After adding up the the costs of advertising, marketing, and sales people used to attract new customers, it is easy to see that obtaining new customers costs much more than keeping your current guests loyal to your hotel. Surveys have proven that the top reason customers stop returning to a hotel is because they feel unappreciated. To reduce costs hotel operators should prioritize hotel brand loyalty and keeping current guests happy.

1. Leave a lasting impression. Show your guests how much you appreciate their business with a parting gift or even a sincere “thank you.” A few ideas to impress hotel guests: give them a small box of truffles or a jar of jam with your logo as a memorable personalized thank you. To take the hospitality one step further, handwrite a thank you note that is custom-made especially to your guest.
2. Keep in touch. Make sure your guests remember who you are and remember their stay, even if they only visit once. Throughout the year, send a letter or email that keeps them updated on the latest activities and news at your establishment and tell them how much you look forward to their next stay with you. Create a social media presence for your hotel by making updates, running contests, and posting pictures on various social media platforms, such as Facebook, Twitter, or LinkedIn.
3. Reward their loyalty with exclusive deals. Design special packages or deals just for your guests that are a part of your loyalty program. This displays your appreciation for their loyalty, encouraging them to choose to stay with you rather than your competitors in the future.
4. Ask for feedback. Don’t take your guests for granted just because they stay with your hotel regularly – more than likely, they have feedback to give you. When you receive feedback from your guests, be sure to fix any issues they have observed as quickly as possible. Negative feedback creates an opportunity for you to exceed expectations, show your dedication to your guests, and let them know that you do care about their opinion. Promote face-to-face interaction – start a casual conversation with a guest, and then ask if they enjoyed their stay and what they would like to see improved for their next visit. When there is an issue, keep your guest updated and inform them when it has been resolved. Be sure to check websites like TripAdvisor.com as well for reviews, good or bad.
5. Train your staff. Your staff should have the appropriate training and tools in order to provide the level of service that your guests expect and deserve. Your staff should be able to recognize loyal guests and handle any complaints that may come their way. By having confidence and authority, your staff will appear more professional, leading to more trust from your guests. If your staff is able to resolve a negative situation without your assistance, that’s even better.

The hospitality industry revolves around hotel guest loyalty, so when you see an opportunity to wow your guest, take advantage – it could make the difference between that guest returning or choosing to stay somewhere else. Source1 Purchasing is a leading strategic supply chain management group focused operational efficiencies for the hospitality industry in order to keep your business running smoothly and helping you keep guests coming back time and time again.

A recent article by USA Today discusses an alternative to hotel room service: groceries. The popularity of grocery delivery services is increasing significantly among extended-stay hotels, but even other types of hotel properties are embracing the concept rather than continuing the use of traditional room service. Moreover, as the demand for healthier food options rises, more hoteliers are offering delivery services that include healthy meals or snacks for sale.

“It’s not the home kitchen, but gets guests closer to a home-like experience, which is what road-weary travelers crave,” says Maryam Wehe, senior vice president of Applied Predictive Technologies, which does consulting for hotels. “While travelers are just as time-starved as ever, they are increasingly health-conscious while on the go. Through healthy food delivery options, hotels are taking another step to bring the comforts and lifestyle of home to guests.” 

The article also includes this more specific example of this new hotel trend:

“Affinia Hotels, a boutique hotel chain with properties in New York, recently announced a partnership with FreshDirect, a New York City-based grocery delivery service, to deliver ready-to-make meals to guests. There’s a Business Kit and a Healthy Kit, each with such items as fruit, vegetables, Greek yogurt, chips, salsa and cookies. The kits also have four-minute meals such as lemon-dill salmon, which can be heated in a microwave in each room’s kitchenette. The kits can be ordered in advance through Affinia’s online e-concierge service.”

Senior Vice President of brand management for Affinia Hotels Lisa Zandee states that guests enjoy the hotel grocery delivery service because it allows more variety that otherwise wouldn’t be available through room service and a hotel room mini bar.

