Hotel news | KRG Hospitality

The word "good" in a vintage script, superimposed over the image of a pint on a bar top.

October 24, 2025by David Klemt David Klemt No Comments

Good: Trust & Comfort Build Loyalty

Good: Trust & Comfort Build Loyalty

by David Klemt

Cool grabs attention because it’s magnetic and buzzworthy. But if you want people to come back and bring others with them, cool isn’t enough.

You need to be good.

However, when I say “good” I’m not talking about being nice, or offering competent service. This is hospitality; those are (or damn well should be) a given.

In hospitality, in this context, good is about emotional safety, reliability, and the kind of consistency that turns a first-time guest into a regular.

The best hospitality brands do more than just impress, they reassure.

The Eight Traits of Good

According to cross-cultural psychology research, eight traits consistently define what people perceive as “good” in others. We can apply these traits to brands as well.

I shared them earlier this year:

Agreeable
Calm
Conforming
Conscientious
Secure
Traditional
Universalistic
Warm

If cool is what gets guests in the door, good is what makes them feel welcome, seen, and safe enough to stick around.

Agreeable: Cooperative and Empathetic

Just as you can pick up on tension within moments of stepping inside a given venue, you can feel it when a venue is easygoing.

The team’s on the same page. The energy is collaborative. There’s a sense of mutual respect between staff and guests, and between team members and leadership.

Notably, however, being agreeable in hospitality isn’t about people-pleasing. In reality, it’s about creating a culture of empathy and professionalism.

When you step into such a venue you notice that hospitality isn’t forced, it’s practiced.

Calm: Clear-Headed Under Pressure

Calm hospitality environments feel better. They’re emotionally steady.

The pace may be fast, but the energy is measured, controlled, and confident. Guests pick up on this instantly, and so do team members.

When your culture is calm, you and your team don’t just survive a busy night, you all come together, thrive, and make it look easy.

Conforming: Reliable and Predictable (In the Best Way)

Let’s redefine “conforming.” When I use it in this context, I’m not talking about suppressing creativity. Instead, conformity is an alignment with expectations.

Guests return when they know what to expect. They come back when they trust that the experience will meet the impeccable standard you and your team have set every time.

It’s the culmination of onboarding, continuous training, non-negotiable SOPs, structure, and consistency.

Conformity, in this way, isn’t boring, it’s dependable.

Conscientious: Detailed and Purpose-Driven

Conscientious brands care about the little things. They’re organized, thoughtful, and consistent, and that shows up every shift in a multitude of ways.

It’s how the bar team garnishes each drink. How clean the bathrooms are kept. How team members communicate with each other, leadership, and guests throughout their shifts.

It comes through in your consideration of each and every touch point that guides the guest journey.

Conscientiousness builds trust. You’re delivering on the promise to your guests and your team that you don’t cut corners.

Secure: Safe, Seen, and Stable

Safety in hospitality isn’t just physical, it’s emotional.

Guests want to know that you’re going to take care of them because you respect them. You respect their decision to visit your venue, spend their time with you and your team, and spend their money inside your business.

Likewise, your team members want to feel protected, heard, supported, and empowered. To provide an example, I’ve made it clear more than once in articles and on the Bar Hacks podcast that I expect leadership to support team members. No, the guest isn’t always right. “The customer is always right” isn’t just an abused misquote, it’s an outdated sentiment any way you slice it.

I expect leaders to step in and handle all guest complaints; that’s a crucial part of the job. Do you want your team to believe in your concept? They had better be given proof that they should believe in leadership.

Security is built through:

clear boundaries;
steady leadership;
well-trained staff;
staff that feels cared for and respected; and
real accountability, regardless of role.

If your guests feel nervous or confused—and they will if that’s how your team feels—you’ve lost them.

Traditional: Grounded, Not Outdated

Tradition gets a bad rap in modern branding. Traditional values—community, respect, attention to ritual—are deeply comforting.

When used well, tradition creates familiarity and nostalgia, particularly at neighborhood spots, legacy venues, or family-forward brands.

And even modern, forward-thinking spots can lean on traditional service values without feeling dated.

Universalistic: Fair, Equal, and Consistent

This is where your hospitality values shine.

Universalistic brands don’t treat some guests better than others. They don’t ignore or dismiss certain demographics.

A universalistic hospitality brand operates from a belief that everyone deserves a great experience.

That belief, that value, creates equity. Equity creates trust.

Once you’ve earned that trust, you need to commit to keeping it. As the saying goes, “Trust takes years to build, seconds to break, and forever to repair.”

Warm: Friendly, Kind, and Human

Warmth is the final, and arguably most important, “good” trait.

Warmth shows up in tone, body language, follow-through, and how guests are made to feel the moment they walk in.

Anyone can serve someone. Warmth is what makes someone feel welcome.

Why “Good” Hospitality Brands Last

Good is often invisible. It doesn’t always get the hype but it builds return visits.

Goodness is what builds reputation, earns word-of-mouth referrals, and retains guests and team members.

Good brands become a reliable part of someone’s routine. They’re the go-to when friends visit from out of town. The default when someone asks, “Where should we go tonight?” They’re the first venue that pops into someone’s head when they think “date night.”

Reflection Questions for Operators

Where does your team already show strength in “good” traits?
Which of these eight traits does your guest journey express naturally?
Which ones feel like gaps, and how could they be reinforced operationally?
Are your brand values visible in your culture and your service, or are they just words on a website and inside an employee manual?

Up Next: Quantifying Excellence

In the final part of this series, we’ll unpack what it means to be seen as excellent, and how that perception drives brand equity, team pride, and long-term influence.

Because once you’ve nailed cool and good, excellence is what turns your brand into a benchmark.

Image: Canva

The word "cool" in a vintage script, superimposed over the image of a pint on a bar top.

October 17, 2025by David Klemt David Klemt No Comments

Cool: Magnetism Matters in Hospitality

Cool: Magnetism Matters in Hospitality

by David Klemt

We all know what it feels like to walk into a cool space. The room hums, the lighting hits just right. The music, the people, the energy…it’s magnetic.

But when we talk about cool in hospitality, too often we’re referring to aesthetic alone: the vibe, the lighting, and the playlist, among other details.

The truth? Cool isn’t just visual. And it’s not trend-chasing.

Cool is a collection of behavioral traits. When those traits are intentional, the perception of cool becomes strategic. In turn, that magnetism becomes a strategic element.

The Six Traits of Cool

Cool can feel elusive, but it’s not mystical.

Cross-cultural research has identified six traits that people consistently associate with coolness.

They are:

Extraverted
Hedonistic
Powerful
Adventurous
Open
Autonomous

Let’s break them down, and apply them to hospitality.

Extraverted: Show Up and Stand Out

Cool brands don’t hide in the background.

They communicate clearly, loudly, and often. They show up on social and in the community. Cool brands own their tone.

However, they’re not loud for the sake of making noise. It means that they own the room without apology.

Think confident service teams, guest-forward experiences, and spaces designed for connection rather than just consumption.

Hedonistic: Make People Feel Good

Let’s kill the negative spin on the word “hedonistic” right from Jump Street.

In this context, it simply means “pleasure-oriented.”

Cool brands create experiences that feel good. Not just pleasant, memorable.

Drinks that hit flavor and presentation. Lighting that makes everyone look and feel attractive. Flow that feels frictionless.

This is about sensory impact. It’s why people will choose your place even if another spot has better prices or faster service.

Guests aren’t really buying food or drink; they can make either at home. They’re buying the feeling you, your team, and your venue gives them. In reality, they’re buying your cool, expecting it to reflect onto them.

Powerful: Influence, Not Ego

Power in a hospitality setting doesn’t mean dominating the scene.

For a hospitality brand, power means having influence. That influence makes guests feel like they’re somewhere that matters.

Power shows up when:

your venue sets trends instead of following them;
your team leads with confidence and autonomy; and
people talk about your space and brand when you’re not in the room.

A powerful brand doesn’t have to scream, it simply can’t be ignored.

Take the phrase, “real wealth doesn’t scream, it whispers.” Now, replace “wealth” with “coolness.” Do you believe someone when they loudly tell you that they’re cool? Or do you sense when they communicate it without having to say a word?

Adventurous: Show Some Edge

Cool brands take risks.

Try new menu items, new event formats, new collaborations. Don’t wait for permission, just do it.

However, keep in mind that risk and adventure don’t necessarily require recklessness. They simply require you to indicate, with confidence, that you’re willing to experiment publicly.

This could look like a pop-up collab with a neighboring venue. Hosting an event, a person, or a brand that’s never been seen or experienced in your market. Reinventing a tired night of the week with a totally new promotion.

