Intro/Outro – 00:00:02: Welcome to The Lodge Second podcast, introduced by Revinate, the podcast the place we speak to leaders within the hospitality trade. For those who’re in search of developments, views, and tales from leaders in journey and hospitality, you’re in the suitable place.
Karen – 00:00:22: Hey, and welcome to The Lodge Second podcast. I’m your host, Karen Stephens, the Chief Advertising Officer of Revinate. And immediately, we’ve got the pleasure of internet hosting Kathleen Cullen, who’s the Government Vice President at PTG Consulting. With over 25 years of expertise within the hospitality trade, Kathleen brings beneficial insights into maximizing profitability and enhancing visitor expertise throughout numerous resort segments. Kathleen’s contributions to hospitality have been well known, incomes her one of many prestigious awards at HSMAI, Prime 25 Extraordinary Minds in Gross sales, Advertising, and Income Optimization. In actual fact, Kathleen has additionally written a ebook, 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 completely happy to have you ever right here. We’ve identified one another for a very long time.
Kathleen – 00:01:13: Sure, we met in Boston, I feel.
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 really an excellent place to start out. So that you’re the EVP at PTG Consulting. So you possibly can inform us how that’s related to Most well-liked Lodge Group.
Kathleen – 00:01:28: Yeah, nice query. So over time, the corporate has advanced from pure resort manufacturers providing mushy model providers — gross sales, advertising and marketing, income — to motels in search of some platform in these areas. And about 5 and a half years in the past, the Ueberroth’s, who’re the house owners of now, known as Most well-liked Journey Group, they advanced the corporate from pure resort manufacturers to resort manufacturers plus consulting manufacturers. And we’ve got 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 every little thing that PTG does helps unbiased motels. So we work with Most well-liked Motels, Historic Motels, Past Inexperienced Motels. However we additionally work with non-affiliated motels. So we may help any resort it doesn’t matter what their affiliation is.
Karen – 00:02:28: Oh, properly, that’s nice to know. So clearly, Most well-liked Lodge Group has a gorgeous portfolio.
Kathleen – 00:02:32: Sure. Very fortunate to work with a few of the greatest within the trade.
Karen – 00:02:36: However it’s so good to know that in the event you’re an unbiased resort on the market and you desire to some consulting providers, that’s accessible to you.
Kathleen – 00:02:43: Yeah. And we provide income administration providers, gross sales, PR, and we’re utterly unbiased to Most well-liked Motels. So anyone can come to us for these providers.
Karen – 00:02:56: So that you’re in a position to leverage a wide range of know-how platforms and do no matter that resort wants.
Kathleen – 00:03:01: No matter that resort makes use of.
Karen – 00:03:02: Okay. Very cool. So are you able to inform us slightly bit about your journey so far 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 really ought to again up. I grew up being obsessive about motels. I used to be very fortunate early on in my life the place my household took us touring world wide very often, and we went to lovely locations. And as a younger lady – teenage — I beloved sitting within the foyer and simply watching the operations — what was taking place. Cherished the folks watching, however I additionally beloved how the resort interacted with their clients. So, I had an attraction to it method 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 immediately, however what was form 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 resort actually works, and what hoteliers want with the intention 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 known as yield administration. Again on the time, no person actually knew what it meant, however I had some wonderful mentors that basically educated me. That led me into the world of income administration that I simply fell in love with. And it encompassed every little thing from reservations group, entrance desk group, the know-how that we used, and the way we use that know-how, all the best way to what charges must be set, stock administration, working with the gross sales division for his or her alternatives, and optimizing all of these totally 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 numerous new resort 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 start out up the hospitality portion of PTG Consulting.