In addition to convenience for guests, phasing out room service can benefit hotels due to their costliness to run versus the low revenue they generate.

The article states “room service revenue has dropped 9.5% from 2007 to 2012, according to PKF Hospitality Research,” showing that the service is becoming less significant and more costly over time.

As you move to a new food and beverage trend for your hotel, it’s essential to explore your supplier options to ensure low food and beverage costs. As a top supply chain management group, Source1 Purchasing is focused on cost management, savings and operational efficiencies for the hospitality industry, offering hotel operators with the best purchasing options to fit their needs.

The most consistent factor that goes into continuous guest loyalty is perceived quality. According to recent studies, guest perception of the value provided by hotel management is down in the United States. Here we’ve provided you with a list of what guests value most in order to help you better understand what drives value, how guest preferences have changed over the past year, and how to improve hotel guest satisfaction.

Adequate Room Lighting: It is fairly simple to get hotel room lighting right – or wrong. Lights that don’t work correctly are obvious, disappointing, and even more aggravating, which in turn drops value perceptions. When a guest complains about lighting, it should be fixed immediately, not ignored.

Internet Access: In 2012, a USA Today survey revealed that the favorite hotel amenity of guests was Wi-Fi over everything else. Now more than ever, guests still place a high value on Internet access making it an important part of a brand’s value proposition. When determining if your Internet offering will meet guest expectations, consider the following:

• Does it work?
• What is the bandwidth like?
• How does a guest access the Internet?
• Is it free?

According to a June 2013 survey by Hotels.com, 67 percent of travelers felt that in-room Wi-Fi was the most important hotel service they look for when booking. Many guests are able and want to be able to access the Internet through their tablets and smartphones, however, one-third of U.S. hotels do not have free Wi-Fi available to them.

Comfortable Furniture: Guest comfort establishes a standard for guest value. As competition among hotel operators increases, guests have more opportunities to travel and compare services and offerings. Hoteliers who decided to put off renovations a few year back should now consider making those changes in order to keep up with competitors. Even today with what all guests expect as far as complimentary amenities, this fact remains the same, the focal point of guest satisfaction is consistently a comfortable place to sleep for a reasonable price.

Top-Notch Service: Exceptional service is always a necessity in the hospitality industry. This aspect not only accounts for a 10-15 percent improvement in loyalty, but that outstanding service also stimulates a guest’s emotional experience, positively affecting their perceived value.

When it comes to improving value for price, you should focus on delivering the things that improve value perceptions. From this, we have learned that guests value Internet and lighting that works correctly, a comfortable place to rest, and excellent service. However, it is also important to remember that guest preferences change regularly and you should continue to communicate with your guests, and research hotel Industry trends to ensure you’re adapting to these changes.

Rather than having to cut rates to improve hotel guest satisfaction, hotel operators may consider adopting better purchasing practices to reduce operational costs. Source1 Purchasing is a leading strategic supply chain management group focused on cost management, savings and operational efficiencies for the hospitality industry.

Many qualities factor into making a sales person exceptional at their job. Some of these qualities include, but are not limited to, a high energy level, personal motivation, and a pleasing personality, but even if someone doesn’t naturally embody all these traits, there are opportunities for a person to become better at selling. The following are just a few skills that are essential to improving a person’s ability to become great at the business of selling for hotels and resorts. Encouraging and teaching your staff to intentionally focus on each of these customer service skills can significantly increase their ability to make a sale:

