Intro/Outro – 00:00:02: Welcome to The Lodge Second podcast, introduced by Revinate, the podcast the place we discuss to leaders within the hospitality trade. Should you’re in search of traits, views, and tales from leaders in journey and hospitality, you’re in the correct place.
Karen – 00:00:22: Howdy, and welcome to The Lodge Second podcast. I’m your host, Karen Stephens, the Chief Advertising and marketing Officer of Revinate. And right now, we’ve the pleasure of internet hosting Kathleen Cullen, who’s the Govt Vice President at PTG Consulting. With over 25 years of expertise within the hospitality trade, Kathleen brings precious insights into maximizing profitability and enhancing visitor expertise throughout numerous lodge segments. Kathleen’s contributions to hospitality have been widely known, incomes her one of many prestigious awards at HSMAI, High 25 Extraordinary Minds in Gross sales, Advertising and marketing, and Income Optimization. The truth is, Kathleen has additionally written a e book, which is titled Evolving Dynamics from Income Administration to Income Technique, which can be accessible by way of HSMAI. Welcome to the podcast, Kathleen.
Kathleen – 00:01:08: Thanks a lot, Karen.
Karen – 00:01:10: I’m actually glad to have you ever right here. We’ve recognized one another for a very long time.
Kathleen – 00:01:13: Sure, we met in Boston, I believe.
Karen – 00:01:15: That’s proper, sure, at a Most well-liked Lodge Group convention. They’ve their annual convention yearly.
Kathleen – 00:01:20: Sure.
Karen – 00:01:20: In order that’s truly a great place to begin. So that you’re the EVP at PTG Consulting. So you possibly can inform us how that’s linked to Most well-liked Lodge Group.
Kathleen – 00:01:28: Yeah, nice query. So through the years, the corporate has developed from pure lodge manufacturers providing gentle model companies — gross sales, advertising, income — to inns in search of some platform in these areas. And about 5 and a half years in the past, the Ueberroth’s, who’re the homeowners of now, known as Most well-liked Journey Group, they developed the corporate from pure lodge manufacturers to lodge manufacturers plus consulting manufacturers. And we’ve PTG Consulting plus Past Inexperienced Journey, which is our sustainability consulting firm. And I run each PTG Consulting and Past Inexperienced Journey.
Karen – 00:02:09: Oh, nice.
Kathleen – 00:02:10: And so the whole lot that PTG does helps impartial inns. So we work with Most well-liked Inns, Historic Inns, Past Inexperienced Inns. However we additionally work with non-affiliated inns. So we can assist any lodge it doesn’t matter what their affiliation is.
Karen – 00:02:28: Oh, nicely, that’s nice to know. So clearly, Most well-liked Lodge Group has an exquisite portfolio.
Kathleen – 00:02:32: Sure. Very fortunate to work with a number of the finest within the trade.
Karen – 00:02:36: But it surely’s so good to know that in the event you’re an impartial lodge on the market and you want to some consulting companies, that’s accessible to you.
Kathleen – 00:02:43: Yeah. And we provide income administration companies, gross sales, PR, and we’re utterly impartial to Most well-liked Inns. So anyone can come to us for these companies.
Karen – 00:02:56: So that you’re in a position to leverage quite a lot of know-how platforms and do no matter that lodge wants.
Kathleen – 00:03:01: No matter that lodge makes use of.
Karen – 00:03:02: Okay. Very cool. So are you able to inform us slightly bit about your journey up to now in your profession? So I discussed you’ve been in hospitality for some time. So the place did you get your begin?
Kathleen – 00:03:10: I began on the entrance desk of a Sheraton once I was in school. And I truly ought to again up. I grew up being obsessive about inns. I used to be very fortunate early on in my life the place my household took us touring around the globe very often, and we went to lovely locations. And as a younger woman – teenage — I liked sitting within the foyer and simply watching the operations — what was taking place. Beloved the folks watching, however I additionally liked how the lodge interacted with their clients. So, I had an attraction to it means earlier than I even knew actually what that meant. However my first actual job was working on the entrance desk at a Sheraton.
Karen – 00:03:56: Wow. Okay. So, you began on the Sheraton — younger girl, and you then got here up by way of the ranks. So, the place did you progress from there? How did you get, clearly, EVP right now, however what was type of the trajectory from the entrance desk?
Kathleen – 00:04:08: Effectively, I spent a few years in operations, and I all the time prefer to share that as a result of it means I’ve a very good understanding of the again of the home, how the lodge actually works, and what hoteliers want with a view to optimize their enterprise — run their enterprise. After which I used to be fortunate sufficient to be mentored by a pair folks on this factor that was referred to as yield administration. Again on the time, no person actually knew what it meant, however I had some superb mentors that actually educated me. That led me into the world of income administration that I simply fell in love with. And it encompassed the whole lot from reservations workforce, entrance desk workforce, the know-how that we used, and the way we use that know-how, all the way in which to what charges needs to be set, stock administration, working with the gross sales division for his or her alternatives, and optimizing all of these completely different areas. And ultimately I went to Two Roads Hospitality.
