new england hotel magazine

New England HotelMagazine

a Publication For Hospitalityexecutives

January/February 2009

Stowe Mountain Lodge Stowe, Vermont

TechnologyMobile Marketing Is on the Horizon

Installing a Flexible Wireless Network

What Is Electrolyzed Water?

PlusSpa Trends

Contents • January/february 2009

Spa Healing Lodge, Stowe Mountain Lodge, Stowe, Vermont

Publisher & editorTimothy J. DeFeo

e xeCutive direCtor of MarketingWilliam Heck

advertising sales ManagerPaul Moschella

CirCulation ManagerShaun McMorrow

graPhiC designerEileen Zornow

advisory board Jonathan A. LhoweCarl E. LindbladeDavid Troy

for all advertising inquiries, please contact Paul Moschella, advertising sales Manager, hajar & associates. Tel. 781-769-8950 Fax [email protected] web site: www.nehmag.com

for all letters to the editor, editorial submissions and subscription information, please contact timothy J. defeo, Publisher & editor, [email protected]

the circulation of new england hotel Magazine is researched, documented and managed by Meinrad lP. 29 Crafts st., suite 570, newton, Ma 02458 Tel. 617-964-5775 www.meinrad.com

new england hotel Magazine is published by defeo Media 6 times per year. all rights reserved. any reproduction without express permission of the publisher is strictly forbidden.

Technology

4 Building a Flexible Wireless Network how boston’s lenox hotel created its technology framework. By Sean T. Gorman

13 Mobile Marketing Is on the Hospitality Horizon Personal hand-held devices will soon create a new marketing platform.

Departments

2 Insider News

16 Going Green electrolyzed water revolutionizes housekeeping and food service. By Patrick Lucci

19 revenue Management What is a revenue manager’s core skill set? By Michael Oshins

Plus

6 The Tipping Point an update on tip issues in light of recent decisions. By David W. Robinson 9 Spa Trends the wellness and lifestyle approach comes to new england.

2 | New England Hotel Magazine | January/February 2009

MaSSacHuSETTS

The Ocean Edge Resort & club in brewster will open the bayside ballroom in March 2009. the 5,000-square-foot ballroom will be the largest meeting venue on Cape Cod. designed by niemitz design group inc. and Cambridge seven associates of Cambridge, Mass., it is part of a $19.5 million renovation project.

the new 150-room Fairmont Hotel recently opened within boston’s battery Wharf project. a restaurant and 18,000-square-foot spa are slated for completion this year. development Management Corp. developed the project; skanska buildingusa was the builder; rbW llC owns the develop-ment, which includes 104 condos.

MaINE

The White Barn Inn, kennebunkport, completed the renovation of guest-rooms in the Main inn building. built in the 1860s, and in operation since 1973, the property offers 26 rooms & suites.

ReFlagging & new OwneRship

MaSSacHuSETTS

a controlling interest in the new Mandarin Oriental, Boston has been sold to a group of investors, repre-sented by anglo irish bank Corp., by robin brown and stephen r. Weiner. the sale included the 148-room hotel, restaurant, retail space and 35 rental apartments. fifty condomini-ums were not part of the transaction. NEW HaMPSHIRE

Mount Sunapee Resort, newbury, and vermont’s Okemo Mount (along with Colorado’s Crested butte) were sold to Cnl lifestyle Properties, a florida-based real estate trust. the $132 million deal is a sale-leaseback,

leaving the day-to-day operations with tim and diane Mueller.

awaRds & hOnORs

MaINE

The Fairfield Inn & Suites, augusta earned the state of Maine environmental leader Certification. the property was the first of its kind to open with the interior design package titled “green tea.” Maine Course hospitality group owns/operates the property.

MaSSacHuSETTS

starwood hotels & resorts Worldwide flagship, Element Lexington Hotel, is the first starwood hotel to earn gold certification from the u.s. green building Council’s leadership in energy and environmental design (leed) program, and the first hotel in Massachusetts to achieve this rating.

two gold key awards for excellence in hospitality design were award-ed to the new york City-based Champalimaud firm in the catego-ries of best hotel design and lobby/reception for its work on The Liberty Hotel, boston. the awards were presented at the 2008 international hotel/Motel & restaurant show.

the arc of Massachusetts has cho-sen to honor The Doubletree Guest Suites Boston/Waltham with the 2009 distinguished Citizen award. the award recognizes a significant contribution to individuals with intellectual and developmental dis-abilities. on the state level, the arc of Massachusetts represents 120,000 people with developmental disabilities and has 21 affiliated local chapters.

RHODE ISLaND

the rhode island hospitality

association bestowed its stars of the industry awards at its annual Meeting. Mark Gervais, gM of the hotel viking in newport, was named hotelier of the year. Dave Muller, manager of business devel-opment for hallsmith sysco food services in norton, Mass., received vendor representative of the year.