1. Listen. Listening more and talking less radiates intelligence. Be sure your staff asks a few key questions, and then allows the guest to speak and complete his or her thought; try not to oversell and let the customer do the talking.
2. Features. As long as the features of your property can be seen as valuable to your prospective customer, then it’s okay to discuss them with your prospects. It would be pointless for a sales person to go on about your vast parking lot if a guest will be flying in. Make sure they take the time to learn the needs of your prospects, decide what features would be most important to them, and then continue to discuss the benefits and advantages of those features.
3. Image. Your hotel’s image is formed by not only the building and its decor, but by your staff and the atmosphere created by them as hosts; by their looks, voice and ability to communicate effectively as well. An enthusiastic tone of voice is a vital attribute of outstanding sales people. It is also helpful to know the right thing to say and how to say it. As well, all staff should be clean and look professional.
4. Motivation. Another trait of great sales people is the ability to successfully motivate others. In the business of selling, it is important to motivate the prospective buyer to make the purchase. Be sure to inform your hotel sales staff of the appropriate way to encourage the prospective buyer to make the purchase.
5. Get Noticed. Sales people must be visible in the business community. As a hotel operator, you should encourage your sales staff to be active in the community and join groups, give talks to groups, be quoted in the newspapers and make an appearance at important and relative business events. People are more likely to do business with someone who is reputable.
6. Improve Communication Skills. Hotel sales staff should learn to articulate properly, and use correct grammar. Slang expressions and filler words, such as “umm”, “like”, and “ya know” should be avoided. By speaking correctly, not only will your staff be seen as intelligent, but their sales strategies will improve.
7. Be Knowledgeable. Sales people should be knowledgeable of the hotel property, your competition, and the needs of the prospective buyers.
8. Emit Confidence. The sales person’s confidence will translate into  the buyers’ confidence. If your staff shows a lack of confidence in themselves or your hotel it can lead to a reduction in sales.

How do you train your sales staff to interact with hotel guests and prospects? Do you have any tips on how to improve hotel sales?

Starting with a smart design plan can lead to cost reduction and maximum return on investment for hoteliers now and in the future. By implementing the following tips during the construction phase of your business, you will find a positive impact in the bottom line of your hotel operations.

Water Management Lowers Costs

Hotel designs that start with a consistent plumbing location minimizes the chances for future problems. Depending on the size of your establishment, low flow faucets can potentially save your hotel 1,000 gallons of water a day on average. Low flow faucets are specifically designed to mix air and water in a way that minimizes consumption while providing the guest the feeling of high volume flow. Installing these will allow you to reduce water costs while still keeping your guests happy.

Geographic Design Methods

A smart design is flexible to account for various locations. For example, winter is cold in North Dakota, so if you modified your building materials at your North Dakota hotel site to use 2” x 6” studs for exterior walls to provide more room for insulation to keep the Northern winter cold at bay, the quality of the thicker insulation will result in a slightly higher build cost but a 2.8 percent reduction in energy that is required to heat the property. Considering regional requirements and factors within the context of smart design and operational efficiency can result in beneficial changes in just one place or for all locations.

LED Lighting Saves on Energy

LEDs represent a smart design choice that saves hoteliers during construction and make up about 20 percent of the electricity costs that come with traditional lighting. LED lights use 80 percent less energy than incandescent bulbs, last five times as long as fluorescents, do not require special disposal due to hazardous chemicals (like neon, lead powder, mercury, etc.), and without glass coverings, there are no trapped insects to clean.

Smart design results in savings that go directly to the bottom line. However, to achieve the benefits, you must take some chances, plan for changes before construction and properly execute those plans during the build. Source1 can help you keep your operations efficient by providing you with suppliers to meet all of your purchasing and procurement needs.

With sustainability becoming increasingly important in today’s society, restaurant and hotel operators are searching for ways to go greener. Because restaurants are in the business of creating and delivering food to customers, they have a greater opportunity to become sustainable through the ingredients in their meals and the technology that is used to prepare that food. To begin towards a more sustainable establishment, restaurants and hotels can include more local vendors in their purchasing plan, limit the amount of waste that is discarded, and adopt eco-friendly technology solutions.

Operators can take steps towards becoming more sustainable with the following tips for hotel and restaurant owners:

1. Review your restaurant or hotel purchasing program for local vendor options

Restaurants go through a ton of food and produce daily, and it can be tempting to obtain your food products from as affordable a source as possible. However, you can create a more sustainable restaurant by purchasing the bulk of your ingredients from local farmers and suppliers. By doing so, you are supporting your local economy and making sure that crops and other goods in your area are being used rather than being wasted. Plus, by purchasing your ingredients locally, you are ensuring the freshness of your food as well as reducing the time, energy and money required to transport them to your restaurant. If you’d like, may could even grow some of your own ingredients – start your own herb or vegetable garden to supply yourself with some of the ingredients used in your recipes.

