And So the Debate Rages On...

Above: Yet another hilarious cartoon drawn on the back of a business card by Hugh MacLeod!

And So the Debate Rages On...

The debate amongst British publicans and landlords rages on… The same argument that has been a hot topic of conversation since July 2007… Should smoking be banned in pubs?

Nowhere is this debate more alive and more relevant than on the blogs and forums presented by The Publican, a popular online magazine for pub and inn owners who are ‘Proud of Pubs’.

The main argument is that the smoking ban is having an extremely detrimental effect on pubs in the UK and that banning the use of a legal substance goes against our human right (and democratic right) to choose.

However, the other side of the coin is that the ban is in place and publicans must accept this, take responsibility for their businesses, and find ways to use the ban to their advantage.

My Views

To make it clear at this point, I am neither strongly for nor against the ban. I am a non-smoking, pub-loving individual who regularly frequented such establishments prior to the ban on smoking and will continue to do so post ban. I DO like waking up the next morning without my hair stinking of stale smoke… But I DO NOT like what the ban stands for. I am a firm-believer in freedom of both personal speech and action and if a ban on smoking is imposed now, what will be next.

But is the Ban the ONLY Cause of Pub Bankruptcies

However, many publicans are blaming the ban for the failure of their establishment but fail to recognize that every pub is in the same position, and every landlord or landlady has the same opportunity to adapt and evolve their business to overcome the hardships created by the ban.

As Steve W from The Publican forums says, “The law has changed, plain and simple, so we have to adapt and work in new ways within the law.”

I must admit to liking and supporting Steve W’s opinions. In one of his postings he argues that, “Smoking indoors has been banned so publicans must now TAKE RESPONSIBILITY and move their businesses forward to adapt to the new law, instead of just whining about it. I've never claimed my location isn't an advantage, that would be stupid, BUT I pay handsomely for such a location (obviously) so, relatively speaking, I have little advantage over any other pub ( a pub only 2 minutes walk from me, but off the high street, pays £30K less rent) and the point I've made in the past is that your location guarantees nothing; the previous lessee was almost bankrupt - in exactly the same pub in exactly the same location - you have to work the pub to take full advantage of its location, wherever it is.”

Here here, Steve W!

Creating an attractive seating area outside is, of course, one way to take responsibility. However, many publicans are creating ‘outside smoking areas’ which are unattractive and uninviting. Why not create an outside area which is attractive to all patrons and ensure that each table includes an ashtray? Why does it have to be an ‘outside smoking area’? This caters to all pub goers and creates both a smoker and non-smoker friendly environment.

Alternatives...

Another alternative has been to increase the amount of attention placed on food within pubs and inns, however, Pete Robinson makes a good point on The Publican forums when he says,

“Let's imagine all wet-led pubs decided to 'move their businesses forward', i.e. concentrate on food. I'm sure that many closed pubs have already gone that route only to discover it's no guaranteed ticket to survival. They would be moving into a shrinking market when competition is at an all-time high - a recipe for disaster. Since pubcos targeted the food sector it's reached such saturation point they can't even find decent catering staff. Read this short report in The Recruiter

So what’s left?

One option for many pub and inn owners is to concentrate on the accommodation side of business. However, many publicans are inexperienced within this highly customer service oriented sector and are unable to provide guests with the level of stay they require. Especially considering the demographics of a typical inn accommodation customer (female, 30 to 45, university educated, looking for a romantic break) vary considerably from the typical demographics of a regular pub goer!

Also, many of the pub and inn owners that I have met over the past year or so have had little experience with managing bookings. Any publican serious about evolving this side of business must throw away his or her notebook and pencil booking system and invest in a customer relationship management system (CRM) and also an effective booking system.

Despite initial reactions of, “we can’t afford an investment like that”, a booking system doesn’t have to be expensive. Take, for example, the booking system offered by Hotel Booking Systems, a UK-based company that focuses on the needs of small hotels, pubs, inns, motels, and guest houses. They offer a FREE 30-day trial by clicking HERE and an extremely affordable, and simple to use, system once you’ve decided to take the plunge.

So, if you’re a pub or inn owner with the means to offer accommodation, then surely this is the way to TAKE RESPONSIBILTY and evolve your business in order to survive this difficult time.

And, if you need any advice with regards to CRM systems, booking systems, or training for your inn, pub, or guest house, please do not hesitate to contact me.

Thanks for reading and best of luck,

Emma

Please feel free to leave your comments below or email me on eharradine@hotmail.co.uk

How to Succeed in a Difficult Economy

Hotel occupancy is suffering...