The Providence Warwick convention & Visitors Bureau received accredita-tion from the destination Marketing association international. the pro-gram has accredited 68 Cvbs.

VERMONT

the vermont department of environmental Conservation and the vermont small business development Center partnership has designated okemo Mountain resort’s Jackson Gore Inn in ludlow as a green hotel. n

cONNEcTIcuT

hei hotels & resorts, based in norwalk, has appointed Brian Mayer as senior vp of operations. he spent nearly 10 years with starwood hotels & resorts, most recently as vp of operation innova-tion and support, north america.

the Marriott hartford downtown has hired James Rybak as director of restaurants, which includes the Crush lounge and vivo seasonal

trattoria restaurant. he was most recently gM of fred & steve’s steakhouse, twin river Casino, lincoln, r.i. rybak also served as gM at the old lyme inn in Connecticut, and was the showroom manager at foxwoods Casino.

Michael Mackenzie has been hired as the gM at the hampton inn hartford-airport hotel in Windsor. he had been serving as the assis-tant gM of the residence inn in rochester, n.y., for the past year. Mackenzie had also worked for eJ delMonte Corp. in rochester for their portfolio of Marriott hotels. the 110-room property is owned/oper-ated by buffalo lodging associates.

MaSSacHuSETTS

the liberty hotel in boston has two new executives. James Treadway, founder/Ceo of MtM luxury lodging, which owns the property, has assumed the title of managing direc-tor. treadway first began his career at his family’s business, treadway inns.

he spent 19 years with Westin, serv-ing as president for four years. in 1995 he left Westin to start MtM luxury lodging. Rachel Moniz has been appointed hotel manager. she has worked at the sheraton boston, the st. regis in aspen, the W san diego as director of operations, and the ivy hotel in san diego as hotel manager.

Roger P. Sonnabend, who with his family members developed the sonesta international hotels Corp., recently passed away at the age of 83. holding the position of executive chairman of the board, sonnabend was a long-time resident in the boston area. the international chain, which includes the royal sonesta, is based in boston.

Mark Fallon has been appointed gM of the 599-room hilton boston logan airport hotel. he most recently served with Pyramid hotel group as area manag-ing director & gM of the

hilton stamford hotel and executive Meeting Center in Connecticut.

the hyatt regency boston appointed chris Giovanetti to the position of director of sales and marketing. he most recently held the same title at the hyatt regency Cambridge. Prior to that, giovanetti was at the hyatt harborside, as well as the hyatt in new york City and Washington, d.C.

NEW HaMPSHIRE

the roedel Companies, a hotel investment, construction and man-agement company based in Wilton, has hired Patricia Woodworth as corporate comptroller. she most recently handled all accounting responsibilities for multiple il fornaio Corp. restaurants in California.

RHODE ISLaND

the rhode island hospitality education foundation has hired Lauren Kelleher-Mahoney as marketing/communica-tions coordinator. she was previously at Media Matters for america.

cOnstRuctiOn & RenOvatiOn

cONNEcTIcuT

The Trumbull Marriott recently completed a $10 million renovation of its ballroom, meeting spaces and guest rooms. the property features a 6,534-square-foot grand ballroom that accommodates 700 people, and 18,000 square feet of meeting space broken up into 17 meeting rooms.

The Holiday Inn Select in Stamford opened after $20 million in renova-tions. the hotel features 20,000 square feet of meeting space and a full-service business center. davidson hotel Co., the tennessee-based manager, is the joint venture owner with ohio-based rockbridge Capital. they purchased the property from felCor lodging trust last year.

the 108-room Hampton Inn Enfield hotel recently opened. the hotel also offers 900 square feet of meet-ing space. it is owned/operated by buffalo lodging associates.

MaINE

a new 100-room Residence Inn by Marriott in auburn is nearing comple-tion. auburncourt llC is developing the $7.8 million project; Pro Con inc., Manchester, n.h., is the architect/construction management firm. the 4-story, 75,000-square-foot hotel reflects a new generation of residence inn with exterior stone veneer, gable windows and cathedral ceilings in the gatehouse and pool areas.

insider news

New England Hotel Magazine | January/February 2009 | 3

James Rybak

Mark Fallon

peOple On the MOved

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While most of the bells and whistles were bypassed during the value engi-neering stage of development, they can easily be added at any point.

because it supports vlans, network services and data can be parceled as needs dictate. for instance, the portal through which guests connect to the network can be customized in minutes for business meetings, conferences and groups and separated from the primary portal. the hotel can also establish a

Qos-enabled vlan that supports voiP phones for administrative, housekeep-ing and maintenance purposes.

the network’s use of standards-based Poe allows a variety of devices and switches to be employed. for exam-ple, wireless security cameras can be added to the existing security sys-tem—through a vlan on the wireless network—for areas where wiring is problematic.

