously appeal to the ascendant
less‑is‑more mentality among upscale consumers by emphasizing
on‑site health and fitness clubs; low‑car, low‑sodium meals; and
low‑ and non‑alcoholic beverages ... But Sharp's hotels are also
hedonistic. Fine appointments, including antique furnishings,
Royal Doulton china and fresh‑cut flowers ... evoke the atmosphere
of an ambassadorial residence."
Think of it as a grand hotel on a more modest scale. Four
Seasons concentrates on creating an environment of understated
elegance, whether in a newly built property or through the
refurbishment of a fine hotel whose best years might seem to be
behind it. The Pierre, for example, was an aging dowager when
Four Seasons purchased it in 1981. Several million dollars
later, it was reborn as one of the world's premier places to
stay. Seattle's majestic Olympic Hotel was showing its age and
had long; since lost its prominence in the community until Four
Seasons devoted $60 million to its restoration. The Inn on the
Park London (the park is Hyde) was expected to be just one more
pricey entry in an overbuilt Luxury hotel market when it opened
in 1970. Today, it's admired by hoteliers as well as travelers
worldwide, as evidenced by its consistently high occupancy rate
(95 percent or better in an industry where 70 percent is
considered good).
Whether the property is new or old, owned by the company or
operated under a management contract, Four Seasons dedicates
itself to pampering guests. That's a spare‑few‑expenses
philosophy that caters to an admittedly special clientele.
Yet the way Four Seasons goes about the job of providing
personal service to very demanding guests is no less noteworthy
for its relatively higher price. From the room service waiter,
who cheerfully and sincerely thanks you for your order as he's
serving it, to the hotel's general manager, who may spend
several hours a week writing letters to his own employees to
share guest comments and commendations with them, the people at
a Four Seasons make an uncommon impression on even the most
jaded traveler. And as customers show over and over again, they
will pay more to be served the way they want to be. There's
something to be said for learning from the best.
What makes Four Seasons a service leader? Start with scale of
operations. A typical Four Seasons property has about 350 rooms
and suites compared to the 500 or more that would be found under
a competitor's roof: enough to be profitable, yet not so many
that the staff can't provide personal service to its guests. In
contrast to the rooms, however, public facilities-ballrooms,
restaurants, and the like-are commonly larger than needed for
the hotel itself.
That's because a Four Seasons sees itself as part of the fabric
of its city and tailors itself to the needs of the local
community. Consequently, the hotel itself will be centrally
located, either downtown or in proximity to an area's corporate
headquarters, not parked out by the airport.
Next, add staff. The average hotel, according to Hotel &
Restaurants International, has about two employees for every
three guest rooms. Four Seasons generally doubles that staffing
norm: four employees for every three rooms. The more people on
duty in the hotel, the more service they're available to
provide.
And the more service they're trained and empowered to provide.
From top to bottom, employees are carefully selected. Personnel
policies have long favored hiring attitude over experience. If
you really want to do the job right, Four Seasons believes, you
can learn how. If you don't care about the quality of what you
do all the experience in the world won't make for satisfied
guests.
Once good people have been found, they're supported with
training and then compensated appropriately. The front office
staff at a Four Seasons may be earning double to triple the
industry norm through a combination of salary and bonuses; it's
not at all unlikely that the uniformed doorman who welcomes you
is a college graduate. To keep performance focused on guests at
each hotel, not corporate wide, 80 percent of all bonuses and
incentives are tied directly to the individual hotel's
profitability.
Then, think about yourself. What do you like to do, to eat, to
see and hear around you? You're likely to find a lot of that
designed into a Four Seasons‑run hotel. Though it serves what is
generally termed the Luxury end of the lodging market, Four
Seasons isn't trying to provide luxury. Its focus is on comfort.
That means a residential style that emphasizes tasteful decor,
antiques, original art. It means if you need or want something,
there's a true concierge available to serve you.
It means if you're trying to stay healthy on the road, you can
find a choice of gourmet selections with just 500 to 650
calories-outstanding food that's low in cholesterol, low in
sodium, and yet doesn't look like something catered from the
coffee shop out by the interstate. Four Seasons' "Alter native
Cuisine" was introduced back in 1984-as a result of paying
attention to guests and the way their lifestyles were changing.
Paying attention is an important, if sometimes invisible, skill.
The second time you stay at a Four Seasons, you may feel as if
you never left. If you enjoyed (or abhorred) the view from a
certain room the last time or requested a specific kind of soap,
or wanted an extra pillow, you often find "advance preparations
have been made on your behalf. There's no: secret involved: On
your first visit, the staff took notes. Literally. And
extensively. Your guest history is part of each hotel's
computerized database, and it's accessible by all hotels in the
Four Seasons system It will be updated this time, too, and every
time you come back Predictably, the top‑down service imperative
is also at work, beginning with Sharp in Toronto. It's his
belief that the last decade of the century will find an
increasingly sophisticated, better educated, and more
travel-savvy customer checking in at the front desk of hotels
worldwide. That customer wants not just quality, but the highest
value for his or her travel do. To continue to succeed, Sharp
maintains that Four Seasons must continue to attract the kind of
people able to deliver that value.