Predictability is comforting, but adventure creates buzz. Be the buzz.

Open: Let the Culture In

Being open means staying curious to new ideas, influences, voices, and formats.

Guests notice when a brand is receptive, diverse, and dynamic. They reward that with their loyalty.

Openness in hospitality looks like:

Welcoming feedback, and acting on it.
Hiring for perspective rather than just experience.
Rotating menus or programming to reflect seasonality and community.

Cool doesn’t look the same in every city or concept. Openness helps you localize your identity without diluting your brand.

Autonomous: Lead with Vision, Not Imitation

The coolest brands feel like they were born fully formed, even if we know the reality is messier and took years to perfect.

Why? Because they make decisions as themselves, not in response to what others are doing.

Autonomy shows up when your voice and values are clear across every touch point. When you stay consistent, even when competitors pivot. Your autonomy comes through when finally figure out what you’re not trying to be.

Hospitality is full of sameness. Cool stands out when it’s driven by clarity.

Why Cool Still Matters

Cool isn’t shallow, and it isn’t fleeting. Not when it’s rooted in these six traits.

Cool matters because it creates curiosity, conversation, and connection.

It’s what gets people to check you out, to take a risk and try you. That decision to try you is the first step to becoming a loyal guest, team member, or partner.

But remember that while cool can grab people’s attention and create energy, it’s not capable of creating sustainability on its own. You need systems in place to stabilize and scale.

A Few Reflection Questions

What part of your guest experience feels truly cool right now?
What parts feel tired, safe, or imitative?
Which one of the six traits comes to your concept most naturally?
Which one could you amplify intentionally this month?

Next Up: Quantifying “Good”

In the next installment, we’ll talk about the eight traits that make a brand feel good, the kind of hospitality that builds trust, reputation, and retention.

Until then, stay cool.

Image: Canva

"Good. Cool. Excellent." Retro baseball jersey-style font superimposed over the image of a brick wall, bar top, and pint of beer

October 10, 2025by David Klemt David Klemt No Comments

Cool, Good, Excellent: 19 Defining Traits

Cool, Good, Excellent: 19 Defining Traits

by David Klemt

Cool gets people through your doors. Good impresses guests and keeps them coming back. Excellence inspires people to talk about you.

We throw around words like “cool,” “good,” and “excellent” all the time in this industry.

“Cool new spot.” “Good service.” “Excellent experience.”

But what do these terms actually mean when it comes to hospitality brands and strategy? More importantly, what do they mean to your guests, your team, and your community?

The truth is that perception is everything.

Cool. Good. Excellent. These aren’t just vibes, they’re measurable. If you’re not intentional about which of these traits your brand is projecting, the market will decide for you.

Let’s dig into the 19 traits that shape how your concept is perceived, trusted, and remembered.

Cool: The Magnetism Factor

Cool is what gets people talking. It draws guests in through a mix of confidence, curiosity, and charisma.

Researchers have identified six traits that consistently define cool across a multitude of cultures:

Extraverted: Social, talkative, and expressive.
Hedonistic: Oriented toward pleasure, excitement, and sensory experience.
Powerful: Assertive, influential, and bold.
Adventurous: Willing to take risks, and try new things.
Open: Curious, flexible, and adaptive.
Autonomous: Independent, self-driven, and unconcerned with conformity.

Sound familiar? These are the brands that pop off on social. The ones that get the influencer love, and that make guests feel seen.

You probably thought of a cool brand or two when you started reading this article. Hopefully, one was your own.

That said, there’s a catch: cool alone doesn’t carry a brand. It grabs attention, but without something deeper underneath, people move on. And they move on fast.

Good: The Retention Engine

If cool gets people through the door, good is what keeps them there.

The “good” brand traits are quieter, and that’s the point. They’re what make a concept feel dependable, thoughtful, and rooted.

There are eight of them:

Agreeable: Cooperative, empathetic, easy to work with, and accommodating.
Calm: Emotionally stable, composed, and clear-headed.
Conforming: Consistent, reliable, and willing to follow a structure.
Conscientious: Responsible, organized, and focused on detail.
Secure: Trustworthy, steady, and emotionally and physically safe.
Traditional: Grounded in shared values and norms.
Universalistic: Treats all people equally and fairly.
Warm: Friendly, kind, and welcoming.

Good brands don’t always make headlines, but they build habits. They’re the spots people go back to week after week. The places that make guests feel like regulars before they even are regulars.

Excellence: The Aspiration Layer

Cool is attention. Good is trust. Excellence? That’s respect.

When a brand is seen as excellent, it carries influence. It becomes a reference point, not just for guests but for peers, media, talent, and even future collaborators.

Five traits define excellence (or admirability):

Attractive: Physically appealing, well-designed, and aesthetically impactful/appealing.
Competent: Skilled, knowledgeable, and consistently excellent.
Desirable: Sought after, relevant, and aspirational.
Friendly: Approachable, kind, and human.
Trendy: Aligned with current culture without being performative.

Excellent brands don’t just do things well, they inspire.

19 Traits. One Brand. What’s Your Mix?

Let’s be clear: you don’t need to embody all 19 traits at once. You shouldn’t even try to do so. That would be overwhelming for you, your team, and your guests.

But you do need to know which of these traits your brand currently embodies, and which it should emphasize more intentionally based on where you are in your journey.

Here’s a way to think about it:

Goal 1: Focus your brand’s defining traits.
Goal 2: Boost foot traffic or hype (leverage coolness)
Goal 3: Improve retention, reviews, and culture (leverage goodness)
Goal 4: Increase brand equity, word of mouth, and influence (leverage excellence)

This applies internally, too. Are you hiring for culture fit? Think about the traits your current team exudes.

Launching a new concept? Choose the traits that will define it from Day One.

At KRG Hospitality, our clients undergo an exercise that helps them identify their values. In turn, this exercise helps them identify the traits that will define their brand long before they ever open their doors for the first time.

Final Thought: Brand Perception is a Strategy, Not an Accident

You’ve built a concept. A vibe. A brand. But your guests don’t just see what you say you are, they feel what you are.

They feel cool, or calm, or cared for. They notice when things flow or when they don’t.

Cool gets them in. Good keeps them in. Excellence makes them talk.

Get the balance right, and you’re no longer reacting to perception, you’re shaping it. And in today’s market, that’s one of the most valuable competitive advantages you can have.

To help you strike that balance, I’ve got three deep-dive articles coming over the course of the next three weeks. One about coolness, one about goodness, and, you guessed it, one focused on excellence. Cheers!

Image: Canva

Four neon signs that each say "waiting" in various stages of being lit up

October 1, 2025by krghospitality krghospitality No Comments

The Risk of Waiting Until the New Year

The Risk of Waiting Until the New Year

by Doug Radkey

Sometimes “waiting” means “waiting.” Too often, “waiting” means “…until it’s too late,” or “never”

It’s that time of year again.

The leaves are turning. The holidays are approaching. And everywhere you look, people are starting to say the same thing: “I’ll wait until the new year.”

They’ll wait to start the new habit.
To launch the business.
To fix the broken system that’s draining their energy.

But here’s the uncomfortable truth: waiting is one of the most expensive decisions you’ll ever make.

The Myth of January

It seems that January has become society’s magical “reset” button.

This is when people start going to the gym more (or at all). It’s when aspiring entrepreneurs tell themselves they’ll be ready to start. When current operators say the holiday season is too busy.

It’s funny that somehow the turn of a calendar gives them permission to begin.

But in business—and in hospitality in particular—the market doesn’t wait. The competition doesn’t wait. Staff and guests don’t wait.

And the risk of waiting isn’t just lost time, it’s lost opportunity and lost momentum.

The Numbers Don’t Lie

Let’s look at some numbers.

On October 1st, you still have 25.21% of the year left.
By November 1st, you still have 16.71% left.
And on December 1st, you still have 8.49% left.

That’s not scraps. That’s a quarter, a sixth, or even a full month of your calendar. This is time you’ll never get back once it is gone.

So ask yourself this question: Do you really want to burn that much equity of time waiting for a date on the calendar that somehow gives you permission to move forward?

A Familiar Story

Each year, between October and January, I take calls from operators or aspiring entrepreneurs who tell me the same things.

The aspiring entrepreneur wants to open a new concept.
A year or two after first opening, an operator wants to stabilize their operations.
The veteran operator wants to get their brand’s finances under control.

But here’s the thing: approximately 80% of them admit they already decided to “wait until after the holidays.”

By the time they wait it out until the new year, the real estate they were eyeing is gone. The investor they were courting has moved on and is backing a different concept. Or worse, a new or scaling competitor has beaten them to the punch.

The cost of inaction always shows up, 100% of the time.