“the hotel was built in 1900 and is

made of terra cotta, so wiring is a huge issue,” says Malenfant. “With vlan support and Poe, our wireless network opens up a number of possibilities.”

he has explored the prospect of in-room devices that link to the wireless network to control temperature, light-ing and drapery. but these are consider-ations for the months and years ahead, when economies settle and wish lists are once again within reach. for now, the lenox is quite happy to have a reli-able wireless network that is primed for the mobile future. n

Sean T. Gorman is president/CEO/founder of Safety NetAccess Inc., based in Rockland, Mass. The firm is a leaing national high-tech solutions company that provides a broad range of technology products and services. Gorman can be reached at: 781-871-9126 or at www.safetynetaccess.com.

this doesn’t mean service degradations are acceptable or progress should be halted. rather, it merely means priorities need to be realigned and belts must be tightened. successful properties will be those that push forward while adjusting to the current conditions.

the lenox hotel in boston’s historic back bay provides a timely example. “our 214-room luxury boutique hotel offers the perfect complement of old World charm and modern technology,” boasts the main page of the hotel’s Web site. Considering the swift, relentless pace of technological innovation, stay-ing modern is a demanding and ongo-ing process.

the lenox deployed a rudimentary wireless network in 2003 that was pri-marily intended for casual users and vacationers. over time, performance lim-itations and a lack of flexibility became insufficient for an award-winning hotel that prides itself on guest services.

the wireless network had difficulty supporting a growing number of busi-ness users, many of whom were tak-ing advantage of the hotel’s conference spaces. it was also negatively impacted by outside interference, such as the wireless network at the adjacent boston Public library.

“first and foremost, we needed to deliver reliable performance for our guests,” says John Malenfant, director of information technology for the saunders hotel group, which owns the lenox. “but we were also looking to expand our capabilities and take our wireless infrastructure to the next level. the old network wasn’t horrible, but there was only so much we could do with it.”

the network couldn’t support virtual local area networks or vlans, he explains. voice over internet Protocol (voiP), Quality of service (Qos) and Power over ethernet (Poe) were also beyond the network’s capabilities. With no centralized management, net-work administration was a hassle. and because the access points couldn’t be combined with external antennas, there was no way to confront the mounting interference problems.

like a child in a candy store, Malenfant perused the latest wireless technologies and envisioned the possibilities. so many bells. such cool whistles. unfortunately,

his wish list was in contrast to the reality of his means. the economic downturn had hit and budgets everywhere were being cut.

“We couldn’t do everything, but we couldn’t stick with the status quo either,” Malenfant explains. “We had to find a way to implement a new wireless network without breaking the bank. at the same time, we didn’t want to mortgage the future and be forced to rip and replace it all in another handful of years.”

for these reasons, the notion of a “value engineered” wireless network came to the fore. this type of network is a foundational platform that delivers necessary functionality now and can easily be expanded in the future. the lenox commissioned safety netaccess, which specializes in core networks for hotels, such as high-speed guest net-works that integrate with back-office systems to build and manage the new wireless infrastructure. hP ProCurve networking technologies, including 42 ProCurve MsM310-r access Points, were selected as the primary building blocks of the network.

there is nothing overly flashy about the lenox’s new wireless network. its beauty lies in its inherent flexibility.

4 | New England Hotel Magazine | January/February 2009 New England Hotel Magazine | January/February 2009 | 5

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Preparing for the Mobile Future In the cash-Strapped Present

Its beauty lies in its inherent flexibility.

By Sean T. Gorman

how boston’s lenox hotel developed a flexible, up-to-date technology framework.

the current economic downturn is certainly not relegated to the housing and credit markets. ask any hotelier, and they will tell

you leisure and business travel are down, and bottom lines are being hit.

After initially installing a wireless network just six years ago, The Lenox Hotel in Boston needed to find a more robust, flexible system that could handle the increased workload.

6 | New England Hotel Magazine | January/February 2009 New England Hotel Magazine | January/February 2009 | 7

recent cases highlight the risk that any service industry business could be susceptible to violations of the tip pool-ing statute, sometimes without even having a “tip pool.” for example, Canyon ranch in lenox, Mass., a luxury spa, recent-ly agreed to pay $14.75 million to its massage therapists, yoga teachers, estheticians, hair stylists and other employees rendering services to the resort’s patrons. allegedly, Canyon ranch required its patrons to pay a “ser-vice charge” and did not pay all of the service charge to the service employees.

in a similar case last april, a Massachusetts federal court judge ordered american airlines to pay $325,000 to its sky-caps for falling to turn over to them the $2 per bag charge for curb side check in. finally, starwood hotels recently has been sued by its employees for including a service charge for banquet functions and failing to distribute all of the service charge to its service employees. these cases highlight the need for all service industry employers to review their charg-

ing policies and practices to patrons even if they do not have a tip pool.