Accordingly, general managers are recruited for their ability to
act as the "conductor of a symphony," making sure all the
players make the right kind of music at just the right time, and
in perfect harmony. 'It's important that the manager set the
correct example for employees and frequently communicate to his
staff," Sharp told Hotels & Restaurants International in 1986.
"You must try to ensure that the reality in the working
environment matches the rhetoric, i.e., it's no good to show
your staff all sorts of audiovisuals about how to be courteous
and then have management giving the wrong example."
From Sharp on down, Four Seasons managers are good examples of a
thoroughgoing service‑quality commitment that has paid off
handsomely for the business-and for the customers who have made
that business an international success.
Four Seasons Hotels, Inc.
1165 Leslie Street
Toronto, Ontario M3C 2K8
1990 Update: Ten Four Seasons hotels received American
Automobile Association's Five Diamond Award in 1990, marking the
ninth consecutive year that Four Seasons, with just twenty‑two
properties, has received the most Five Diamond ratings from AAA.
Back to
top
Hyatt Hotels & Resorts
A curious thing happens when people are asked to rate their
favorite hotels. Consistently, they name a lot of Hyatt
locations. Just as consistently, they can't exactly say why. It
isn't the vaulted atrium lobbies-a Hyatt trademark since it took
over and finished construction of what became the Hyatt Regency
Atlanta in 1967-or the glass elevators, or the fancy revolving
rooftop restaurants. There's something about a Hyatt, some
subtle quality of the service and facilities provided, that
keeps bringing people back.
Consistently, it seems, what makes Hyatt stand out in the hotel
business is consistency.
"If ever there was a time when the orange juice had to be fresh
or when the turndown service had to occur in every instance,
it's right now," Hyatt Hotels president Darryl Hartley‑Leonard
told Restaurant Business in 1986. "If there is parity in hotels,
and I think we all believe there is, then the buyer becomes very
intolerant of things he had been tolerant of in the past. The
customer is totally in control today. He not only has the
opportunity of going to another hotel, he can go to a very
similar hotel."
Hyatt Hotels & Resorts is actually two separate and olstmct
compames that manage or operate hotels under various Hyatt names
(Hyatt, Hyatt Regency, Park Hyatt, Grand Hyatt, and Regency
Club). Hyatt Hotels Corporation is the North American side of
the business. It operates eighty‑one hotels and twelve resorts
in the U.S., Canada, and the Caribbean, including the first
Hyatt near the Los Angeles International Airport, which Jay
Pritzker bought in 1957 from a cash‑strapped owner. Hyatt
International's scope includes twenty‑nine hotels and fifteen
resorts in twenty‑six countries. Although the company doesn't
segment in the sense of maintaining different brand and price
categories, its properties fall under one of four distinct
forms: large commercial hotels (generally located in a downtown
area, and often a key component in a given city's downtown
revitalization efforts); suburban (or "smaller urban") hotels;
resort and convention‑oriented properties; and
small‑but‑luxurious hotels (the Park Hyatts).
The holding company, Hyatt Corporation, is privately held by the
Pritzker family of Chicago, but most of the hotels under the
Hyatt name are owned, either entirely or substantially, by local
investor groups. Hyatt serves as manager and operator, and
sometimes minority stakeholder. To maintain accountability for
service quality system wide, Hyatt forgoes franchises in favor
of direct, long‑term management responsibility-generally twenty‑
to thirty‑year contracts-whether or not it has an equity
interest in the property.
In some respects, the Hyatt reputation for consistency is
misleading. It implies a sameness of design and treatment that
doesn't turn out to be the case. In fact, in marked contrast to
cookie‑cutter chains that promise the same familiar experience
from one city to the next, no two Hyatt's are alike. That's not
to say that operating standards vary. They don't. But each
property is designed, built, and managed to be an integral
busines5 and civic element in its particular location and for
its specific clientele or market niche.
Since the original "atrium" hotel-the legendary John
Portmann‑designed edifice in Atlanta with its twenty‑one‑story
central core-debuted, the company has been considered the
trendsetter in the upscale hotel market for its willingness to
take chances on new configurations and innovate in service
areas. Its hotels are visually exciting, run by independent
managers given a good deal of authority by Hyatt's decentralized
operating style. At the same time, Hyatt has been slow and
selective in its growth, a quality‑conscious pace that has
dampened the effects of an overbuilt industry's current room
glut at the high end of the market.