2. Be aware of your waste – from smarter inventory management to a better plan for disposal

At the end of the day at your business, you always end up with a lot of waste, whether its food leftover by customers, garbage from everyday use, or extra food from over preparation or inventory that is at or beyond expiration. Rather than simply tossing out waste in garbage bags, you can improve your waste-management program efficiency by doing research and making strategic decisions on where the extra food and waste should go. Consider composting kitchen and produce waste so that you end up with rich fertilizer for soil that you could use in your own vegetable and herd garden. You should also be sure to always recycle all appropriate glass, aluminum, paper, cardboard and items. After doing this, you will certainly still be left with garbage at the end of the day that should be taken to the dump, but you have reduced how much waste is being put into the ground. Local food banks may have donation guidelines, so check with your local food bank organization for any additional guidelines, and any limits on their capacity to accept raw agricultural products, especially those which may require refrigeration. To find a food bank donation center near you, check with the U.S. Department of Housing and Urban Development, or read here how a Red Lobster in Whitehall, PA uses Food Donation Connection, in partnership with National Restaurant Association, to help figure out the do’s and don’ts of donating restaurant leftovers.

3. Use eco-friendly products

Many products that are used in restaurants contain harsh chemicals, particularly for cleaning up. Rather than using these chemicals, opt for products that are more environmentally safe, like all natural or organic cleaning products. These will properly clean your establishment without adding more toxic chemicals to the earth. Aside from cleaning, there are many other areas in your restaurant that can benefit from the use of eco-friendly items. Strategic sourcing of products and appliances that actually help reduce energy and water costs may prove to be beneficial for your establishment. For example, you could use recycled paper for your menus and napkins and compact fluorescent light bulbs in your light fixtures. You can even really go green by ditching all print advertising and embracing the idea of social media marketing for your advertising campaigns.

These are only a few examples of green practices in hotels and restaurants. What steps have you taken to improve sustainability at your restaurant? Source1 Purchasing provides you with the latest tips, trends, and news of the food and beverage industry to ensure your business is running as efficiently as possible.

From upgrading computer systems to equipment maintenance, restaurant costs have a tendency to add up quickly. So, what is the best way to supply a kitchen with the freshest, most delicious and most sustainable ingredients at the lowest cost?

Begin with your delivery area. Meet with your vendors and ask each one to build current order guides listing only the product that you purchase from them. Create a spreadsheet of these items for your ordering manager. Include the amount of the item that should be on the shelf, in the kitchen, and in the front of the house. This will help to prevent ordering more than you need.

Keep your inventory tight. Hang inventory sheets on a clipboard in a specified area. When the delivery person brings in the product, your manager can take this clipboard and check the inventory order sheet against the invoice, to insure that all of the correct product has been delivered, prices are accurate and that you are getting exactly what you are paying for.

Keep an industrial foodservice floor scale in your kitchen prep area to weigh in any product you buy by the pound. Weighing deliveries can potentially save you thousands of dollars on lost product.

Make sure your meats, seafood and other most expensive products are delivered as early as possible. These costly items should only be checked in by your GM or kitchen manager for freshness.

Establish a standard delivery time. You should stress to your salesperson that not delivering your shipment within your specified delivery times will result in loss of business for them. Setting specified delivery times emphasizes the importance of receiving product to both your delivery person and to your management staff.

Many of the reasons that restaurant costs can increase are that simple procedures get overlooked. It’s important to utilize restaurant-wide, cost-insurable standards across to help reduce your purchasing costs. Source1 Purchasing is a leading strategic supply chain management group focused on cost management, savings and operational efficiencies for your industry. To learn more about the Source1 Program and how it can benefit your business, visit our website at www.Source1Purchasing.com.