tip pooling is the practice of taking gratuities received from patrons and either pooling all or a part of the gratuities to be distributed to other employees. under Massachusetts

law, an employer may distribute pooled tips only to employees who are categorized as “ser-vice employees.” such employees are gener-ally defined as those ally defined as those persons who (i) serve beverages or prepared

food directly to patrons, (ii) clear patrons’ tables, (iii) prepare beverages for patrons to be served by another employee, or (iv) provide service directly to customers in a position in which one customarily receives tips (such as coat check employees), and who do not have any managerial responsibilities.

under Massachusetts law, if an employer chooses to add a service charge to a customer’s bill (as opposed to permitting the customer to leave a discretionary gratuity), they must distribute all proceeds of that service charge to the service

By David W. Robinson

An update on tip issues in light of recent decisions.

The Tipping Point

Tipping Point

Tipping

The best practice is simply to explain what the charge is for in

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Since the inception of the

Massachusetts tip pool-

ing statute, many of the

enforcement and private actions

have been focused on the restau-

rant industry. in 2004, however, the

tip pooling statute was amended

to expand its applicability from just

f&b servers to all service industry

employees who traditionally have

received tips.


employees in proportion to the service provided by those employees.

businesses may impose a “house” or other administrative fee in place of a service charge and retain or distribute that fee at its discretion. however, the employer must carefully identify the fee as administrative so that it is evident to

customers that the fee is not a gratuity or tip that will be distributed to service employees. fees that are ambiguously described—whether intentionally or innocently—will be treated as service charges that must be remitted to the employee.

the failure to specifically or sufficient-

ly describe the house or administrative fee is often where a service industry employer can find itself in trouble. the best practice is simply to explain what the charge is for in writing to the cus-tomer. additionally, a service charge cannot be shared with employees with managerial responsibilities, even if they provide service similar to the service providers.

Managerial personnel must be aware that they cannot retaliate against or discipline employees for complaining about the tip pooling policies, even if there is no merit to the complaint. otherwise, the employer could be sub-ject to potential exposure for a retalia-tion claim.

employers should consider reviewing their policies and practices related to charges to patrons or instituting a writ-ten policy to be sure they are in compli-ance with the laws of their particular state. tip pooling practices vary in both application and substance from state to state. an experienced attorney of your choice should be consulted before insti-tuting or revising a tip pooling policy. n

David W. Robinson is an associate at the law firm of Ruberto, Israel & Weiner, based in Boston. His practice focuses on general commercial litigation. He can be reached at [email protected].

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Spa Trends

The wellness and lifestyle approach comes to New England.

A Mandarin Suite within The Spa at the newly opened Mandarin Oriental, Boston

the lifestyle approach has also created an instructional aspect to spas. if clients can take home and apply tech-niques, treatments and exercises learned at a spa or well-ness center, it equates to a much greater value than a tem-poral 60-minute massage. “When you change somebody’s life, they remember that,” concludes Colarossi. the goal is to develop goodwill and trust, which generates repeat business, he adds.

shore also sees her role as educational. “i am always interested in how to educate the public on their own awareness of their body.” the goal is to give them the ability and products “to do an upkeep on their body” after leaving the spa, says shore.

as the wellness trend developed, fitness increasingly drew more attention in spas design, programs and marketing. as a result, fitness trends have increasingly played a larger role within the spa industry. according to timothy leary, territory manager at new england fitness distributors in glastonbury, Conn., fitness equipment has strongly moved toward entertainment with either built-in tv screens, wireless systems, and the ability to use a personal entertainment player or iPod. “it is almost not an option,” says leary, describing the need for effectively integrating entertainment elements. but leary believes the fitness industry initially struggled trying to integrate the entertainment aspect, and he still sees some hotels

struggling with the selection, installation and upkeep process.

hotel fitness centers initially tried to mimic health clubs and build “selectorized circuits.” this type of equipment uses a machine for each body part, with the user typically seated and pressing against a fixed plane. but because space was limited, they were prevented from offering a full circuit. “it was a terrible idea,” concludes leary. “it is a half solution that doesn’t solve anything.” the fitness industry began moving toward “functional training” four years ago, and the vertical markets, like hotel facilities, eventually followed. functional training offers multiple exercises on each piece of apparatus that mirror realistic movement, a focus on core development training, and open space for floor and stability work.

Market MakeoverCatering the spa to the complete lifestyle also means a shift in marketing. “We cannot be doing just internal mar-keting to our guests,” warns dunphy, “we need to be mar-keting as a day spa.” and, that includes an emphasis on the local community and other nearby properties without spa facilities. While many spas have been open to the general public, they did not actively market to them. at stowe Mountain, 45% of the spa clients are non-hotel guests.

the trend toward extending a spa’s outreach has result-

T he proliferation of hotel spas continues as a strong and profitable trend across the country and new england. this area, while not well known for its spa offerings,

has had several large and small scale facilities come online within the past year.