The Illusion of Busy

I get it. Society and this industry seem to thrive on being busy. The closer we get to the holidays, the easier it is to convince ourselves there’s no time to think about strategy.

Well, here’s the problem: that “too busy” mindset is often just a shield. It’s easier to stay stuck in the chaos than to step back and do the real work of building clarity.

And yet, that’s exactly what separates operators who crush it from those who drift away toward mediocrity or closure.

The ones who wait? They start the new year months behind or in survival mode.

The ones who act now? They start the new year in control.

That’s why this is called “separation season.”

Momentum Beats Motivation

Motivation is fickle. It spikes in January when gyms are full and the journals or planners are fresh.

By February, it all begins to fade.

Momentum, however, is different. Momentum compounds over time.

When you take action in October, November, or December, you’re not just getting ahead. You’re strategizing and developing the foundations. Or you’re training your systems, your people, and yourself to move forward when the calendar flips.

By the time many are just warming up, you’re already moving at full speed. Think about those positive results.

The Risk of Inaction

Let’s talk about what waiting actually costs you.

Prime Real Estate: The space you’ve been watching doesn’t wait for January. It will be leased by the operator who had the courage to strategize and take action.
Capital: Investors are looking for leaders with confidence and momentum. If you show hesitation, they’ll invest their money elsewhere.
People: Your best staff won’t stick around forever waiting for change. If you don’t build clarity and systems, they’ll leave for a team that already has them in place.

The longer you wait, the steeper the climb is going to be in the new year.

The Power of Now

So, what happens when you act now?

You gain clarity. Strategic playbooks create focus for your concept, your brand, your financials, and your guest experience.
You create momentum. Your systems start running, your people align, and your execution gains speed.
You build confidence. Investors, staff, and even guests can feel when an operator is in control.

Taking action now separates yourself from the 99% who sit back and wait.

From Survival to Legacy

Let’s be clear: This isn’t about working more hours. It isn’t about grinding yourself into burnout before the holidays.

It’s about mindset. Ask yourself:

Do you believe long hours equal nobility or inefficiency?
Do you believe success is about hustle or about alignment?
Do you want to survive another year or build a business that outlasts you?

The entrepreneurs and operators who crush it don’t wait for January.

They strategize now. Build now. Lead now.

Why? Because survival is built on reaction. Legacy is built on clarity.

A Challenge for You

Take a hard look at your calendar.

If you start today, you still have weeks (if not months) to set the stage for the business you want to run next year, and the many years thereafter.

Lay the foundation now. Create your strategies now. Get your systems ready now.

Do it now so that when the new year arrives you’re not scrambling to catch up—you’re already miles ahead.

The Final Word

Hospitality doesn’t wait. Guests don’t wait. The market doesn’t wait.

So why are you waiting?

The real flex is proving that October, November, and December are still full of opportunity.

Because when clarity meets courage and strategy meets execution, you don’t just start the new year strong, you start it by separating yourself from others, and leading the way.

Now is the time. Take action. Build momentum. Create your legacy in hospitality.

Image: Levi Meir Clancy via Unsplash

January 10, 2025by David Klemt David Klemt No Comments

Beau Lake Program Exemplifies Partnerships

The Beau Lake Partnership Program Exemplifies Collaboration

by David Klemt

A creative and collaborative program from a Toronto-based waterside company exemplifies successful hospitality partnerships.

Beau Lake crafts, according to their own website, “the world’s most beautiful paddleboards.” A visit to their website and review of their boards lends credibility to that claim.

In the image below, the Tremblant paddleboard, which features a sophisticated walnut and holly veneer. I encourage you to check out their Malibu and touring-style Rapid boards, as well.

Truly, these are gorgeous paddleboards. their range includes rigid and inflatable boards, along with hardwood, carbon fiber, and hybrid walnut-and-carbon-fiber paddles.

There’s even a pedal boat with a wood cockpit, and a stunning 14-foot electric boat, perfect for cruising a lake serenely.

However, that’s none of that is really the point of this article (and accompanying press release). There’s something else I want operators, particularly those in the hotel and resort spaces, to take away with them.

Well-Crafted Partnerships

Looking back at just the past several years of articles I’ve written for KRG Hospitality, I’ve mentioned partnerships dozens of times.

But what, exactly, do I mean when I say operators should pursue partnerships (or collaborations, if you prefer).

I mean programs like this the Hotel Partnership Program by Beau Lake. That is, well-considered, fully realized partnerships that benefit the parties involved and the operator’s guests.

The key details of Beau Lake’s program are outlined below, in the company’s official press release. For a quick summary, the brand is positioning itself and hotel partners to leverage amenities many hotel guests expect to find, particularly those who seek out upscale and luxury properties. That is, amenities that help them connect with nature, disconnect from technology and their work lives, have a memorable adventure, and partake in wellness activities (for example, paddleboard yoga).

Further, the program offers onsite activations, content generation, and influencer marketing.

That shows potential hotel and resort partners that Beau Lake understands its position in waterside sports, as well as the need to help collaborators market them to guests.

Overall, it shows what operators should look for when seeking partnerships.

Applicable Across the Industry

While the Beau Lake Hotel Partnership Program is focused on luxury hotels and resorts, the lesson here is applicable to bar, restaurant, nightclub, and other hospitality business operators.

A great partnership with the potential to develop into a long-term relationship must form a triangle. The triangle, as you may already know, is considered the strongest geometric shape.

In hospitality, and when talking about partnerships, that triangle connects:

the operator and their business;
the partner’s business; and
the guest.

If it doesn’t benefit all three, the connections aren’t made, and the triangle collapses.

To provide further clarity on successful partnerships, while we offer consulting and coaching, we don’t look at ourselves as consultants. Rather, the KRG Hospitality team views our client relationships as partnerships. We expect the relationships we develop with clients to be the key to collaborating and building long-lasting legacies.

That’s the view that operators should take when seeking out any partnership.

Don’t Fire from the Hip

As an operator, you need to take the time to consider, at more than a surface level:

how you expect your business and guests to benefit from the partnership;
what you’re offering as a benefit to the partner;
how quickly the partnership will be launched;
what methods will be used to promote the partnership; and
what support from the potential partner looks like to you.

While each component (and others) is crucial, that last one deserves plenty of careful consideration. If the partnership centers around a physical product, it’s not good enough to simply receive said product; you need more support than that.

Moreover, reaching out to potential partners without specific details will likely drive them away rather than inspire them to collaborate with you.

I also suggest being receptive to feedback, revisions, and other ideas presented by the potential partner. And, of course, make sure any partnerships are authentic to your brand, and serve your guests.

Below, you’ll find the details of the Beau Lake Hotel Partnership Program. As you’ll see, it’s more than just shipping paddleboards to hotels to rent to guests. In this way, it’s a fantastic example of what hospitality operators should expect when seeking collaborators.

Beau Lake Announces Hotel Partnership Program

Elevating Waterside Luxury Amenities for Hotels and Resorts Around the Globe

(Toronto, Canada) Beau Lake, a luxury waterside brand renowned for its timeless design and mid-century craftsmanship, proudly announces its Hotel Partnership Program. This partnership features curated product collaborations, onsite retail, and offers an exclusive opportunity to redefine the waterside luxury experience for discerning guests around the globe.

Beau Lake’s expertise in blending innovative production with classic nautical aesthetics will transform any waterfront into an immersive extension of high-end hospitality. Through this new program, partner properties will feature exclusive access to Beau Lake’s luxury paddleboards while delivering moments of connection, wellness, and adventure that resonate with the guests’ desire for distinction.

“The hotels we’ve partnered with are synonymous with elegance, and we are honored to extend their brand’s commitment to excellence to the waterfront,” said Brad Ariss, Managing Director at Beau Lake. “Our partnerships and collaborations reflect a shared dedication to crafting unforgettable guest experiences. By integrating Beau Lake’s offerings into lakeside and coastal properties, we create unique opportunities for guests to engage with the serene beauty of their surroundings without the distraction of uneventful plastic toys.

Key Features of the Program:

Bespoke Product Collaborations: Custom paddleboards and surfboards tailored to each property’s aesthetic and guest preferences, including co-branded designs for retail and rental.
Waterside Leisure and Wellness: Beau Lake luxury paddle boards offer an on-brand and curated aesthetic for partners to elevate activities such as yoga on paddleboards, guided tours, and waterfront meditation, seamlessly combining relaxation with nature.
Comarketing Activities: On-site activations to develop programming, influencer marketing and content to generate earned media and attract new audiences.
Retail Solutions: End-to-end e-commerce strategies managed by Beau Lake to drive property-specific sales.