Similarly, the segmentation that now characterizes the hotel
industry has been part of Hyatt's management style for nearly
two decades. But instead of building separate brand‑named
properties for separate segments of the traveling public, Hyatt
balances their different needs under the same roof.
For example, the traditional Hyatt-five hundred or more rooms in
a large metropolitan area-gets high marks from both
discriminating individual travelers and business group meeting
and travel planners. That's because there are facilities for
each, carefully arranged and physically separated so the
individual's desire for privacy and personal treatment doesn't
interfere with the group's need for large‑scale meeting rooms
and entertainment. For the traveler seeking highly personal
service and the ambience of a smaller property, Hyatt also
offers the Regency Club: one or two floors set aside as a
hotel‑within‑a‑hotel, with separate key access and concierges.
Within the industry, Hyatt receives high marks for making hotel
food and beverage service profitable. Of course, it wouldn't be
profitable if it weren't desirable to guests and people in the
community who expect the best from the restaurants in a Hyatt
property. Consequently, food quality is an important part of the
company's service strategy. Some Hyatt's have as many as five
different full‑service restaurants, and many also have a gourmet
deli located just off the lobby. That shows up on the bottom
line: Where the average full‑service hotel gets a little under a
third of its Operating revenues from food and beverage services,
37 percent of Hyatt's revenues come from those sources.
Hyatt's service system expertise is visible in other parts of
the hotel, too. The company was the first to provide in‑room
amenities such as shampoo and sewing kits, to offer computerized
guest check‑in at larger (convention‑scale) facilities, and has
been a pacesetter in guest‑appreciated services ranging from
fitness and security programs to express check‑out.
Achieving consistency in a decentralized service culture is also
a matter of good design. Hyatt uses very few consultants. It
also pushes training and management responsibilities out to
regional and property managers. In fact, all corporate‑level
functions, from management to marketing, are duplicated at the
regional and hotel levels. The effect is much like providing
identical shipments of flowers to a hundred talented gardeners:
The actual plants will be the same in each garden, but each plot
will display a unique flair.
For the future, Hyatt has committed itself to taking its
big‑city style to both flashy, upscale resorts and smaller‑scale
suburban hotel locations. It promises to be an interesting mix.
The new Hyatt Regency Scottsdale showcases nearly $4 million
worth of water wonderland: ten pools, twenty-eight fountains,
forty‑seven waterfalls, and even a beach. Prototype suburban
metro properties with two to three hundred rooms may have to
forgo atriums and ballrooms to be competitive, but Hyatt
executives promise the smaller size will not be accompanied by
diminished service.
That, after all, wouldn't be consistent.
Hyatt Hotels Corporation
200 West Madison
Chicago, IL 60606
1990 Update: The Hyatt family continues to grow: eighty‑eight
hotels and fourteen resorts now operate in the U.S., Canada, and
the Caribbean; twenty‑nine hotels and nineteen resorts on the
international side. The Regency Club brand name is no longer
used on properties.‑To make sure everyone has a first‑hand
knowledge of how the business really works, the company
instituted "Hyatt In Touch Day" in 1989, closing Chicago
headquarters so all 375 employees, from president Darryl
Hartley-Leonard to the receptionists, could spend the day
working on the frontlines in various Hyatt hotels. The practice
is expected to become an annual event, in part as a response to
an internal travel futures study that identified one of the
biggest fears of business travelers in the '90s as "increasingly
bad service from hotels, airlines, and car rental companies."
Back to
top
MISSISSIPPI MANAGEMENT INC.
The sign out in front of the hotel in ALABAMA may look the same
as the one back in Massachusetts, but all properties of the same
brand name are not necessarily created or managed equal. Just
like restaurant, car rental, broadcasting, and other seemingly
monolithic service delivery companies, many national and
regional hotel corporations sell franchises to independent
operators as a cost‑effective way to expand their systems. Some,
in fact, actually operate very few of the properties that bear
their names. Consequently, while the overall design and quality
standards may be the same coast to coast, there will be
significant differences in day‑today operations that reflect, at
least in part, different service priorities among on‑site
managers and frontline workers.
Thus, Holiday Corporation will point with just)fiable pride to
various examples of good service management among its
company‑owned Holiday Inn properties.
It also will point to some of its franchisees as equally
noteworthy providers of top‑quality service. ln that context,
the name Mississippi Management is sure to come up. The
thirty‑year‑old Jacksonbased company owns and operates nine
well‑above‑average Holiday Inns in five states around the south,
plus an Embassy Suites, a Ramada Inn, a Seasons Resort, and five
Cabot Lodges-the last its own growing entry into the mid‑level
hotel market.