While spas can make a significant bottom line contribu-tion, part of their success is inherently a matter of fashion—the latest treatments, products and techniques—and fashion can be fickle, even in the best of economic times. in a healthy financial environment, staying ahead of the spa curve is strenuous, but during an industry downturn as severe as this one, falling behind can be even more costly.

Where is the hotel spa industry headed? What are the major design and product trends across new england? What are the effective marketing and demographic plays in the region?

a major trend that is affecting spa design, programs and marketing is a shift toward “more of a lifestyle, incorporat-ing fitness and recreation,” says Maggy dunphy, director of the spa and Cooper Wellness at stowe Mountain lodge in vermont, which opened less than a year ago. at stowe Mountain, that has meant the integration of outdoor activ-ities; this is also apparent at other northern new england properties.

for dunphy, the complete lifestyle experience means providing amenities for guests for the entire day and keep-

ing them occupied. from a design perspective, the stowe Mountain spa added a relaxation area, where guests can read and unwind. dunphy believes that more design attention, including lighting, exterior views and furnish-ings, is being paid to these types of indoor areas. rochelle greayer, owner of greayer design associates, a landscape design firm in harvard, Mass., has also seen an interest in developing transitional areas that create a relaxing, calm-ing environment for guests waiting for treatments.

as the spa industry has shifted to an overall lifestyle and wellness approach, it has also meant a shift from indulgence and pampering to more healing, medicinal and energy treatments, according to glenn v. Colarossi, president of hospitality at Cybex international, a manu-facturer of exercise equipment based in Medway, Mass. this is partly a reflection of the aging baby-boomer demo-graphic.

according to sierra M. shore, spa director at Chatham bars inn on Cape Cod, which opened two years ago, the emphasis has moved toward wellness, with a focus on results-oriented offerings. for example, instead of aromatherapy, her spa provides an herbal poultice that includes the aromatherapy concept but leans more toward being a healing treatment. shore has also been offering alternatives to what is found at a medical office or medical spa, such as the spa’s dermal lift.

New England Hotel Magazine | January/February 2009 | 1110 | New England Hotel Magazine | January/February 2009

Stowe Mountain Lodge: (L) The Spa Healing Lodge (R) Fitness Center

Spa tents at The Chatham Bars Inn


Some hoteliers did not receive a crystal ball to see

the future of hospitality technology this past

holiday season. for those that did, a faint and

wispy image of “mobile marketing” is beginning

to take shape.

Mobile marketing is based on reaching consum-

ers through personal hand-held devices, primarily

cell phones or blackberrys. this technology will

become a new marketing medium for hotels, and

eventually part of guest service. how quickly it

will percolate through the industry

is dependent on several factors, but

it will begin to be adapted by hotel

venues in the near term.

Mobile Marketing

Hospitality HorizoniS on the

Improvements in technology and the proliferation of mobile devices will change guest service and marketing.

ed in products and treatments of a shorter duration and at a lesser price point, according to Colarossi. “Most of the spas, unless they are at a casino or a major resort, cannot sustain themselves just with hotel guests.” the hope was that the buying cycle of non-hotel guests could be short-ened, according to Colarossi, and this approach would increase return traffic.

dunphy sees what may be a new demographic trend in spas: groups of women in the age range of 35-50. she has seen a marked increase of women in this age group travel-ing to spas. Marketing for “women’s weekend” has been around for some time, but dunphy has seen a spike in the past six months and has been actively marketing to them.

the Chatham bars inn spa has tried to focus on seg-ments like the mother-daughter market and young girls. surprisingly, the men’s menus, like a facial and sports massage, have been some of the biggest hits at the spa, according to shore. the industry has had a difficult time capturing the male market. but her bookings of men who are monthly visitors for skin care has recently increased, as well as couples’ treatments.

there are other influential trends in the spa industry.

some spas are embracing an even more personalized approach by building self-contained units. the newly opened spa at Mandarin oriental, boston focuses on providing a personalized and private spa experience, according to sharon holtz, spa director. the spa offers the Mandarin suite, with over 700 square feet of space. the suite includes its own private heat experience—a stone sauna, vitality tub and rain shower—as well as a treatment and relaxation area.

the hospitality trend toward green and organic prod-ucts is also a natural fit for the spa industry. “People are looking for that,” says dunphy. for example, her spa uses sheets and robes by Pure bamboo, which are eco-friendly but maintain the very high spa-standard for comfort. although many of the organic spa products are expensive, guests respond positively to them, and retail sales are boosted. an emphasis on sustainability also “lessens the indulgence factor,” adds Colarossi, which may be another benefit in this economic environment where guests are no longer comfortable outwardly displaying any extrava-gance. n

