Intro/Outro – 00:00:02: Welcome to The Resort Second podcast, introduced by Revinate, the podcast the place we speak to leaders within the hospitality trade. Should you’re searching for tendencies, views, and tales from leaders in journey and hospitality, you’re in the best place.
Karen – 00:00:22: Hiya, and welcome to The Resort Second podcast. I’m your host, Karen Stephens, the Chief Advertising and marketing Officer of Revinate. And immediately, we’ve 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 useful 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 marketing, and Income Optimization. In truth, Kathleen has additionally written a e book, which is titled Evolving Dynamics from Income Administration to Income Technique, which can be out there by 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 recognized 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 Resort Group convention. They’ve their annual convention yearly.
Kathleen – 00:01:20: Sure.
Karen – 00:01:20: In order that’s truly an excellent place to begin. So that you’re the EVP at PTG Consulting. So you may inform us how that’s linked to Most well-liked Resort Group.
Kathleen – 00:01:28: Yeah, nice query. So through the years, the corporate has advanced from pure resort manufacturers providing smooth model providers — gross sales, advertising and marketing, income — to motels searching for 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 advanced the corporate from pure resort manufacturers to resort 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 every part that PTG does helps impartial motels. So we work with Most well-liked Accommodations, Historic Accommodations, Past Inexperienced Accommodations. However we additionally work with non-affiliated motels. So we might help any resort it doesn’t matter what their affiliation is.
Karen – 00:02:28: Oh, nicely, that’s nice to know. So clearly, Most well-liked Resort Group has an exquisite portfolio.
Kathleen – 00:02:32: Sure. Very fortunate to work with among the finest within the trade.
Karen – 00:02:36: Nevertheless it’s so good to know that should you’re an impartial resort on the market and you desire to some consulting providers, that’s out there to you.
Kathleen – 00:02:43: Yeah. And we provide income administration providers, gross sales, PR, and we’re fully impartial to Most well-liked Accommodations. So anyone can come to us for these providers.
Karen – 00:02:56: So that you’re capable of leverage quite a lot 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 a little bit 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 faculty. And I truly 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 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 individuals watching, however I additionally liked how the resort interacted with their prospects. 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 the ranks. So, the place did you progress from there? How did you get, clearly, EVP immediately, 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 at all times 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 in an effort to optimize their enterprise — run their enterprise. After which I used to be fortunate sufficient to be mentored by a pair individuals on this factor that was referred to as yield administration. Again on the time, no one actually knew what it meant, however I had some superb mentors that actually skilled me. That led me into the world of income administration that I simply fell in love with. And it encompassed every part from reservations crew, entrance desk crew, 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 answerable for income and distribution, in addition to concerned in a whole lot of 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 begin up the hospitality portion of PTG Consulting.
Karen – 00:05:28: Of the consulting. Yeah, and I like that you just type of gave the context of your background there, as a result of I do suppose it’s so vital. 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 thought of a day within the life should you’re employed in by this impartial to come back 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 scale back their prices by a pair share factors, what’s the low-hanging fruit if 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 at all times speak about is having a look at what you do have immediately, and the way you might be utilizing your know-how to course of info backwards and forwards, and the best way to 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 isn’t well-suited for his or her wants. So it’s understanding the best way to use that know-how and optimize it. Then there’s additionally how you’re employed collectively as a crew. So is the income skilled working nicely with the gross sales crew, and the advertising and marketing crew, and the entrance desk crew? In order that collaboration to actually concentrate on full business technique. And plenty of motels nonetheless go after quantity versus optimum alternative. And so that’s actually the place you may get into it. It’s a little bit bit extra advanced, requires much more dialogue, much more analysis. However having a look 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 means of taking a look at it. So not each piece of enterprise is a bit of enterprise that you just 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 attempting to determine the way you shift. So when a resort says, “Kathleen, we’d like extra direct bookings, what can we do?” As a result of that’s going that can assist you with a few of that value. So what’s type of you’re like, “Hey, that is how we begin fascinated by direct bookings?”
Kathleen – 00:07:46: Yeah. So direct bookings are crucial. Many occasions we’re investing within the OTAs, for instance, or third-party bookings, and we’re doing advertising and marketing by them. Why not make investments these advertising and marketing {dollars}, those self same {dollars} that you just’re at present 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 client database that you just do have? There’re many alternative choices from digital advertising and marketing the place you have to be investing your cash, be sure that your website positioning is optimized, your PPC is lined up together with your methods and campaigns that you just wish to drive. A number of this stuff don’t require big quantities of funds. And should 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 rather a lot additional.
Karen – 00:08:40: Effectively, and I feel it’s nice when individuals can rent a marketing consultant. Like should you’re on the market and also you suppose, “Okay, we’re a small crew. We don’t actually understand how to do that.” I feel there are organizations like PTG that may are available in and say, “Hey, as a result of should you’re doing rather a lot, your combine is heavy in OTAs.”