The Hotel Partnership Program is already making waves, with Badrutt’s Palace leading the way alongside notable collaborations with iconic properties worldwide, such as the Montauk Yacht Club and American Beech in New York, Gasparilla Inn in Florida, and Maslina Resort in Croatia.

Beau Lake’s collection redefines the watercraft category, turning functional waterside amenities into elevated experiences that blend art and performance to drive guest loyalty and enhance brand identity. This partnership underscores the brand’s commitment to enriching the art of luxury living, on and off the water.

About Beau Lake

From mid-century pedal boats to the world’s most beautiful paddleboard collection, Beau Lake is a Canadian waterside luxury brand dedicated to elevating the beach experience through timeless design and mid-century craftsmanship. Inspired by nature, their luxury paddleboard collection has featured limited-edition collaborations with Saint Laurent, Ulysse Nardin and Vilebrequin. The brand has since grown their collection of premium beach amenities to include everything from apparel and waterside accessories to classic wooden furniture, custom surfboard and, of course, the finest collection of rigid and inflatable paddleboards on the market.

Beau Lake Affiliate Partners: Avantlink / Skimlinks / Sovrn

Images provided by Beau Lake

Looking to Start, Stabilize, or Scale? Book Below to Setup a 60-Minute Result-Driven Impact Session.

Upscale to luxury hotel room image from Canva

October 11, 2024by David Klemt David Klemt No Comments

Hotel Total + Guest Revenue Management

Hotel Total + Guest Revenue Management: A Comprehensive Approach

by Doug Radkey

In the evolving landscape of hotel revenue management, the focus on traditional metrics like RevPAR (Revenue Per Available Room) and ADR (Average Daily Rate) is shifting.

While these metrics have been the gold standard for assessing a hotel’s performance, they no longer provide a complete picture.

Why, you ask? Because guest expectations and spending patterns have evolved. Hotels are not just places to stay; they are multi-faceted destinations offering a variety of services, such as dining, spa treatments, recreational activities, events, and more.

RevPAR and ADR measure performance based solely on room occupancy and rates, which overlooks the revenue generated from these additional services. They do not account for on-premise spending by guests on activities, food and beverage, wellness services, or other ancillary revenue streams that can impact a hotel’s overall profitability significantly.

Further, these traditional metrics fail to capture the qualitative aspects of the guest experience, such as personalized services, guest satisfaction, and long-term loyalty, all of which play a crucial role in a hotel’s success.

In essence, relying exclusively on RevPAR and ADR can lead to a narrow, and potentially misleading, view of a hotel’s financial health, missing out on opportunities to build a true legacy within this industry.

Where do we go from here, then? Enter Total Revenue Management (TRM) and Revenue Per Available Guest (RevPAG). These “new” metrics offer a more holistic view of a hotel’s financial health, moving beyond just room revenue to encompass the total guest experience, and the entire property’s revenue potential.

Understanding Total Revenue Management (TRM)

Total Revenue Management is a modernized approach that measures and maximizes revenue across all revenue streams within a hotel.

This includes rooms, food and beverage, spa services, recreational activities, and any other revenue-generating departments. TRM is about synchronizing and optimizing these various revenue streams to elevate the hotel’s total profit margin.

Let’s put this into perspective. Picture yourself as a hotel operator in Las Vegas. Maybe there is an instance where you have a group of high-rolling guests staying at your casino hotel/resort. Instead of charging them for their rooms, you decide to comp their stay entirely.

To some, giving away a free room in a city where occupancy rates are crucial might seem like a risky move. But you know that the cost of the room will be a drop in the bucket compared to the potential revenue they could generate on the casino floor, and on-site bar and restaurant. These guests end up spending hours at the tables and slot machines, contributing far more to the bottom line than a single night’s room rate ever could.

But it’s not just about the high rollers. What about off-peak times, where you have to get creative to keep the revenue flowing?

Perhaps you offer discounted spa treatments to your guests on weekdays when the hotel isn’t as busy. To your surprise, these guests who wouldn’t typically splurge on spa services took advantage of the discounted rates. This not only increases your spa revenue during slow periods but also enhances the overall guest experience, turning casual visitors into loyal guests.

These experiences are just two quick samples showcasing how maximizing revenue isn’t about charging for every service; it’s about understanding the broader picture, and making strategic decisions that drive total revenue for your property, every single day.

The framework of TRM is all about understanding the affiliation of each revenue stream available within your property. By taking a comprehensive view of the property’s revenue potential, you can create packages and services that encourage spending across all departments, not just the rooms.

The 5 Advantages of Total Revenue Management

It’s safe to say that implementing TRM can lead to a more robust and modern operation that benefits your hotel in several key areas:

Revenue Growth: TRM goes beyond just room revenue. By focusing on every revenue stream—be it dining, spa services, or recreational activities—TRM maximizes your hotel’s overall revenue potential. This comprehensive approach ensures that every aspect of the guest experience contributes to the bottom line, leading to a more diversified and stable revenue base.
Enhanced Asset Utilization: TRM encourages the optimal use of all hotel facilities, from restaurants to event spaces and wellness centers. By identifying underutilized assets and creating strategies to boost their usage, such as offering special packages or promotions, your hotel can increase its profitability significantly. This not only drives revenue but also elevates the guest experience by offering more value-added services.
Streamlined Operational Costs: A key benefit of TRM is the ability to streamline operations across various departments. Leveraging data and cross-departmental insights improves your hotel’s resource allocation, waste reduction, and implementation of more cost-effective practices. This leads to lower operational costs and increased profit margins, allowing your hotel to reinvest in areas that perhaps enhance the guest experience.
Unified Team Effort: TRM fosters a cohesive workforce by aligning all departments with a common goal of maximizing total revenue. When the front desk, housekeeping, food and beverage, and other teams are all working towards the same objectives, it leads to several improvements. These include enhanced productivity, improved guest satisfaction, and a seamless experience for guests. This unified approach creates a culture where everyone understands how their role impacts your hotel’s success.
Boosted Efficiency and Productivity: Implementing TRM encourages different departments to collaborate more effectively, streamlining processes and reducing redundancies. By focusing on total revenue rather than isolated departmental metrics, your hotel can create a more dynamic and responsive operation. This increased efficiency not only enhances the guest experience, it also drives higher employee satisfaction by creating a more organized and purpose-driven work environment.

Implementing Total Revenue Management

The first step to implementing TRM is to invest in integrated Property Management Systems (PMS) such as Mews, and Revenue Management Systems (RMS) such as Atomize. These systems are essential for tracking, reporting, and forecasting revenue across the entire property.

Further, such platforms provide real-time data that helps inform strategic decisions.

One of the biggest challenges in implementing TRM, however, is bridging the gap between technology, staff, and different departments.

Hotels must ensure that data flows across all departments seamlessly, allowing for cohesive decision making. This requires both employees and the property’s infrastructure to adapt to new behaviors and processes. Staff training and a culture that embraces data-driven decision making are crucial for the successful implementation of TRM.

The Transition from RevPAR to Revenue Per Available Guest (RevPAG)

While TRM offers a broad view of the hotel’s revenue potential, RevPAG provides a more guest-centric metric for assessing performance.

RevPAR (Revenue Per Available Room): You’re likely familiar with this one. This is the traditional metric that provides a quick snapshot of a hotel’s performance by considering both occupancy (OCC) and the average daily rate (ADR). While useful, it focuses solely on room revenue, ignoring other revenue streams, and the overall guest experience.
RevPAG (Revenue Per Available Guest): Unlike RevPAR, RevPAG looks at total revenue generated by each guest during their stay, regardless of how many rooms are sold, or how many guests occupy a room. It captures all spending, including dining, spa services, recreational activities, and more. This metric offers a more advanced understanding of guest behavior, and their total contribution to the hotel’s revenue.

The 4 Advantages of Revenue Per Available Guest

Focusing on RevPAG can drive on-premise spending, and enhance the guest experience. Some advantages for your hotel may include the benefits below.

Engaging Loyalty Programs: Loyalty programs are a powerful tool for encouraging repeat visits and on-property spending. Offering rewards, exclusive perks, and personalized incentives helps your operation foster long-term relationships with guests. Such programs prompt guests to return, and continue spending within the hotel. A well-designed loyalty program not only increases revenue per guest but also strengthens brand loyalty, turning one-time visitors into lifelong advocates.
Personalized On-Site Experiences: Understanding guest preferences will further allow your hotel to craft tailored packages and experiences that encourage guests to spend more on-property. Whether it’s guided tours, hands-on cooking or mixology classes, or themed live entertainment, these curated activities enhance the guest experience, and drive additional revenue. Personalized offerings create memorable moments that guests are willing to pay a premium for, increasing overall spend per guest.
Wellness and Lifestyle Services: Investing in wellness services such as spas, fitness centers, and recreational facilities opens up new revenue streams, and enhances the overall guest experience. By offering wellness packages, relaxation treatments, or fitness classes, your hotel can cater to the growing demand for health and wellness experiences. These services encourage guests to spend more on-premise, turning your hotel into a desired destination that meets various guest needs.
Elevated Dining and Beverage Offerings: Exceptional culinary and mixology experiences can enhance on-premise spending significantly. By offering unique dining options like chef’s table events, wine tastings, or mixology masterclasses, your hotel can attract food and beverage enthusiasts, and encourage them to spend more during their stay. These high-quality experiences boost revenue, and elevate your hotel’s reputation as a destination for food and drink.