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mobile device will require Web sites to be conducive to their limited capability, especially for the low-end phones. it will also need to incorporate the many reasons mobile searches are conducted. Mobile search could include clientele looking for the nearest property by brand, driving directions, or easy access to contact information.

from a marketing perspective, go trip will have the ability to use a hotel’s branding in all of its messag-ing. While companies like orbitz have had a mobile component, the screen Pilot model would allow a property to foster a “high-value, high-touch angle” directly with the guest to strengthen brand loyalty, according to dibble.

dibble has been able to gauge the reaction of the industry and gain a perspective on the imminent adop-tion of the technology through the introduction of his new product. on the corporate flag-level, management is focused on emerging technology, and is therefore more receptive. some international brands are working on communication and marketing that are compatible with mobile platforms that run on blackberrys and similar operat-ing systems. for the smaller properties and independents, “it is not on their radar right now,” says dibble. directors of sales and marketing are focused on bottom line improvements, and until this technology becomes more prevalent, it will not garner attention. “there is so much noise out there,” says dibble, referring to the large number of technology changes in the market that command attention. “in theory, every-one should be looking at the ‘acquisi-tion’ opportunities,” advises dibble. he believes the adoption differences are based on the type of customers. Properties with a heavy emphasis on business guests should be the first to consider its use, since business is the earliest adapter of the technology. for those with a dominant consumer clien-tele, they should be looking out over a 12 to 18 month horizon. n


as a full-fledged marketing and sales tool, mobile marketing has floundered in the fantasies of advertising agencies and tech startup’s Powerpoint presenta-tions. and, marketing folks have been patiently waiting for the underpinning technology to catch up to their vir-tual campaigns and theoretical appli-cations. over the next few years, the advances in smart phone technol-ogy, which offers graph-ics, faster speeds, bet-ter battery life, and gPstracking—at falling price levels—will proliferate the consumer mobile device market.

the hotel industry has only recently begun to employ mobile marketing, and those efforts have been very lim-ited. Mobile marketing penetrated the hospitality industry through the large resort casinos in las vegas, atlantic City and elsewhere, which introduced mobile texting to promote parties and special events in their nightclubs. Mohegan sun, in uncasville, Conn., began using mobile marketing this past fall for their nightclub, ultra 88.

the type of direct marketing or “push campaign” that Mohegan sun is using is classified as “acquisition” marketing, because the purpose is to “acquire” new customers or entice previous customers to return. according to shane neman, president of new york City-based york City-based y ez texting, which is providing the service texting, which is providing the service tto Mohegan sun, entertainment venues started using texting in 2006. as hotels began to see it successfully applied within their nightclubs, the hotels start-ed to employ it on the property’s Web site and collect cell numbers, whether they operated those venues themselves or used management outside firms.

“it has worked out great,” says Jason giuca, marketing manager of the lyons lyons lgroup Properties at Mohegan sun, the operator of the resort. he considers his use of mobile marketing as “another press tool.”

giuca has used several approaches to entice potential guests and collect telephone numbers. numbers are also

retrieved from the nightclub’s Myspace page and viP table reservations. for this most recent new year’s year’s y eve party, for example, giuca distributed small uv-coated cards that offered the chance to win a prize. When people responded to the texting number their contact information was retained. Collecting

text numbers can also be done in tan-dem with traditional print, radio and tvadvertising media.

neman considers mobile texting to be one of the most effective forms of advertising and communication, because it has several inherent advan-tages. first, it is more effective than email marketing, because spam has cluttered that medium. spam has not infiltrated texting, and neman does not believe it will become an issue, because texting is done through privately con-trolled networks, and those telephone carriers go to great lengths to block any unsolicited texting. the last thing these companies want to do is create disgruntled customers who flee to other carriers. second, it does not carry the high costs of a direct mail campaign, which includes high production, print-ing and postage charges. ez texting texting tcharges five cents per message. third, it is a medium with a very successful response rate and positve reaction from customers.

regardless of the quantitative mea-surements, mobile marketing has one significant advantage, “you’re getting you’re getting ypeople on their most personal device,” says neman. Whether it is a blackberry or a cell phone, when a message comes in, people usually respond and open it. the result is very high read rates for texting, says neman. in fact, since the cell numbers are collected on an opt-in basis, the response rates are substantial, ranging from 20% to 50%, according

to neman’s figures. although text messaging is currently

at the forefront of mobile marketing for the hospitality industry, it repre-sents only a rudimentary facet of what will likely be developed and deployed. Mobile marketing will quickly move to incorporate Web-based communica-

tion. that shift is based on new technology coming to market at a price that is affordable to the gen-eral consumer. Prior to the recent launch of apple’s iPhone, high-end phones were primarily in the

hands of business users. “the iPhone is a game changer for mobile Web adop-tion,” concludes tom tom t dibble, Ceo of screen Pilot, a digital media and mar-keting consultancy based in Charlotte, n.C. as other suppliers begin to mimic the iPhone, both in price and function-ality, the general consumer is gaining much greater access. the adoption rate in the business-to-consumer market is making internet-based mobile market-ing feasible.