Karen – 00:05:28: Of the consulting. Yeah, and I really like that you simply form of gave the context of your background there, as a result of I do suppose it’s so essential. Each resort has totally 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 unbiased to come back in and tackle 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 while you go right into a resort, if there’s 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 likely one of the first issues that I all the time speak about is looking at what you do have immediately, and the way you might be utilizing your know-how to course of data forwards and backwards, and the way to use it to trace your data. In order that’s one. That’s, to me, low-hanging fruit. As a result of many individuals use know-how in a method that isn’t well-suited for his or her wants. So it’s understanding the way to use that know-how and optimize it. Then there’s additionally how you’re employed collectively as a group. So is the income skilled working properly with the gross sales group, and the advertising and marketing group, and the entrance desk group? In order that collaboration to actually concentrate on full business technique. And lots of motels nonetheless go after quantity versus optimum alternative. And so that’s actually the place you may get into it. It’s slightly bit extra advanced, requires much more dialogue, much more analysis. However looking at not simply quantity, the place you may get your highest quantity, however what’s your most worthwhile alternative?
Karen – 00:07:17: Wow. Okay. So that’s actually the core of business technique, which I feel is so cool, and simply because it’s only a totally different method of 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 resort says, “Kathleen, we want extra direct bookings, what will we do?” As a result of that’s going that can assist you with a few of that price. So what’s form of you’re like, “Hey, that is how we begin desirous about direct bookings?”
Kathleen – 00:07:46: Yeah. So direct bookings are vital. Many occasions we’re investing within the OTAs, for instance, or third-party bookings, and we’re doing advertising and marketing by way of them. Why not make investments these advertising and marketing {dollars}, those self same {dollars} that you simply’re at the moment 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 and marketing the place you ought to be investing your cash, be sure your website positioning is optimized, your PPC is lined up along with your methods and campaigns that you simply wish to drive. Loads of this stuff don’t require big 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 feel it’s nice when folks can rent a guide. Like in the event you’re on the market and also you suppose, “Okay, we’re a small group. We don’t actually know the way to do that.” I feel there are organizations like PTG that may are available 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 numerous comm-ish.
Kathleen – 00:08:56: Loads.
Karen – 00:08:56: That’s some huge cash sitting in that bucket.
Kathleen – 00:08:58: Yeah.
Karen – 00:08:59: And I feel typically hoteliers must suppose, “If I reinvest in know-how or a consulting dedication and get the software set –
Kathleen – 00:09:05: Sure.
Karen – 00:09:06: …to know, take into consideration as a advertising and marketing price range and shift it –
Kathleen – 00:09:10: Proper.
Karen – 00:09:10: …then the payoff goes to come back.”
Kathleen – 00:09:12: Completely. And lots of occasions folks suppose simply investing it within the third get together is a straightforward win. Sure, it’s a straightforward 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 maintaining that cash. You’re not really 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 a giant fats fee test, 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 what you see that’s within the fee, not within the markup.
Kathleen – 00:09:50: Precisely. Precisely. And you may really be doing very properly in your star report, which is consultant of high line, however in the event you’re not your backside line, the profitability, the NOI, then that’s a giant alternative for a lot of motels to actually begin specializing in that.
Karen – 00:10:09: Yeah. I really like that. I really like that shift. And I really like that we’re speaking about that immediately, 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 numerous sources which can be beginning to come collectively on the market. We talked about HSMAI. We simply needed to speak to Jennifer Hill, who’s on one other podcast.
Kathleen – 00:10:26: Nice.
Karen – 00:10:26: Who’s put collectively numerous documentation.
Kathleen – 00:10:27: Yeah.
Karen – 00:10:28: So what’s your suggestion for anyone who may be listening to get educated on this technique?
Kathleen – 00:10:33: Effectively, I feel one of many leaders on this space is Kalibri Labs. They’ve accomplished an exceptional job in synthesizing the information for a lot of resort manufacturers. And they also have numerous information the place they’re wanting on the backside line profitability. And so they have numerous expertise in serving to to start out that dialog. What you ought to be doing internally? HSMAI is one other nice useful resource. They’ve a full publication not too long ago launched the place it’s a full business technique evaluation, I feel is what it’s, that you could really go in and assess your individual resort to see the place you might be that may very well be fascinating.
Karen – 00:11:12: I like 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 can assist you get there.
Karen – 00:11:22: Allow you to get there. That’s proper. So a quote that I learn of yours that I really 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 speak slightly bit about how a data-driven tradition, proper? We take into consideration visitor expertise, which is the contact with the visitors. It’s why you bought into hospitality since you like 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 suitable tradition, and also you’re not looking on the buyer suggestions and understanding what the shopper needs and what they’re telling you, then all that information shouldn’t be actually going to matter since you’re going to lose that buyer. Today, that buyer expertise and buyer communication is so essential. And there’s many applied sciences on the market that assist help that fixed communication. Whether or not it’s pre-arrival all the best way to after they’re on web site.
