These are interesting times in which we live; economically, culturally and professionally.ÊFor most Americans, this is true. However, for a sector of professionals, hospitality, we have been here before.ÊWe all have seen this movie time and time again. Specifically speaking, recession, saturation of new hotels within the hospitality sector due to development and availability of patient money.ÊAll lead ultimately to low occupancy, ADR and RevPAR.
These are interesting times in which we live; economically, culturally and professionally.ÊI recall my entry into the hospitality industry over 25 years ago at a time when rates were dipping along with occupancy and ADR.ÊThis lasted several years but to me it seemed like an eternity.ÊBut we all soldiered on, striving to exceed guests’ expectations, providing the most unique hospitality experience.ÊWe did what hotel professionals do; we delivered and placed the guests first.
The cycles of turbulence continued throughout my career. Each time under the leadership of some smart and skillful presidents and managers, we created processes for weathering the economic storms.ÊIn other words, we prepared for challenging times and survived without compromising quality.
In my opinion, hotel folks are some of the most resilient, resourceful and disciplined professionals in the American workforce. Our industry is one of the first sectors to be affected by fluctuation within the financial markets Ð recessions, increase in unemployment directly impact the travel industry.ÊThe traveling public cut back, tighten their belts and eliminate indulgences Ð travel. Our industry is far from being recession proof. What we as hotel professionals fail to realize though is that the discipline, commitment to service excellence and overall skills innate to our industry are easily transferable.ÊIn fact, hotel folks can transition into almost any industry and sector; making us virtually recession proof.ÊIf we are strategic enough to prepare ourselves to remain relevant.
The loss of room nights, occupancy and ADR equals cutbacks across the board, meaning non-essential (everyone is essential in my opinion) staff, budgets and sometimes amenities and services. For many hospitality professionals loss of a position can not only be devastating financially but professionally as well. It is difficult to get back to a former position or level post layoff; particularly if you were at the height of your career; i.e. executive team member and even C-Suite. The truth be told those positions may never return as demonstrated by recent mega hospitality mergers, acquisitions and/or sales.
What is a hospitality professional to do with decades of experience at various hospitality brands -Êan entire career in one sector?ÊCreate a strategy and tools for remaining relevant while relevant. It is very easy to perform status quo in a market that appears to be robust.ÊBut again, we have all been here before; the quiet before the storm. I am in no way suggesting that a storm is brewing but why take a chance that a storm isn’t just around the bend?Ê
Prepare, as if a changing economic tide is approaching. Hone or obtain new skills, contacts, strategic plans, expand networks, processes, business and client base. Structure your business and professional selves in a manner that is recession-proof. Do this while gainfully and happily employed and productive.
I have seen and continue hear from hospitality professionals out of work, trying to reposition/redirect and reinvent.ÊThey seek consulting projects and opportunities realizing that their former positions are never coming back.ÊAnd for many, there is no desire to return to the what was, they too are ready for change.ÊAlthough it is certainly not too late they quite honestly should have prepared long ago; when key markets were robust.ÊAgain, it is never too late to redirect.
Five years ago, this September, at the end of a twenty-five-year career in hospitality, public relations, I began to feel the winds of change. I questioned the relevancy of PR as I practiced it, during the height of hotel acquisition and sales phenomenon. The traditional ÒhotelierÓ had be become institutional investors.ÊGone were the days of dynastic hospitality ownership (multi-generation family offices), andÊin its place were REITs, funds and other institutional investors.ÊLong story short, PR wasn’t a revenue-generating line item; PR alone was not recognized by this new group of hoteliers as directly generating room nights, increasing ADR or occupancy. It was difficult to justify to the investors PR budgets. Investors who pretty much were committed to aÊthree to five-year exit strategy, which is typical in most hospitality investment deals; meaning quick returns.Ê
My practice of PR was quickly becoming irrelevant and so I left the table so to speak, while I was still relevant. Banking on my PR and hospitality expertise and skills, deeply rooted in the principles of hospitality, I transitioned comfortable into commercial real estate specializing in hospitality assets. The reason I could do so with ease was simply because I had been here before, meaning, my direct reports were asset managers, institutional investors and my task was to generate ROI through strategic PR campaigns to position assets for future acquisition. I had been here before and now I was yet again relevant and recession-proof. You see, there will always be patient money waiting to park in a stable country, assets to be acquired or sold. I easily executed due to my hospitality and PR backgrounds and expertise.