not only is there is more to come—beyond simple texting—there is also more to mobile marketing than “acqui-sition” or direct sales. for the hospital-ity industry, it can offer a new form of guest service or CrM, and that touch point with the guest can provide more marketing opportunities. “it can be an extension of a hotel’s brand while peo-ple are in transit,” says dibble. screen Pilot has a product under development, called go trip, which illustrates the service and marketing potential of this emerging technology. it will have the ability to provide such features as flight information and alerts to individuals in case of delays. once on the ground, the guest can be contacted regarding travel arrangements to the property. this would all be dependent on the level of service the hotel was seeking to pro-vide. an additional Web site specifically designed for mobile devices could also be available for travel assistance. in fact, mobile marketing will begin to influence Web searching. internet searching on a

You’re getting people on their most personal device.

Shane neman, President, ez textingtextingt

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tive electrical charge and electrochemically converted from chloride to hoCl or hypochlorous. the positively charged sodium ions are attracted to the negative charge and electro-chemically converted to naoh or a sodium hydroxide. the solutions exit the respective chambers in separate streams.

the hypochlorous acid is a powerful sanitizer that dries 100% residue free. the sodium hydroxide is an effective cleanser that can be used to remove dirt and grease from any device or surface including food service operations. a number of installations have documented significant savings in chemi-cal costs, and even greater savings on the cost of soaps and detergents.

this approach, based on advanced electrochemical tech-nology is catching on in food service and housekeeping operations throughout the world. electrolyzed water is safe for people and the environment. it is as effective as many chemicals and more effective than most. both streams of electrolyzed water are non-toxic, multi-use and can save an operation thousands of dollars per year. one chain of restau-rants has documented savings of close to $5,000-per-year per operation on the alkaline stream alone because they reduced their chemical detergents for washing floors, food preparation surfaces and even dishes.

the royal sonesta boston hotel in Cambridge, Mass., has all but eliminated toxic chemicals in food service and house-keeping. the hotel has embarked on an aggressive program to significantly reduce the amount and number of chemi-cal cleaners and sanitizers that both guests and employees are exposed to. to accomplish this, director of engineering Joseph o’toole and rooms division director george lanzillo recently installed electroCide systems in both the food service and housekeeping operations.

the acidic electrolyzed water (hypochlorous acid) is used as a sanitizer. the hotel’s housekeepers use the sanitizer to clean mirrors and other glass surfaces, sanitize toilets, sinks and faucets, and eliminate odors in urinals. it is also used in place of bleach to eliminate soap scum in showers and tubs. When used in a fogger, it eliminates odors caused by smokers. Clearly, eliminating exposure to toxic chemi-cals is a benefit not only to guests, but employees as well. the housekeepers use the alkaline electrolyzed water (a solution of sodium hydroxide) as a replacement for a variety of soaps and detergents. Currently the hotel is using it to clean floors and other surfaces, such as counters and tables without mixing chemicals or needing to dipose of anything except the dirty water.the hotel’s food service team uses the alkaline elec-

trolyzed water to clean and degrease utensils, kitchen tools and surfaces. shortly, they will use it in the dish washing equipment to replace detergent and sheeting chemicals. as a result of this wide range of applications, the hotel has and will continue to eliminate toxic chemical sanitizers and deter-gents from their entire operation and from the waste stream.

using the electroCide system supports the royal sonesta’s green initiative in many other ways. by making sanitizer and sodium hydroxide on site from simple water and salt, the need for delivery trucks to deliver chemicals is significantly reduced. in the u.s. alone, two million gallons of oil per day is used to make the plastic bottles to store and transport chemicals, and the palates to transport these chemicals need never be built. the domino effect is impressive. the machine is capable of producing 15 gallons of each solution per hour, which means that in a 24-hour period, this little technological marvel can create some 360 gallons of solution.

there has not been a paradigm shift in sanitation since 1847. it was a long time coming, but that day has arrived. n

Patrick Lucci is vice president of marketing at Electrolyzer Corporation, based in Woburn, Mass. The firm can be reached at www.electrolyzercorp.com or 781-933-8801.

By Patrick Lucci

Water + Salt + Electricity Electrolyzed water revolutionizes housekeeping and food service.