Mississippi Management is especially noteworthy for the
importance management attaches to maintaining good service
standards at the frontline, and the relatively high level of
investment it routinely makes in programs to ensure and enhance
the treatment it gives its guests. For example, in the name of
service quality it has held an internal, company‑wide
Olympics-with such events as drink‑mixing, egg‑cracking,
table‑clearing, key‑sorting, and sheet‑and towel‑folding, not to
mention the grueling housekeeping cart relay. Each year, month
by month, there are constant smaller‑scale competitions within
and among its properties, with rewards to the best reservations
centers, the top front desks, the outstanding kitchens.
No phase of the operation of a modern hotel is overlooked.
Mississippi Management sends housekeepers to annual seminars and
polls front‑desk clerks for ways to improve check‑in procedures
and incorporate guest feedback into room furnishings. Every week
it rewards the cooks at each property who come the closest to
cutting the prime rib portions the right size with a ten‑dollar
bonus; there's a similar bonus for the buffet carver who comes
closest to the average serving size. Housekeepers who qualify
for an incentive plan can boost their hourly pay by making more
beds than a property's productivity standard-provided they
continue to pass quality inspections. Food and beverage managers
can increase their pay by as much as 50 percent through
performance bonuses.
As people stay with the company, their experience is channeled
into an internal management training program, through which
Mississippi Management "grows" its own general managers. The
program takes six to eight months and includes extensive
on‑the‑job training in every department from reservations and
the front desk to maintenance and food service. An occasional
department manager may be hired in from the outside, but most
mid‑ and top‑level managers have and continue to come up through
the ranks.
One prize graduate is Cindy O'Cain, general manager of the Cabot
Lodge in Nashville that she opened for Mississippi Management in
1987. O'Cain is also a graduate of the school of hotel and
restaurant administration at Florida State University, but her
experience with Mississippi Management predates her academic
work. She started in the "hotel business" right out of high
school (class of 1978) as a waitress in the company's Holiday
Inn in Lake City,
Florida, and worked her way up inside a succession of the
company's properties while working her way through first a
junior college, and later Florida State. When she picked up her
degree, she had a pretty good idea who she wanted to work
for-and Mississippi Management lost no time in finding a place
for her.
Many hotel management companies are unwilling to make such
investments, whether at the frontline or in supervision and
management, even if they are able. The hospitality industry,
they will note by way of explanation' is characterized by
turnover rates as high as 300 percent annually' especially in
low‑status, low‑pay jobs (a catalog that ranges from the maids
in the housekeeping department to the night clerks on the front
desk). Just bringing new employees up to speed is a sometimes
daunting task.
With turnover among its fourteen hundred employees averaging
less than a third of that industry norm, on the other hand,
Mississippi Management maintains that its long‑standing practice
of investing heavily in training, motivation, and incentive
programs at even the lowest levels of the company encourages
Rood treatment of guests an builds loyalty and longevity among
employees, no matter how low they stand on the organizational
totem pole. That's why Mississippi
Management bestows every thing from cash awards for annual
anniversaries to a trip anywhere in united States after fifteen
years (twenty‑year veterans earn a Caribbean cruise for two) on
everyone from property managers to maids.
To further encourage loyalty and stability among its hourly
workers, Mississippi Management also has introduced a
cafeteria‑style benefits plan, and it plans to add to it over
the next few years as opportunities present themselves. Child
care is already included; a two‑tier medical plan designed with
an eye toward dual‑earner families where the other spouse
already has coverage is on the way.
The reason: In a job market where the supply of entry‑level
workers is dwindling, the company believes it will increasingly
be competing for people not just against other hotel operations,
but against the full spectrum of manufacturing and service
businesses. Earle Jones, Mississippi Management's president
considers the pay, the programs, the promotions, and the perks
as investments in the company's very future.
The return on investment isn't always easy to measure, but there
are ways to make it visible-and the customer clearly is a
beneficiary. Statistically, or example, about 4 percent of
Holiday Inns' guest comment cards turn up a complaint from a
traveler dissatisfied with his or her stay. The Holiday Inns run
by Mississippi Management consistently receive 25 percent fewer
complaints than the national average for the chain. What's more,
a similar comment‑card feedback system at its own Cabot Lodges
has turned up a continuing average of just one complaint per one
hundred arcs returned since that mini‑chain debuted in 1985.
The hotel industry undoubtedly will continue to evolve tightly
targeted pricing and property‑design strategies, but the names
travelers will remember will be the ones where they received the
treatment they expected and desired. For Mississippi Management,
the challenge is to make sure that the two Holiday Inns in Baton
Rouge, Louisiana, the new Cabot Lodge m Nashville, and the other
properties it operates under its own and other names continue to
show up on those lists of personal favorites.
Mississippi Management, Inc
P.O. Box 16807
Jackson, MS 39236
Back to top
|