Implementing Revenue Per Available Guest

To maximize RevPAG, your hotel needs to focus on creating personalized guest experiences, and integrating technology seamlessly across all touchpoints. This involves taking the steps below.

Personalized Guest Experiences: Tailoring services and offerings to your targeted, individual guest preferences to not only enhance their stay but also encourage additional spending. This can include personalized room amenities, bespoke on-premise experiences, and exclusive access to hotel facilities.
Seamless Technology Integration (Tech-Stack): Integrating Revenue Management Systems (RMS) with other hotel technologies, such as PMS and POS systems, allows your hotel to track guest behavior, spending patterns, and preferences in real-time. This data is invaluable for identifying up-selling opportunities, and creating targeted marketing strategies.
Total Revenue Management Mindset: Adopting a TRM mindset involves viewing each guest as an opportunity to generate multiple streams of revenue. Your hotel operations team should train staff to recognize and act on up-sell opportunities, while maintaining a high standard of service.

Benefits of Using Both RevPAG and Total Revenue Management

When used together, RevPAG and TRM provide a powerful framework for maximizing your hotel’s revenue and profitability.

Revenue Optimization: TRM ensures that every revenue stream is optimized, while RevPAG provides insight into the guest’s overall value. Together, they allow your hotel to create targeted strategies that maximize revenue from both rooms and ancillary services.
Enhanced Guest Experiences: By focusing on RevPAG, your hotel can deliver personalized experiences that encourage guests to spend more on-property, leading to higher satisfaction, and repeat business.
Informed Decision Making: With a TRM approach, your hotel can gain access to comprehensive data across all departments. This data-driven approach enables more informed decisions about pricing, packaging, and service offerings.
Competitive Edge: Hotels that adopt TRM and RevPAG are better positioned to differentiate themselves from competitors, offering a more value-driven guest experience while maximizing profitability.
Sustainable Growth: Implementing TRM and RevPAG strategies leads to sustainable growth by optimizing revenue streams, and reducing reliance on room occupancy alone.

This diversified revenue approach enhances your hotel’s resilience in fluctuating market conditions.

My Final Thoughts

There’s no question, the hotel industry is evolving, and so must its approach to revenue management.

Total Revenue Management and Revenue Per Available Guest offer more comprehensive metrics that go beyond the limitations of traditional measurements like RevPAR and ADR. By adopting a modernized approach that integrates these metrics, your hotel can optimize revenue, enhance guest experiences, and build a more robust, modern operation.

To realize the benefits of TRM and RevPAG fully, your hotel needs to invest in technology, embrace a guest-centric mindset, and foster a culture of data-driven decision-making. In doing so, you’ll unlock new opportunities for your brand that drive profitability, and secure a more competitive edge.

Image: Canva

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AI-generated image of a closeup of a loan application and pen

October 4, 2024by David Klemt David Klemt No Comments

The Banks Have it Wrong

The Banks Have it Wrong

by Doug Radkey

It’s widely assumed that a well-written business plan will impress banks and SBA-type programs, and secure the funding required to launch a hospitality concept.

When starting a bar, restaurant, or hotel, most people are told exactly that: “You just need a business plan.”

The problem, however, lies in how these business plans are created. Too often, aspiring entrepreneurs turn to fill-in-the-blank templates provided by banks or online resources. They believe that simply completing the form will open the doors to financing, and start them on the path to building a successful business.

Unfortunately, this approach can do more harm than good. Let’s explore why the traditional reliance on business plan templates, including AI-generated business plans, can set both businesses and lenders up for failure.

In this article I dive into real-world examples, examine the success and failure rates of loans in the hospitality industry, and outline why banks and other programs need to rethink their loan approval processes to reduce risks for not only themselves but the entrepreneurs they serve.

The Problem with Business Plan Templates

Imagine this scenario: You’re excited to open a hospitality business, but you don’t know where to begin. You do some research, and learn quickly that you need a business plan to secure a loan. The bank or Small Business Administration (SBA) offers you a convenient template to complete, or you find one online that seems like it will do the job. You fill in the blanks, submit the plan, and, to your delight, the bank approves all or a portion of your loan.

However, the approval doesn’t mean your business plan is actually sound. Read that again.

It only means it meets the basic requirements of the bank’s loan approval checklist. A template provides a false sense of security, making entrepreneurs think they’ve covered all their bases when, in reality, crucial aspects of the business are left unaddressed.

For example, I recently reviewed a business plan for a client who had used a bank-provided template prior to our engagement. The plan was approved by the bank, but upon closer inspection, I found numerous errors: the start-up financial projections were unrealistic, the cash-flow analysis was incomplete, and crucial aspects of market analysis were missing.

The result? The project is on track to run out of money before it even opens its doors.

This example highlights a troubling issue: Templates don’t provide clarity, and they certainly don’t prompt critical thinking about the true costs to start, and the real challenges that the business will face once it’s operating.

The Risks of Using Templates

Business plan templates may seem like an easy solution, but they come with significant risks.

False Sense of Security: A completed template may look professional, but it doesn’t guarantee that the plan is sound or comprehensive. Key elements can be glossed over, copy and pasted, or simply misunderstood.
Lack of Critical Thinking: A template doesn’t ask tough or industry-specific questions. It doesn’t force you to analyze the competitive landscape, identify potential risks, or develop a clear financial strategy around a unique concept.
Inadequate Financial Analysis: Templates often provide a basic structure for financial projections but fail to help you understand the true costs of starting and running a business. A template won’t be specific to your concept, your revenue and cost channels, or industry benchmarks. The template won’t catch errors in your financials, leaving you and the bank exposed to significant risk.
Inability to Stand Out: In a crowded market such as the US, Canada, or Europe, differentiation is key. A cookie-cutter business plan won’t help you stand out from the competition. Despite handing them out, banks see thousands of these plans, and if you don’t demonstrate why your concept is unique and viable, you’re setting yourself up for denial.

The Dangers of AI-Generated Business Plans

As technology advances, AI-powered business plan generators are becoming more popular. I’ve seen a few ads for them over the past few months.

These tools claim to be able to create a business plan in minutes, promising efficiency and ease. However, relying on AI to write your business plan is just as dangerous as using a template. The same issues apply: lack of clarity, shallow financial analysis, and the absence of critical thinking.

AI-generated business plans may provide a surface-level solution, but they cannot replace the deep analysis required to make a business successful. Business plans need to be customized and thought out thoroughly, with insights drawn from real-world strategic planning.

Hospitality Industry Loans: Success and Failure Rates

The hospitality industry—particularly the accommodation and food service sectors—has one of the highest loan approval rates, but it also has some of the highest operator failure rates.

According to the U.S. Small Business Administration, in 2022 alone, 6,297 loans were approved for the accommodation and foodservice industry. These accounted for 13.2 percent of all small business loans, and 19.2 percent of total loan dollars. The average loan amount was US $784,768.

Despite these impressive loan numbers, the success rate of a business in this industry tells a different story. Only about 20 percent of hospitality businesses make it to their fifth year, and the average time to pay off a business loan ranges from five to ten years. The failure rates are driven by various factors, including cash-flow problems, a lack of market understanding, and poor financial planning.

So, why do banks continue to approve business loans based on inadequate business plans?

The Need for More than a Business Plan

Each reason for a business failing points to one underlying cause: lack of strategic clarity. In many cases, these businesses began with a standard business plan but skipped the other non-negotiable playbooks truly needed to be successful.

A well-rounded approach to strategic planning includes much more than a business plan.

Aspiring or seasoned bar, restaurant, and hotel operators need to develop feasibility studies to determine whether their business models can succeed in their target market. They also need concept development plans, prototype drawings, brand strategy plans, tech-stack plans, marketing plans, and financial playbooks.

Only after these steps are completed should the final business plan be written.

How Banks Can Improve Loan Success Rates

Banks have an opportunity to reduce their risks significantly—and increase the success rates of the businesses they fund—by requiring more than the completion of a business plan template during the loan approval process.