Kathleen – 00:08:54: Yeah.
Karen – 00:08:54: That’s a whole lot 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 feel typically hoteliers have to suppose, “If I reinvest in know-how or a consulting dedication and get the device 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 plenty of occasions individuals 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 just’re spending in that fee that you just 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 just’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 rather a lot. So should you’re writing a giant fats fee test, swiftly 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 understand what you see that’s within the fee, not within the markup.
Kathleen – 00:09:50: Precisely. Precisely. And you’ll truly be doing very nicely in your star report, which is consultant of high line, however should you’re not taking a look at 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 like that. I like that shift. And I like that we’re speaking about that immediately, right here. And should you’re not — you’re listening to this podcast, and we’re within the room. The place can individuals go to seek out? I do know that there’s a whole lot of sources which might 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 a whole lot of documentation.
Kathleen – 00:10:27: Yeah.
Karen – 00:10:28: So what’s your advice 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 achieved an outstanding job in synthesizing the information for a lot of resort manufacturers. And they also have a whole lot of information the place they’re trying on the backside line profitability. And so they have a whole lot 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 not too long ago launched the place it’s a full business technique evaluation, I feel is what it’s, that you may truly go in and assess your individual resort to see the place you might be that may very well be attention-grabbing.
Karen – 00:11:12: I find it irresistible. 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 may 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: Enable you 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 speak a little bit 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 find it irresistible. You’re keen on the visitor expertise. However how does making a data-driven tradition improve that and make it even higher?
Kathleen – 00:11:50: Sure, you may have a look at all the information that you really want, however should you’re not creating the best tradition, and also you’re not having a look on the buyer suggestions and understanding what the client needs and what they’re telling you, then all that information isn’t actually going to matter since you’re going to lose that buyer. Today, that buyer expertise and buyer communication is so vital. And there’s many applied sciences on the market that assist assist that fixed communication. Whether or not it’s pre-arrival all the best way to once they’re on website.
Karen – 00:12:22: Okay, so it’s gathering the information, after which it’s ensuring as a crew 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 crew collectively? As a result of I think about, nicely, 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 specific 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 rather a lot. And we talked a little bit bit about STAR studies and comp units. And when you consider a comp set on a STAR report, you’re fascinated by motels which might be native to you which might be comparable in STAR score, and so on. However actually, I feel what we’re seeing extra as we get an increasing number of digital on the market, the place are motels actually competing? Like, you understand, if it’s summertime and also you’re a resort, is there any taking a look at your comp set in your neighborhood or how do you have to be fascinated by that?
Kathleen – 00:13:18: Yeah, that’s a very good query. And it’s undoubtedly a path 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 our major comp set, some individuals have secondary, some individuals have tertiary, some individuals have aspirational, and people are all nice. However what I at all times advocate 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 in your group alternatives? Who do you compete towards for your enterprise journey alternatives? Who do you compete towards in your leisure or luxurious, tremendous high-end luxurious leisure? And people must be the rivals that you just’re having a look at for every section 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: Most definitely they’re not. A few of them may be, however many may not be.
Karen – 00:14:20: Should you’re searching for a seashore vacation spot, you don’t know. I’m going to Miami. You don’t know the place that shopper is coming in. So I feel that we’ve seen a whole lot of visitors that come on the podcast — we speak about how vital experiences are, ensuring that your web site actually displays the native space, all of the issues that may be achieved. So it’s means past that. So yeah, that’s an excellent factor. Clearly, we do a whole lot of leisure. We take into consideration the leisure section rather a lot at Revinate. However I hadn’t thought of that for group, and company, and any piece of enterprise.
Kathleen – 00:14:50: Each single section – tour operators. There’s so many alternative segments that you may 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 section. Mirror that in your communication out to the shoppers, together with your web site. But additionally don’t overlook about your reservation gross sales division as a result of they’re crucial in understanding the best way to speak with a enterprise traveler versus a bunch traveler versus luxurious leisure traveler. These are fully totally different types of communication.
Karen – 00:15:27: And so they’re going to need totally different facilities in your property. So it is advisable understand how 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 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 date out of this 12 months 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 the 12 months?
Kathleen – 00:15:56: Effectively, I feel, I don’t know if this can be a new thought, 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 in your explicit resort, provided that new idea, I’ll name it, that you just’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 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 up to the mark on the trade? Are there any information retailers or thought leaders or, you understand, 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: Initially, it’s studying on-line publications, but additionally 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 a fantastic 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 Resort Second podcast. Ensure that to subscribe wherever you hearken to podcasts. And should you’re watching on YouTube, please just like the video and subscribe for extra content material. For extra info, head to hotelmomentpodcast.com. The Resort Second podcast is introduced by Revinate.