Karen – 00:05:09: Oh, yeah?
Kathleen – 00:05:09: And I used to be in command of income and distribution, in addition to concerned in a variety of new lodge openings and transitions for Two Roads. And I did that for about six years.
Karen – 00:05:20: Okay.
Kathleen – 00:05:20: Yeah. After which about 5 and a half years in the past, I joined Most well-liked Journey Group to begin up the hospitality portion of PTG Consulting.
Karen – 00:05:28: Of the consulting. Yeah, and I like that you simply type of gave the context of your background there, as a result of I do suppose it’s so necessary. Each lodge has completely different wants, and you must perceive how all of these items work collectively.
Kathleen – 00:05:39: Sure.
Karen – 00:05:40: So are you able to give me an concept of a day within the life in the event you’re employed in by this impartial to return in and handle an issue? I do know we’re sitting right here at NAVIGATE in Miami. You and I are going to do a panel later. And a part of that panel we’re speaking about — if somebody can simply cut back their prices by a pair proportion factors, what’s the low-hanging fruit if you go right into a lodge, if there may be any, to assist them optimize and actually get on observe?
Kathleen – 00:06:03: Yeah. That’s a very good query. So low-hanging fruit is among the first issues that I all the time speak about is looking at what you do have right now, and the way you might be utilizing your know-how to course of info forwards and backwards, and how you can use it to trace your info. In order that’s one. That’s, to me, low-hanging fruit. As a result of many individuals use know-how in a means that’s not well-suited for his or her wants. So it’s understanding how you can use that know-how and optimize it. Then there’s additionally how you’re employed collectively as a workforce. So is the income skilled working nicely with the gross sales workforce, and the advertising workforce, and the entrance desk workforce? In order that collaboration to essentially deal with full business technique. And plenty of inns nonetheless go after quantity versus optimum alternative. And so that’s actually the place you will get into it. It’s slightly bit extra complicated, requires much more dialogue, much more analysis. However looking at not simply quantity, the place you will get your highest quantity, however what’s your most worthwhile alternative?
Karen – 00:07:17: Wow. Okay. So that’s actually the core of economic technique, which I believe is so cool, and simply because it’s only a completely different means of taking a look at it. So not every bit of enterprise is a chunk of enterprise that you simply essentially need.
Kathleen – 00:07:29: Proper.
Karen – 00:07:30: Understanding your combine.
Kathleen – 00:07:31: Proper.
Karen – 00:07:31: After which making an attempt to determine the way you shift. So when a lodge says, “Kathleen, we want extra direct bookings, what will we do?” As a result of that’s going that will help you with a few of that price. So what’s type of you’re like, “Hey, that is how we begin eager about direct bookings?”
Kathleen – 00:07:46: Yeah. So direct bookings are essential. Many instances we’re investing within the OTAs, for instance, or third-party bookings, and we’re doing advertising by way of them. Why not make investments these advertising {dollars}, those self same {dollars} that you simply’re presently giving to 3rd events, and shift these — that funding into your individual web site, into your individual direct reserving technique, into your individual communication with the shopper database that you simply do have? There’re many alternative choices from digital advertising the place you have to be investing your cash, be certain that your search engine marketing is optimized, your PPC is lined up together with your methods and campaigns that you simply wish to drive. Quite a lot of these items don’t require large quantities of funds. And in the event you simply shift a few of these {dollars} from what you’re investing in different areas over into your direct reserving methods, that may go loads additional.
Karen – 00:08:40: Effectively, and I believe it’s nice when folks can rent a marketing consultant. Like in the event you’re on the market and also you suppose, “Okay, we’re a small workforce. We don’t actually understand how to do that.” I believe there are organizations like PTG that may are available in and say, “Hey, as a result of in the event you’re doing loads, your combine is heavy in OTAs.”
Kathleen – 00:08:54: Yeah.
Karen – 00:08:54: That’s a variety of comm-ish.
Kathleen – 00:08:56: Lots.
Karen – 00:08:56: That’s some huge cash sitting in that bucket.
Kathleen – 00:08:58: Yeah.
Karen – 00:08:59: And I believe typically hoteliers must suppose, “If I reinvest in know-how or a consulting dedication and get the instrument set –
Kathleen – 00:09:05: Sure.
Karen – 00:09:06: …to know, take into consideration as a advertising price range and shift it –
Kathleen – 00:09:10: Proper.
Karen – 00:09:10: …then the payoff goes to return.”