Instead, they should request detailed feasibility studies, along with the other playbooks, that go beyond the basics.

By working with entrepreneurs to ensure they have true clarity about their business model, market conditions, and financial outlook, banks can reduce default rates, and build stronger partnerships with their clients.

In addition, by encouraging the use of customized plans over templates or AI-generated plans, banks can ensure that they are investing in businesses with a clear path to success.

My Final Thoughts

Yes, a business plan is a vital tool for any entrepreneur, but it must be more than just a template, and lenders need to stop relying on these fill-in-the-blank approaches.

To build a successful business, you need more than a plan on paper; you need clarity, strategy, and a deep understanding of your market and financials. It’s time for banks, financing programs, and even angel investors to get it right and demand more than a standard business plan template. Only then will both the business and the lender see the long-term success they’re striving for.

Perhaps they, too, can then achieve success rates in the 90th percentile.

Image: Canva

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The Tea Lounge inside the lobby of Capella Bangkok, number one on the 2024 World's 50 Best Hotels ranking

September 18, 2024by David Klemt David Klemt No Comments

The World’s 50 Best Hotels: 2024

World’s 50 Best Unveils the top Hotels of 2024

by David Klemt

The Tea Lounge inside the lobby of Capella Bangkok.

Announced yesterday at The World’s 50 Best Hotels ceremony in London, England, the best hotel in the world features 101 rooms, suites and villas.

In direct contrast to the manic, fast-paced city in which it’s located, Capella Bangkok is a serene oasis. Floor-to-ceiling windows provide panoramic, mesmerizing views of the Chao Phraya River, and allow sunlight to flood into their generous rooms.

Speaking of rooms, their smallest is more than 650 square feet; suites range from over 1,000 square feet to well over 2,000 square feet. Accommodations are more like luxury apartments than mere hotel rooms.

And for those discerning guests who demand only the absolute best? There are two stunning villas to choose from, one of which is the Presidential Villa.

I think we’ve all been curious what hotel, if any, would climb past Lake Como’s Passalacqua to claim the number-one spot. Would the property belong to a massive portfolio? Be a heritage property or a new build? How many keys would the hotel that claims the crown boast?

Will Passalacqua repeat their 2023 feat and hold the top spot for a second year?

We now have the answer to those questions. And we know that while Capella Bangkok will now sit upon the World’s 50 Best Hotels throne for at least the next 12 months, Passalacqua still claimed the number-two spot.

Of course, along with the Best Hotel in the World Award, the 2024 World’s 50 Best Hotels also revealed the best hotels in Africa, Asia, Europe, North America, Oceania, and South America. This year’s ceremony also featured three brand-new awards, which you’ll find below.

American Express Travel One to Watch Award

The Peninsula Istanbul (opened February 2023)

Ferrari Trento Most Admired Hotel Group Award

Aman

SevenRooms Icon Award

Sonia Cheng, CEO of Rosewood Hotels & Resorts

The World’s 50 Best Hotels 2024: 50 to 11

Kokomo Private Island (Yaukuve Levu Island, Fiji)
The Tasman (Hobart, Tasmania, Australia)
Hotel Esencia (Tulum, Quintana Roo, Mexico)
The Brando (French Polynesia)
The Connaught (London, England, UK)
Six Senses Zighy Bay (Dibba, Oman)
Singita Lodges – Kruger National Park (Kruger National Park, South Africa)
Suján Jawai (Rajasthan, India)
Hotel Castello di Reschio (Umbria, Italy)
Gleneagles Hotel (Auchterarder, Scotland)
Le Bristol (Paris, France)
Amangalla (Fort Galle, Sri Lanka)
Royal Mansour, Marrakech (Marrakech, Morocco)(No. 3 Gin Art of Hospitality Award)
Aman New York (New York, New York, USA)
Eden Rock – St. Barths (Saint Barthélemy)
Hotel Bel-Air (Los Angeles, California, USA)
Four Seasons at The Surf Club (Miami, Florida, USA)
Capella Singapore (Singapore)
Four Seasons Madrid (Madrid, Spain)
La Mamounia (Marrakech, Morocco)
The Carlyle (New York, New York, USA)
One&Only Mandarina (Puerto Vallarta, Jalisco, Mexico)
Mount Nelson (Cape Town, Western Cape, South Africa)(The Best Hotel in Africa)
Park Hyatt Kyoto (Kyoto, Japan)
The Siam (Bangkok, Thailand)
The Calile (Brisbane, Queensland, Australia)(The Best Hotel in Oceania)
Rosewood São Paulo (São Paulo, Brazil)(The Best Hotel in South America)
The Lana (Dubai, UAE)
Bulgari Tokyo (Tokyo, Japan)(Nikka Whiskey Best New Hotel Award)
Desa Potato Head (Bali, Indonesia)
Borgo Santandrea (Amalfi, Italy)
Four Seasons Firenze (Florence, Tuscany, Italy)
Maroma (Quintana Roo, Mexico)(Flor de Caña Eco Hotel Award)
Hotel du Cap-Eden-Roc (Antibes, France)
Chablé Yucatán (Chocholá, Yucatán, Mexico)(The Best Hotel in North America)
Hotêl de Crillon (Paris, France)
Four Seasons Bangkok at Chao Praya River (Bangkok, Thailand)
Raffles London at the OWO (London, England, UK)(Lavazza Highest New Entry Award)
Mandarin Oriental Bangkok (Bangkok, Thailand)
Claridge’s (London, England, UK)

The World’s 50 Best Hotels 2024: 10 to One

Nihi Sumba (Sumba Island, Indonesia)
Atlantis The Royal (Dubai, UAE)(The Highest Climber Award: Number 44 in 2023)
Soneva Fushi (Eydhafushi, Maldives)(The Lost Explorer Mezcal Best Beach Hotel Award)
Aman Tokyo (Tokyo, Japan)
Raffles Singapore (Singapore)
The Upper House (Hong Kong, People’s Republic of China)
Cheval Blanc (Paris, France)
Rosewood Hong Kong (Hong Kong, People’s Republic of China)
Passalacqua (Moltrasio, Como, Italy)(Carlo Alberto Best Boutique Hotel Award)(The Best Hotel in Europe)(Number 1 in 2023)
Capella Bangkok (Bangkok, Thailand)(The Best Hotel in the World)(The Best Hotel in Asia)

Congratulations to the team behind Capella Bangkok for earning the number-one spot on the second-annual World’s 50 Best Hotels list!

Main Image courtesy of The World’s 50 Best Hotels. Capella Bangkok image: PanoramicStudio

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An AI-generated hotel bar area with seating next to large windows, with numbers superimposed over the image

September 10, 2024by David Klemt David Klemt No Comments

Modern Day Revenue Management for Hotels

Modern Day Revenue Management for Hotels

by Doug Radkey

Note: Image generated by artificial intelligence.

The landscape of hotel revenue management has evolved significantly in recent years, driven by both tech advancements and changing consumer behaviors.

With this in mind, I think now would be a good time to explore these current trends, tools, and strategies in hotel revenue management.

Below, I outline the importance of data analytics, dynamic pricing, and AI in maximizing revenue today, and as we move forward in this industry.

The Evolution of Revenue Management

In the early days of the hotel industry, revenue management was a relatively straightforward affair.

While the overall concept of revenue management originated in the airline industry in the 1980s, it was later adapted by hotels. Traditional practices relied primarily on static pricing models, where room rates were set based on the season, room type, and booking lead time. Rates were adjusted infrequently (often just a few times per year), and they were influenced mainly by historical data documented internally, and the intuition of revenue managers.

Hotels used simple tools such as spreadsheets and reservation logs to track bookings and manage their inventory. The focus was on achieving high occupancy rates rather than maximizing revenue per available room (RevPAR) and the other key metrics that we follow today.

Discounts and promotions were applied sporadically, without a deep understanding of market segments or consumer behavior, to help drive revenue during off-season periods. Group rates and corporate contracts were negotiated based on fixed rates, with little consideration for fluctuating market conditions.

From Static Pricing to Dynamic, Data-Driven Strategies

The transition from those early days to modern revenue management practices began in the late 1990s and early 2000s, driven by tech advancements and increased competition in the accommodation space.

The advent of online travel agencies (OTAs), real-time booking systems, and sophisticated data analytic tools transformed how hotels approached their pricing and inventory management.

So, what’s the modern approach?