As of recently, many hoteliers are opting to remove room service from their establishments to be replaced by a new food and beverage concept – a pantry market in the lobby.

Many media outlets have been criticizing the loss of the traditional guest service in hotels, most showcasing the data behind the change that show the revenue loss associated with the luxury of having $30 pancakes while you relax in your bed.

However, according to recent studies, hotel room service revenue as a percent of total hotel revenue in the United States has been declining since 2007. In 2012, hotels reporting room service revenue averaged contributions of 1.22 percent of total hotel revenue, compared to 1.52 percent in 2007.

In terms of hotel room service revenue in dollars per occupied room, 2012 saw amounts around $3.25, which is down from $4.33 in 2007.

The Hilton’s The Herb N’ Kitchen concept offers grab-and-go breakfast, lunch and dinner options as well as made-to-order items such as salads, pizzas and hot items. Hotels can choose to customize the setup, including buffets and/or carryout items.

Operators are cutting hotel luxury amenities such as business centers, minibars, bellhops, doormen and even traditional front desks for checking in across the U.S. For example, Yotel New York in Midtown Manhattan asks guests to check themselves in at kiosks in the hotel’s “Ground Control.” If their rooms aren’t ready, Yotel’s guests check their suitcases with a robotic baggage storage system. One main reason behind changes like these is cost control. For example, by eliminating room service, which doesn’t result in much revenue for hotels in the first place, the Hilton Midtown will cut 55 workers from its staff. In fact, room service only accounts for about 1.2 percent of the industry’s revenues. Not many people are willing to pay $30 for a hamburger that is delivered to their hotel room on a tray – instead, they would prefer to have free WiFi, free breakfast, or free parking.

The 93-room Quail Lodge, a golf resort in Carmel, California, just reopened after a three-year renovation and as introduced a reduction of low-revenue extras while instead offering those highly requested perks. Who needs hotel room service, bellhops, and doormen when you can have free breakfast, Internet, and parking?

Do you prefer to offer the basics at your hotel or would you rather have all of the extras available? Source1 Purchasing has customized contracts with a variety of suppliers so that you can create a successful pantry market for your property. Visit our website at www.Source1Purchasing.com to learn more about the Source1 Program and how it can benefit your hotel.

As a hotel manager, your business is built on serving others and continuing to satisfy your guests. With technology being so important in today’s society, keeping communication with your customers through their preferred technological method is sure to improve the guest experience. Those who receive phone calls from businesses tend to feel annoyed, as if the call is bothersome, so why not communicate via text messaging? Text messages are quick, simple, and convenient, and most mobile users simply prefer it to other forms of communication. By implementing the use of text messaging when connecting with your guests, you’re improving guest services in seven important ways:

1. Give guests a real-time connection and become more reputable. Texting your guests is an action that exceeds expectations and allows your customers to send their concerns and questions to the concierge or guest services via text and receive a reply.
2. Increase the number of bookings by allowing guests to text reservations while relaxing at an on-site spa or restaurant.
3. Reduce the number of absentees by delivering reminder texts about appointments and reservations. Many industries, such as airlines, have already incorporated this strategy into their operations to ensure travelers don’t miss their flights.
4. Be a mobile information resource for local events. Send a text message to inform guests about upcoming shows, nearby attractions and experiences in areas near the city in which your establishment is located.
5. Provide a feeling of safety and security among guests. When an emergency takes place, send an alert text message to warn your guests. Because of this safety feature, guests will more than likely prefer your establishment to competitors.
6. Boost customer service by texting guests when their tables or rooms are ready, room service has arrived, or rooms have been cleaned. You can also allow customers to respond with questions about check-in or to let you know if they are running behind schedule.
7. Send special offers and allow your guests to respond to the text with a request to book or reserve.

How have you gone above and beyond to improve guest satisfaction at your place of business? For more hotel technology tips, tricks, news, and trends, take a look at our other blog posts on source1purchasing.com.