Kathleen – 00:09:12: Completely. And plenty of instances folks suppose simply investing it within the third occasion is a simple win. Sure, it’s a simple win, however you’re not even seeing the quantity that you simply’re spending in that fee that you simply simply talked about in your P&L.
Karen – 00:09:27: Proper.
Kathleen – 00:09:27: For instance. They’re preserving that cash. You’re not truly paying that out.
Karen – 00:09:31: Proper.
Kathleen – 00:09:32: …with sure fashions.
Karen – 00:09:33: Yeah.
Kathleen – 00:09:33: So it’s prices that you simply’re not seeing on the P&L.
Karen – 00:09:36: It’s hiding. It’s hiding in between markup and margin. We speak about that loads. So in the event you’re writing an enormous fats fee examine, impulsively your controller is like, “We all know who that’s!”
Kathleen – 00:09:46: Proper.
Karen – 00:09:46: But when it’s hiding, then you recognize what you see that’s within the fee, not within the markup.
Kathleen – 00:09:50: Precisely. Precisely. And you may truly be doing very nicely in your star report, which is consultant of high line, however in the event you’re not taking a look at your backside line, the profitability, the NOI, then that’s an enormous alternative for a lot of inns to essentially begin specializing in that.
Karen – 00:10:09: Yeah. I like that. I like that shift. And I like that we’re speaking about that right now, right here. And in the event you’re not — you’re listening to this podcast, and we’re within the room. The place can folks go to search out? I do know that there’s a variety of sources which are beginning to come collectively on the market. We talked about HSMAI. We simply needed to discuss to Jennifer Hill, who’s on one other podcast.
Kathleen – 00:10:26: Nice.
Karen – 00:10:26: Who’s put collectively a variety of documentation.
Kathleen – 00:10:27: Yeah.
Karen – 00:10:28: So what’s your suggestion for any individual who could be listening to get educated on this technique?
Kathleen – 00:10:33: Effectively, I believe one of many leaders on this space is Kalibri Labs. They’ve completed an exceptional job in synthesizing the information for a lot of lodge manufacturers. And they also have a variety of knowledge the place they’re trying on the backside line profitability. And so they have a variety of expertise in serving to to begin that dialog. What you have to be doing internally? HSMAI is one other nice useful resource. They’ve a full publication lately launched the place it’s a full business technique evaluation, I believe is what it’s, you can truly go in and assess your individual lodge to see the place you might be that may very well be fascinating.
Karen – 00:11:12: I adore it. The very first thing you bought to do is determine the place you might be.
Kathleen – 00:11:15: Yeah.
Karen – 00:11:15: After which you possibly can determine the place you’re going.
Kathleen – 00:11:16: Proper. Yeah. Yeah. After which seek the advice of with PTG Consulting that will help you get there.
Karen – 00:11:22: Show you how to get there. That’s proper. So a quote that I learn of yours that I like is, “Hospitality is about creating and delivering distinctive experiences.”
Kathleen – 00:11:29: Yeah.
Karen – 00:11:30: You’re like, sure, I did say that. Superior.
Kathleen – 00:11:32: Someplace.
Karen – 00:11:33: Someplace. So are you able to discuss slightly bit about how a data-driven tradition, proper? We take into consideration visitor expertise, which is the contact with the company. It’s why you bought into hospitality since you adore it. You like the visitor expertise. However how does making a data-driven tradition improve that and make it even higher?
Kathleen – 00:11:50: Sure, you possibly can take a look at all the information that you really want, however in the event you’re not creating the correct tradition, and also you’re not looking on the buyer suggestions and understanding what the shopper desires and what they’re telling you, then all that knowledge is just not actually going to matter since you’re going to lose that buyer. Lately, that buyer expertise and buyer communication is so necessary. And there’s many applied sciences on the market that assist help that fixed communication. Whether or not it’s pre-arrival all the way in which to after they’re on website.
Karen – 00:12:22: Okay, so it’s amassing the information, after which it’s ensuring as a workforce you know the way to go after it and operationalize it. And is that one thing you do as a part of your consulting as nicely? Get the entire workforce collectively? As a result of I think about, nicely, you inform me, however I’d assume that each lodge presents its personal set of issues that may very well be optimized.
Kathleen – 00:12:39: Yeah, oh yeah. Each single shopper, each lodge, each tradition is completely different. So it’s actually understanding what’s working and what isn’t working for that specific lodge.
Karen – 00:12:50: For that lodge. Okay, cool. All proper, so I’ve one final query for you as a result of that is one other factor that comes up loads. And we talked slightly bit about STAR experiences and comp units. And when you concentrate on a comp set on a STAR report, you’re eager about inns which are native to you which are comparable in STAR score, and so forth. However actually, I believe what we’re seeing extra as we get increasingly digital on the market, the place are inns actually competing? Like, you recognize, if it’s summertime and also you’re a lodge, is there any taking a look at your comp set in your neighborhood or how do you have to be eager about that?