The point I am making to my former hospitality colleagues and hospitality professionals alike, is not necessarily to leave the table but instead, chart a new course to stay relevant within your organizations and current positions.ÊLearn to recognize the winds of change so that you can pivot and redirect. Arm yourselves with skills to include technology and other social, widely used methods of public engagement. By doing so you not only increase your knowledge/skillset and practice but achieve market-share (business/clients) and more importantly, ROI for institutional investors (hoteliers). You will remain relevant.
Below are some tips to help you assess where you are, gage the winds of change and to prepare you to weather any economic storm:
Signs your skills, services and/or expertise may be irrelevant in present day industry practice
Business is dropping off significantly not due to market conditions Ð business is going to the competition
You are no longer the Ôsource’, sought after industry leader/expert
It is difficult or near impossible to command your standard rates, salaries or fees
Trends Ð markets emerge you are not aware of and have not pursued
Superiors/colleagues are suggesting strategies that include technology and other skills you have not employed or may not possess
You are generating less revenue for clients and/or the organization Ð forecasts indicate a continuance of low earnings
You no longer have the support of constituents
Clients or managers are requesting justification of approved action steps when they had not before
You are no longer enjoying what you doÐ it is a paycheck
When to reinvent, reset and/or re-launch:
At the height of your career Ð you are still The Go to Woman or Man and are well-respected
You have achieved your goals, accomplished what you set out to do and produced remarkable results
Introduced strategies to continue a successful course for a client, corporation, etc. policy/program generating results and revenue going forward
The direction of the business/company has veered off track and no longer represents your core philosophy
Your interests extend beyond your industry and/or day-to-day responsibilities
What once motivated you is no longer of interestÐ you long for a new challenge
Well before the powers that be notice your fading interest
Resetting the course to remain relevant:
You have the option to remain in your present position or consultancy but with new strategies, skills and/or expertise Ð prepare yourself
Consider a new industry suitable to your expertise and skills; in which existing contacts are transferableÊ
Create a plan to respond to changing market conditions Ð make it revolutionary
Secure new business with a clear plan for increasing revenue/market share
Determine how you can better service existing clients and/or your organization
Incorporate technology that is industry specific, cost effective and revenue-generating
Place yourself at the forefront of technology within your organization, business and client base Ð hone your skills and embrace technology
Bring your employers, clients and staff along forÊthe ride Ð get them pumped and excited Ð turn them into cheerleaders
Spread the word Ð don’t be an island Ð share tactics, strategies and resources within the organization and/or clients Ð become a trusted resource
Hospitality will always be for me the most rewarding and best sector in our economy. There is nothing more rewarding than servicing a traveling public in any capacity, to expand business and/or a brand.Ê Through sales, marketing, consulting, acquisition and development.ÊIt doesn’t matter; it’s all good.Ê
In my role as a commercial real estate executive, I continue to enjoy the hospitality industry but now on the investment side. In addition, I created a consortium consisting of former hospitality colleagues, clients and direct reports, to deliver projects to ensure they too remain relevant. We hospitality folks take care of our own.
As a real estate professional, I understand the hospitality assets I represent, as well as my investors’ strategies; I get to deliver to both value, ROI and assets in line with their goals.ÊThe reward for me at the end of the day is I get to enjoy an industry I love, hospitality, all the while remaining Relevant and recession proof.ÊFor those of you seeking strategies to increase skills, network and business, I have outlined tactics in a book ÔOperation reset: A guide to reinvent your career in any economy’.
By Trica Jean-Baptiste
Trica Jean-Baptiste is the founder and President of Morgensheer Hospitality, Inc., a consortium of hospitality, real estate, development, sales and marketing and communications consultants.ÊThe Morgensheer Hospitality Inc. Consortium provides strategic hospitality services to real estate investors acquiring and developing hospitality assets.ÊTrica is also a licensed real estate sales associate specializing in commercial real estate Ð hotels, resorts, hospitality, development projects and real estate investments. Prior to embarking upon a second career in commercial real estate, Trica was President and founder of Trica Jean-Baptiste Communications, LLC; an award-winning boutique Travel Hospitality PR based in NYC for 15 years. While heading up Trica Jean-Baptiste Communications, LLC. she represented some of travel’s leading hotels, resorts and tourism units: Rocco Forte Hotels, Star Hotel’s the Michelangelo Hotel, St. Giles Hotels New York, Hotel St-Barth Isle de France, Rosewood Hotels’ Caneel Bay and Little Dix Bay, Hotel Esprit St-German (Paris, France); Dubai Tourism, Scotland Business Tourism Unit, Brussels to name a few.
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