In my last entry, I discussed the current trends in RevPAR and HPI. Occupancy is suffering, and this deterioration looks determined to continue for some time. In fact, I read on Travel Daily News last month that,

“PricewaterhouseCoopers estimates 2009 average U.S. hotel occupancy will fall to 56.5% - a decline of 5.2% from 2008 and the lowest in more than 20 years. More importantly PwC projects RevPAR to decline 11.2% this year. It is hard to imagine any hotel getting through this year unscathed.”

Therefore, now is the time to ensure that your hotel stays one step ahead of the competition. The economic situation will hurt your competitors as well, and they may not ever see the light at the end of the tunnel. You need to guarantee that you do; but how will you accomplish this?

It’s all to do with your internal and external marketing…

Many hotels have begun to slash room rates in an attempt to fill rooms. However, you must remember that this tactic can be easily copied by the competition. If you and your five competing hotels all slash prices, or even offer additional nights for free, the impact on RevPAR will be significant. Plus, once you have dropped your room rates, it will be difficult to restore them once the economy improves.

So, don’t slash your prices for dramatic effect; increase price flexibility and be prepared to add value to your guest’s stay. Consider working with outside businesses, such as car rental or day trip companies, to create packages that will ‘wow’ your guests.

In the same way that many companies have cut training, a large number of hotels are now slashing advertising. Ensure that you have a large online presence by improving your hotel’s website and conducting search engine optimization; you need to be listed on the first page for any keyword searches related to your hotel and your area.

Make sure that every page of your website and every word of your hotel blog communicates value. Your prospective guests need to know that they are getting maximum value from every pound they spend. Remember that comfortable surroundings during difficult times make your hotel worth every penny your guests spend.

Customer Relationship Management...

Managing your relationship with your customers is extremely important right now; you need to establish loyalty. Hotels with the most loyal customers are also the most profitable.

Your competitors will most likely focus on attracting new customers. You need to have a more balanced approach toward customer acquisition and retention and actively manage your customer relationships to build loyalty.

However, managing customer relationships has become sophisticated and requires a remarkable amount of coordination. It is all about the movement of prospective guests through the customer lifecycle from awareness to loyalty. This can start with your hotel website, blog, and any other form of advertising you use, all the way through to the up-selling used by employees and the hotel booking system that you use to store guest information.

Remember that loyalty comes as a result of:

1) Using advanced CRM and Hotel Booking Software which has become extremely affordable, even if you are running a small hotel, motel, or guest house.

2) Ensuring your advertising and added value are highly personalized and individually targeted. Remember that your message must be relevant to your stressed and financially-burdened guests.

3) Creating a strong emotional bond with your guests. There may be years between visits but loyal guests do return and give you referrals. Everything from the first view of your website, through the moment they make a booking, to the moment they check out must feel personal. Guests want to feel wanted.

If you take this advice on board, you stand a greater chance of staying ahead of your competitor. Now is the time to implement the new CRM and booking system that you’ve been considering. If you properly implement these systems you will significantly enhance your chance of success during difficult times.

Don’t forget that loyalty is the key to success!

Good luck to you all,

Emma

Empowering Employees

In yesterday’s article I touched on the idea that disempowering employees leads to poor customer service and lack of product / price / service flexibility. I have experienced this phenomenon twice today.

My first experience occurred during my daily visit to Costa Coffee in my home city of Nanjing. I ordered my usual Café Latte and requested a glass of cold water. The look on the cashiers face was priceless. “Cold water?” she asked. “Yes”, I replied, “cold water!” “Do you mean a bottle of water?” “No”, I replied, pointing, “I’d like a glass of cold water from your water machine over there”. The cashier huddled in the corner with her manager for a number of minutes before the manager wandered over to confirm that I was in fact requesting a FREE glass of water to accompany my overpriced coffee. The manager, looking very pleased with himself, ordered the cashier to pour me a glass of water and went back to pretending to look busy. During this process, I was extremely tempted to walk out and never return. The cashier wasn’t even allowed to provide a free glass of water without first checking with her manager!

The second occurrence was later this afternoon when conversing with a client and his employees. I gave a thirty minute presentation to the middle management of a medium-sized Nanjing hotel and after the presentation I asked the staff a number of questions to clarify the message I had delivered. Before any employee answered a question, they would first look at their manager for permission to answer and would never do so until they had received the obligatory nod. In a business where I have been hired to consult on CRM issues the General Manager could not understand how this lack of empowerment was hindering the hotel’s relationship with customers.

I found an interesting article by Mike McDaniel on Ezine discussing this exact problem:
http://ezinearticles.com/?Empower-Employees-to-Keep-Customers-Happy&id=1614535

I’d be interested to hear stories from readers related to hotel staff providing poor service due to lack of empowerment. Especially stories related to hotel booking systems and CRM systems.