Data-Driven Decision Making: The incorporation of advanced data analytics revolutionized revenue management. Hotels began leveraging large datasets from various sources, such as reservation systems, customer relationship management (CRM) software, and market intelligence platforms. This data-driven approach enabled more accurate forecasting, segmentation, and pricing strategies. Revenue managers could now analyze booking patterns, guest preferences, and demand fluctuations to make informed decisions.
Dynamic Pricing Models: Dynamic pricing involves adjusting room rates continuously based on real-time market demand, competitor pricing, and other external factors. This approach allows hotels to maximize revenue by selling the right room to the right guest at the right time and price. Dynamic pricing models consider various data points, including booking pace, market trends, weather, and special events, to optimize their recommended rates.
Automation and Real-Time Adjustments: Modern revenue management systems (RMS) introduced automation, allowing hotels to implement real-time rate adjustments. These systems use algorithms and machine learning to analyze data and update rates across all distribution channels automatically. This automation minimizes manual errors, and ensures consistent pricing across platforms, enhancing the hotel’s ability to respond to market changes quickly.
Focus on Total Revenue Management: While traditional revenue management focused primarily on room revenue, modern practices embrace a more holistic view known as total revenue management. This approach considers all revenue streams, including food and beverage, spa services, and other on-property offerings. By optimizing pricing and promotions across all areas, hotels can now maximize total revenue and profitability.

The Importance of Data Analytics

Data analytics involves the systematic analysis of data to uncover patterns, correlations, and trends that inform strategic decisions.

Sounds fairly important, right? In the hospitality industry, data analytics helps you understand market dynamics, predict demand, and tailor your hotel’s offering to meet guest needs. This level of analysis is paramount for developing effective revenue management strategies that maximize profitability.

One of the primary functions of data analytics in hotel revenue management is demand forecasting. By analyzing historical booking data, seasonal trends, and external factors such as local events, weather, or economic conditions, hotels can predict future demand accurately. This forecasting through data analytics enables hotels to adjust room rates more dynamically, optimize inventory allocation more efficiently, and implement targeted marketing campaigns that drive results.

Modern analytics platforms have revolutionized hotel revenue management by providing sophisticated tools for data analysis, strategic planning, and dynamic pricing. Atomize RMS stands out as a prime example of an advanced analytics tool that leverages data-driven decision-making to optimize hotel performance through dynamic pricing. This cloud-based revenue management system (RMS) uses sophisticated algorithms and machine learning to provide real-time pricing recommendations, as well as market insights.

Atomize enables hotels to make informed decisions based on real-time market conditions and predictive analytics by leveraging machine learning and big data. This data-driven approach leads to more precise pricing strategies, optimized inventory management, and improved profitability.

Moreover, the system’s ability to automate and streamline revenue management processes reduces the risk of human error, and frees up time for hotel staff to focus on other critical aspects of operations, such as providing a memorable guest experience, and elevating service quality.

The Role of Artificial Intelligence (AI)

Artificial Intelligence (AI) has further revolutionized the field of revenue management in the hotel industry, offering advanced capabilities that enhance both efficiency and profitability. Another AI-powered RMS provider is Duetto Cloud’s Game Changer, designed to analyze large datasets, identify patterns, and make real-time decisions.

One of the key capabilities of an AI-powered RMS is the automated pricing optimization. The system monitors market conditions continuously and adjusts room rates based on real-time data, with limited rules in the back-end. This dynamic pricing approach allows hotels to capitalize on fluctuations in demand, ensuring that they are charging the optimal rate at any given time.

These accurate forecasts can enable hotels to plan more effectively, manage inventory, and allocate resources more efficiently.

For example, AI can help predict when a hotel is likely to experience high demand and adjust staffing levels accordingly, ensuring optimal service quality. Additionally, accurate forecasting helps in identifying potential periods of low occupancy, allowing hotels to implement targeted marketing campaigns and promotional offers to boost bookings.

Beyond pricing and forecasting, AI-powered RMS can also enhance the guest experience through personalization. By analyzing guest data such as booking history, preferences, and feedback, AI systems can tailor offers and recommendations to individual guests.

For instance, an advanced RMS can identify a guest’s preference for specific room types, amenities, or dining options and use this information to provide personalized packages or upsell relevant services.

As AI technology continues to evolve, its role in revenue management is expected to grow, offering even more sophisticated capabilities and insights for hotels. Embracing AI-powered RMS now is going to be essential for hotel operators who are looking to compete and win in today’s fast-paced and data-driven market.

Integrating Revenue Management with Other Hotel Operations

As mentioned above, modern hotel revenue management is moving away from the siloed approach of focusing solely on room-based revenue. Increasingly, that outdated method is being replaced by a more holistic perspective that encompasses the entire guest experience.

This shift necessitates cross-department collaboration, aligning revenue management with sales, marketing, and operations to create cohesive strategies that optimize total revenue. Integrating efforts across departments means hotels can enhance their revenue streams and also provide a seamless and enriching experience for their guests.

To maximize total revenue, hotels must look beyond room revenue to optimize ancillary revenue streams, such as food and beverage (F&B), spa services, events, and so much more. This approach, known as total revenue management (TRM), involves a comprehensive strategy that considers all aspects of the guest experience.

For example, coordinating F&B with revenue management ensures that the on-property restaurant reservations and event bookings align with the hotel’s overall occupancy and pricing strategies.

The obvious and ultimate goal of cross-department collaboration is to enhance the guest journey and experience. Aligning efforts across revenue management, sales, marketing, and operations ensures hotels can create a seamless and personalized experience for their guests.

This can include personalized room amenities, customized dining options, and exclusive access to hotel facilities. Engaging with guests before, during, and after their stay through targeted communications and personalized offers can further enhance their experience and encourage repeat visits.

Looking Ahead

As you can see, modern hotel revenue management has become an intelligent discipline driven by data analytics, dynamic pricing, and artificial intelligence (AI). These elements are really becoming a non-negotiable for optimizing revenue, enhancing guest experiences, and maintaining a competitive edge.

Data analytics provides deep insights into market trends, guest behaviors, and demand patterns, enabling more accurate forecasting and strategic decision-making. Dynamic pricing, powered by real-time data and AI, allows hotel operators to adjust room rates fluidly, maximizing revenue by responding to market conditions.

AI further enhances revenue management through advanced capabilities such as predictive analytics and personalized guest services, all of which streamline operations and improve efficiency when integrated with other departments within your hotel.

Looking ahead, the future of hotel revenue management promises exciting innovations and trends. As AI and machine learning technologies continue to advance, we can expect even more precise forecasting models, and highly personalized guest experiences. The integration of big data from diverse sources, including social media, online reviews, and IoT devices, will provide richer datasets for analysis, leading to more nuanced insights and strategic opportunities.

Additionally, the increasing importance of TRM and revenue per available guest (RevPAG) will encourage hotels to optimize not just room revenue but also ancillary streams such as dining, spa services, events, and more.

Move Forward Today

For hotel operators like yourself, you must embrace and invest in advanced analytics tools, AI-powered RMS, and dynamic pricing strategies.

Adopting a data-driven approach will position you to better understand your hotel’s market, anticipate demand fluctuations, and tailor your offering to meet guest expectations.

This proactive stance will not only drive revenue growth but also enhance your brand equity.

Stay ahead of the curve and adopt cutting-edge technologies and strategies to navigate the complexities of the modern market and ensure long-term success. Now is the time to invest in the future, leverage the power of data and AI, and lead your hotel to new heights of profitability and excellence.

Image: DALL-E

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An AI-generated image of two silver balloons forming the number 15, superimposed over the interior of an upscale restaurant

September 5, 2024by David Klemt David Klemt No Comments

15 Years of Consulting: Lessons Learned

15 Years of Consulting: Lessons in Adaptability, Innovation, and Resilience

by Doug Radkey

Note: AI-generated image.

I made a life-altering decision to start consulting in August of 2009, and over the past 15 years I’ve accumulated more than 30,000 hours of experience.

Over the past 15 years and the span of those tens of thousands of hours, I’ve contributed to the creation of more than 270 new concepts. Further, these concepts boast a long-term success rate of over 98 percent.

Reaching these achievements, along with fifteen years in business, hasn’t been easy.

There have been many ups and many downs, just like any other business. There are times of standing high on a mountain, and times of wanting to throw in the towel.

One key element I have learned over the years is that success goes far beyond having a great vision and concept; it requires passion, precision, and execution.

This journey has been filled with pivotal moments, and by what I can boil down to as three fundamental and invaluable lessons in adaptability, innovation, and resilience. Each of those lessons are now rooted in KRG Hospitality’s core values of being creative, cultivated, and connected.

The lessons I’ve learned over the course of 15 years and more than 270 new concepts can help you and your business start, stabilize, and scale.

The Power of Adaptability

Adaptability in business refers to the ability to adjust and respond to changing circumstances, market conditions, and guest expectations. It is the capacity to pivot strategies, embrace new technologies, and innovate to stay both relevant and competitive.