Kathleen – 00:13:18: Yeah, that’s a very good query. And it’s positively a path that we have to begin shifting in and have extra of those conversations as a result of such as you talked about, there’re the normal comp set measurements the place we’ve our main comp set, some folks have secondary, some folks have tertiary, some folks have aspirational, and people are all nice. However what I all the time suggest to inns is check out what your alternative is and create a comp set from there. So for instance, and it is a simplified instance, however who do you compete in opposition to to your group alternatives? Who do you compete in opposition to for your corporation journey alternatives? Who do you compete in opposition to to your leisure or luxurious, tremendous high-end luxurious leisure? And people needs to be the opponents that you simply’re looking at for every phase of that enterprise and seeing what you will get from every of these.
Karen – 00:14:14: And they won’t be in your market.
Kathleen – 00:14:16: Probably they’re not. A few of them could be, however many won’t be.
Karen – 00:14:20: Should you’re in search of a seashore vacation spot, you don’t know. I’m going to Miami. You don’t know the place that client is coming in. So I believe that we’ve seen a variety of company that come on the podcast — we speak about how necessary experiences are, ensuring that your web site actually displays the native space, all of the issues that may be completed. So it’s means past that. So yeah, that’s a great factor. Clearly, we do a variety of leisure. We take into consideration the leisure phase loads at Revinate. However I hadn’t considered that for group, and company, and any piece of enterprise.
Kathleen – 00:14:50: Each single phase – tour operators. There’s so many alternative segments you can actually slender down. After which I’d even take it a step additional and just remember to perceive the place these alternatives are — who these opponents are per phase. Mirror that in your communication out to the purchasers, together with your web site. But additionally don’t neglect about your reservation gross sales division as a result of they’re essential in understanding how you can discuss with a enterprise traveler versus a bunch traveler versus luxurious leisure traveler. These are utterly completely different types of communication.
Karen – 00:15:27: And so they’re going to need completely different facilities in your property. So it’s good to understand how to do this. Okay, so a few closing questions for you. So it is a enjoyable one. So we’re in April. We’re already partially by way of the yr. Any key classes? I imply, yearly is completely different popping out of COVID. And it’s shifting quick.
Kathleen – 00:15:44: Yeah.
Karen – 00:15:44: So have you ever had any massive classes which have come thus far out of this yr that you can imagine or something that’s come on this summer time? Like, what are your predictions of what 2024 goes to appear to be as we transfer by way of the yr?
Kathleen – 00:15:56: Effectively, I believe, I don’t know if it is a new concept, however I believe inns are nonetheless grappling with the ADRs that they have been getting for a few years in comparison with the ADRs that they’re getting now. And issues have positively stabilized. So it’s determining methods to just remember to can maintain fee with out dropping all of that enterprise to inns which have lowered their fee. So I believe an enormous one is knowing your fee technique. After which, once more, simply determining what’s the alternative to your specific lodge, provided that new idea, I’ll name it, that you simply’re going to go after.
Karen – 00:16:37: Proper. The brand new piece of enterprise. So we noticed revenge journey massive time in 2022. Felt like in 2023, lots of people went internationally. In order that was like, “I’m going to depart the nation.” And are you seeing a return again to extra home journey within the summertime, or is it too quickly to name? What do you suppose?
Kathleen – 00:16:55: I believe for me, that’s too quickly to name. I haven’t actually touched on that simply but.
Karen – 00:17:00: Okay. Yeah. So we’ll keep tuned on that one. Okay. After which one last query for you. What do you do to maintain on top of things on the trade? Are there any information retailers or thought leaders or, you recognize, the place do you discover your sources if you’re on the market to just remember to’re staying knowledgeable only for our listeners who wish to get extra educated in our trade?
Kathleen – 00:17:17: Before everything, it’s studying on-line publications, but in addition coming to conferences like NAVIGATE. These are invaluable due to the networking, the concepts change, the audio system sharing info. So to me, that’s invaluable.
Karen – 00:17:32: That’s proper. All proper. Effectively, I’m glad you’re right here. That’s an amazing place to finish it. So thanks, Kathleen. I actually respect it.
Kathleen – 00:17:37: Yeah. Thanks.
Karen – 00:17:37: And it’s been nice to see you. So my visitor has been Kathleen Cullen, who’s the Govt Vice President of PTG Consulting. Thanks a lot.
Kathleen – 00:17:43: Thanks, Karen.
Intro/Outro – 00:17:44: Thanks for listening to The Lodge Second podcast. Be certain that to subscribe wherever you take heed to podcasts. And in the event you’re watching on YouTube, please just like the video and subscribe for extra content material. For extra info, head to hotelmomentpodcast.com. The Lodge Second podcast is introduced by Revinate.