Karen – 00:12:22: Okay, so it’s accumulating the information, after which it’s ensuring as a group 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 properly? Get the entire group collectively? As a result of I think about, properly, you inform me, however I might assume that each resort presents its personal set of issues that may very well be optimized.
Kathleen – 00:12:39: Yeah, oh yeah. Each single shopper, each resort, each tradition is totally different. So it’s actually understanding what’s working and what isn’t working for that exact resort.
Karen – 00:12:50: For that resort. 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 reviews and comp units. And when you consider a comp set on a STAR report, you’re desirous about motels which can be native to you which can be comparable in STAR score, and many others. However actually, I feel what we’re seeing extra as we get increasingly more digital on the market, the place are motels actually competing? Like, , if it’s summertime and also you’re a resort, is there any your comp set in your neighborhood or how do you have to be desirous about that?
Kathleen – 00:13:18: Yeah, that’s a very good query. And it’s undoubtedly a course that we have to begin transferring 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 got our major 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 motels is check out what your alternative is and create a comp set from there. So for instance, and this can be a simplified instance, however who do you compete towards on your group alternatives? Who do you compete towards for your enterprise journey alternatives? Who do you compete towards on your leisure or luxurious, tremendous high-end luxurious leisure? And people must be the rivals that you simply’re looking at for every phase of that enterprise and seeing what you may get from every of these.
Karen – 00:14:14: And they won’t be in your market.
Kathleen – 00:14:16: More than likely they’re not. A few of them may be, however many may not be.
Karen – 00:14:20: For those who’re in search of a seaside vacation spot, you don’t know. I’m going to Miami. You don’t know the place that client is coming in. So I feel that we’ve seen numerous visitors that come on the podcast — we speak about how essential experiences are, ensuring that your web site actually displays the native space, all of the issues that may be accomplished. So it’s method past that. So yeah, that’s an excellent factor. Clearly, we do numerous 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 that you could really slim down. After which I might even take it a step additional and just remember to perceive the place these alternatives are — who these rivals are per phase. Mirror that in your communication out to the purchasers, together with your web site. But additionally don’t overlook about your reservation gross sales division as a result of they’re vital in understanding the way to speak with a enterprise traveler versus a gaggle traveler versus luxurious leisure traveler. These are utterly totally different types of communication.
Karen – 00:15:27: And so they’re going to need totally different facilities in your property. So you should know the way to try this. Okay, so a few closing questions for you. So this can be a enjoyable one. So we’re in April. We’re already partially by way of the 12 months. Any key classes? I imply, yearly is totally different popping out of COVID. And it’s transferring quick.
Kathleen – 00:15:44: Yeah.
Karen – 00:15:44: So have you ever had any massive classes which have come to this point out of this 12 months that you can imagine or something that’s come on this summer season? Like, what are your predictions of what 2024 goes to appear to be as we transfer by way of the 12 months?
Kathleen – 00:15:56: Effectively, I feel, I don’t know if this can be a new concept, however I feel motels are nonetheless grappling with the ADRs that they had been getting for a few years in comparison with the ADRs that they’re getting now. And issues have undoubtedly stabilized. So it’s determining methods to just remember to can maintain fee with out shedding all of that enterprise to motels which have lowered their fee. So I feel a giant one is knowing your fee technique. After which, once more, simply determining what’s the alternative on your explicit resort, 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 go away 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 feel 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 ultimate query for you. What do you do to maintain in control on the trade? Are there any information shops or thought leaders or, , the place do you discover your sources while 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: Firstly, it’s studying on-line publications, but additionally coming to conferences like NAVIGATE. These are invaluable due to the networking, the concepts trade, the audio system sharing data. 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 ideal place to finish it. So thanks, Kathleen. I actually recognize 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 Government 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 sure 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 data, head to hotelmomentpodcast.com. The Lodge Second podcast is introduced by Revinate.