For me, adaptability has meant developing a mindset of openness to change and a willingness to experiment with new approaches.

It is not just about reacting to changes as they happen but anticipating shifts in the market proactively, while preparing to meet new challenges. In business, this means being flexible in your operations, resilient in the face of adversity, and innovative in problem-solving.

An adaptable hospitality business is one that can adjust its offerings quickly, refine its services effectively, and even overhaul its business model if necessary. As importantly, such a business can accomplish all of that without any long-term disruption to its profit channel.

To embrace adaptability, you must foster a culture that values learning and continuous improvement. This involves encouraging your employees to share their ideas and feedback, experimenting with new systems, technologies and processes, and being open to constructive criticism.

It also requires a deep understanding of the market and guest needs, allowing your business to pivot swiftly and efficiently when necessary.

Adaptability is also about having a growth-based mindset. This type of mindset involves seeing challenges as opportunities for growth rather than obstacles. By being adaptable, your business can stay ahead of the competition, meet changing guest expectations, and capitalize on new opportunities.

In a world where change is the only constant, embracing adaptability is not just an option, it’s a necessity for long-term success. As entrepreneurs, cultivating this trait can lead to innovative solutions, greater efficiency, and a more sustainable long-term business model.

Embracing Innovation

Embracing innovation is about thinking creatively, challenging the status quo, and finding novel solutions to existing problems.

In this industry, innovation can manifest in various forms, such as adopting new technologies, offering unique guest experiences, or implementing sustainable practices. As an entrepreneur and leader in this industry, embracing innovation is crucial for staying relevant.

You will begin to see here how each of these lessons truly go hand in hand. For me, however, innovation goes beyond mere invention; it involves applying new concepts and ideas in practical and impactful ways.

In hospitality, innovation can be product-driven, such as developing a new menu item or room service feature. Or it can be process-driven, such as streamlining operations through a new technology integration. Innovation can also be guest-centric, focusing on enhancing the overall guest experience through personalized services or tailored offerings.

For example, the introduction of mobile check-in and digital concierge services in hotels revolutionized the guest experience, offering convenience and personalization.

Similarly, restaurants have innovated by incorporating immersive dining experiences that engage all of our senses. These innovations not only attract new guests but also differentiate a business in a crowded marketplace.

How to Embrace Innovation

To embrace innovation, your business must cultivate a culture that encourages creativity and experimentation. This involves creating an environment where employees feel empowered to suggest new ideas, and are not afraid to take risks.

Leadership plays a critical role in setting the tone for innovation, providing the necessary resources, and fostering an open-minded atmosphere.

One practical way to embrace innovation is to stay up to date about industry trends and technological advancements. Attending industry conferences and participating in webinars and mastermind groups can provide valuable insights and inspiration.

Additionally, businesses in this industry should invest in research and development (R&D) to explore new opportunities and test innovative concepts.

Finally, embracing innovation requires a willingness to adapt and iterate. Not every new idea will be successful, but the process of trying, learning, and refining is critical for continuous growth.

Your business should establish mechanisms for evaluating the effectiveness of new initiatives, and be prepared to pivot when necessary.

Fostering a culture of creativity, staying informed about trends, and actively seeking new opportunities helps your business innovate in ways that enhance the guest experience, and drive long-term financial success.

Driving Resilience

Resilience in business refers to the ability to withstand and recover from challenges, setbacks, and unexpected changes. It involves maintaining stability and continuity while adapting to new circumstances.

In further business context, this includes the ability to manage financial pressures, operational disruptions, shifts in consumer behavior, or even personal setbacks. Resilience also encompasses the mental and emotional strength to stay focused and positive in the face of adversity.

Resilient businesses are not immune to problems; rather, they are equipped to handle them effectively, and learn from the experience.

In my experience, you must be willing to prioritize building strong relationships with guests, community partners, and industry peers in order to embrace innovation. These connections provide a support network that can offer assistance, advice, and resources during tough times. Collaborations with local businesses and partnerships with suppliers can also provide you with a critical support line.

Real-World Resilience

Personal anecdotes often serve as powerful illustrations of resilience, providing real-world examples of overcoming adversity and demonstrating the strength required to persevere. Real-life examples show that resilience is not just an abstract concept but a practical quality that can be developed and applied in everyday life.

These stories often detail the emotional, mental, and physical hurdles faced, and the strategies used to overcome them.

For example, a story about recovering from a business failure can illustrate the importance of maintaining a positive mindset, and seeking new opportunities. Perhaps it is a career setback, a health challenge, or a natural disaster. Regardless, these personal stories often include reflections on the lessons learned from facing adversity.

These reflections can range from practical advice, such as the importance of planning and preparation, to emotional insights, such as the value of gratitude, and the strength found in vulnerability. Stories of resilience serve as a reminder that setbacks and challenges are a natural part of life, and that it is possible to overcome struggles with determination and support.

Lastly, building resilience also involves cultivating a positive and proactive mindset. It’s imperative to view challenges as opportunities to innovate and improve. This can mean reevaluating business models, exploring new revenue streams, or investing in your people for further training and development.

Resilient businesses are not just reactive, they are proactive in anticipating potential issues and preparing for them. By building strong relationships, learning from setbacks, and maintaining a positive outlook, your business can navigate challenges and emerge stronger.

Core Values in Action

Core values are the fundamental beliefs and guiding principles that shape the culture, decision making, and identity of your business. They are the compass that directs the actions and attitudes of everyone within your organization, from leadership to frontline employees.

In the hospitality industry, core values are particularly crucial as they also define the guest experience and set the tone for interactions with guests, employees, partners, and the community.

For entrepreneurs and leaders in this industry, developing and embracing core values is crucial for creating a cohesive and purpose-driven business. Core values not only guide strategic decisions but also inspire and motivate the team, ensuring alignment with the mission and vision.

Over the past 15 years, our journey in the industry has been guided by these three core values: Creative, Connected, and Cultivated. These values have aligned perfectly with the lessons I’ve learned and shared about being resilient, innovative, and adaptable.

Our Core Values

Creativity is at the heart of innovation. It involves thinking outside the box, challenging conventions, and finding unique solutions to problems.

In the hospitality industry, creativity is needed for differentiating a brand and providing memorable experiences. Our creative approach has allowed us to design distinctive concepts, develop engaging strategies, and craft personalized staff and guest experiences.

Embracing creativity means exploring new ideas constantly, and staying open to unconventional approaches.

Being connected refers to fostering strong relationships with guests, community partners, and industry peers. It’s about building a network of support and collaboration that extends beyond the business itself.

In times of adversity, these connections have been invaluable. Whether it’s partnering with local businesses during economic downturns or engaging with guests through personalized communication, staying connected has helped us navigate challenges and seize on potential opportunities.

Lastly, cultivation is the process of continuous growth and improvement. It involves nurturing talent, refining processes, and striving for excellence.

In our experience, being cultivated means committing to lifelong learning, and embracing a growth-based mindset. This value has driven our dedication to professional development, the quality in our deliverables, and operational efficiency.

To embrace core values, your business must integrate them into every aspect of operations. This includes staff onboarding practices, guest interactions, and strategic decision making. You and your leaders should model these values and encourage employees to do the same.

Demonstrating and reinforcing your core values consistently allows you to create a strong, unified culture that resonates with both employees and guests.

And the end of the day, you have to remember that core values provide direction, inspire action, and foster a sense of purpose.

Conclusion

As I sit back and reflect on the lessons learned from 15 years of consulting in the hospitality industry, it’s clear that the journey has been shaped by the powerful forces of adaptability, innovation, and resilience.

These experiences have not only defined our approach but have also laid the foundation for future endeavors. The hospitality landscape evolves continuously, with new challenges and plenty of opportunities on the horizon. From technological advancements to shifting guest preferences, the industry is truly poised for positive transformation.

Looking ahead, however, it’s crucial for businesses to remain flexible and open to change.

For us, continuing to embrace adaptability means staying agile in the face of uncertainty, and being ready to pivot when necessary. Innovation will continue to play a pivotal role, driving new concepts and experiences that set businesses apart.

Resilience, as always, will be the foundation that supports us through trials and tribulations, ensuring that we meet the characteristics needed to win.

I strongly encourage you to internalize these three qualities in your own journey. Whether you’re an entrepreneur, a coach or consultant, or an industry professional, integrating them into your own set of core values—be it creativity, connection, cultivation or any other set of values—will anchor you in your pursuit.

These values are not just guiding principles but also a source of strength and inspiration.

Embracing adaptability, innovation, and resilience, and staying true to our core values, has made us confident in navigating this ever-changing terrain with purpose over the next 15 years.

Who’s with us?

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