Since 1847, when chlorine was

first used as a sanitizer, there

have been few if any alterna-

tives to the useful, effective—but

often dangerous—substances known

as chemical sanitizers. Today there is

a device that combines three simple

elements: water, salt and electricity—

to create a sanitizer that has proven

in independent laboratory tests to be

more effective at 50 parts-per-million

than chlorine bleach is at 200 parts-

per-million, and a sodium hydroxide

compound that can reduce or, in some

cases, eliminate the need for soaps

and detergents in a variety of house-

keeping applications. It is acidic and

alkaline electrolyzed water. It is effec-

tive, safe, easy to generate and costs a

half cent per gallon on site.

the process is elegant in its simplicity. tap water is passed into two chambers, one with a positive electrode, and the other with a nega-tive electrode. between the two chambers is a set of specially designed ion transfer mem-branes. a saline solution is passed between the membranes allowing the transport of saline ions into the two chambers. negatively charged chloride ions are attracted to the posi-

ElectroCide Systems have been installed in both the food service and housekeeping operations at the Royal Sonesta Boston Hotel in Cambridge, Mass.

The Royal Sonesta Boston Hotel in

Cambridge, Mass., has all but eliminated toxic

chemicals in food service and housekeeping.

New England Hotel Magazine | January/February 2009 | 19

By Michael Oshins

Revenue Management

there are many tools available to assist a hotel’s revenue manager, the person primarily responsible

for coordinating the maximization of a hotel’s revenue per available room. technology can be used to col-technology can be used to col-tlect and aggregate data from the property management system, manage rates and profitability sce-narios on distribution channels, extrapolate yield-booking curves and improve forecasting techniques.

notwithstanding these valuable resources, the most important tool for revenue management in any hotel is the revenue manager himself. technological technological taids provide crucial assistance with rev-enue management, but ultimately, the human factor plays the most significant role in ensuring the greatest success. as anderson it Consulting elegantly stat-ed, one goal of information technology is to “free personnel to tasks requiring the human element.” Certainly, tech-nological tools are required by a hotel to set and change rates based on con-sumer, competition and environmen-tal demands. the revenue manager’s own competencies, however, are most important for a property to maximize its revenue potential. this article out-lines several of the key competencies necessary for a revenue manager to be successful.

a competency can be defined as a a competency can be defined as a acluster of related knowledge, skills and characteristics that are needed to per-form a role in an organization effective-ly (lepsinger). organizations have been using competency models and behavior event interviews for a variety of human resource functions, including hiring and

selection, training and development, performance appraisal, pay and suc-cession (spencer & spencer). some key competencies of a successful revenue manager include:

Knowledge & Skills. different types of competencies have different characteristics and different practical implications (boyatzis). knowledge and skill competencies are the easiest for a supervisor to assess in a revenue manager. knowledge represents a per-son’s understanding and mastery in specific content areas. for a revenue manager, this knowledge includes both the theory of revenue management and its application for their specific hotel. there are many resources avail-able for rMs to gain general knowl-edge of the revenue management field, including robert Cross’ seminal text, Revenue Management: Hardcore Tactics for Market Domination. one text we use to help teach revenue management theory at boston university’s school of hospitality administration is Revenue Management for the Hospitality Industry (Pearson, 2009).

although understanding the theory of revenue management is important, the true value of a rM is the abil-ity to apply the theory in practice. arevenue manager with a solid ability to move from theory to action must have in-depth market knowledge about their own hotel, including the hotel’s

strengths and weaknesses, the compe-tition’s proclivities, consumer demand and ever-fluctuating market conditions, and an awareness of the impact of city-wide events. as boston’s four seasons

director of revenue katie buhler, stated in last month’s nehM issue, for a rM to excel to even a higher degree, she must know not only the idio-syncrasies of one’s own local

market, but also the competition in other cities where one’s hotel may com-pete for group business.

there are several skills that a revenue manager also needs to perform well in order to achieve the desired results. Chris Coffin, general manager of the boston doubletoubletouble ree guest suites hotel, emphasizes the importance of using technology deftly, starting with excel. a rM should also be able to use: the revenue function/module of a prop-erty management system, software to help manage distribution channel rates, and software to evaluate group sales, such as newmarket’s delphi software. another critical skill required by a rM is the ability to analyze and interpret hotel data—from a variety of sources, includ-ing the PMs, the star report, transient and group booking pace reports, infor-mation supplied from companies such as travelCliCk and data aggregated in excel.

While these sources are important, the analytic skill of the revenue manager is key. as industry technology consultant Jon inge aptly points out, computers don’t make the marketing decisions or expert evaluations on environmental changes. technology can help collect technology can help collect t

The analytic skill of the revenue manager is key.

What Is the Revenue Manager’s Core Skill Set?

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and aggregate the data, but the analy-sis and decision making are skills that require the human element—a rM with a keen and sophisticated understanding of the data.

a third critical ability is good commu-a third critical ability is good commu-anication skills. the three boston kimpton hotels have three different owners. nadine Massarweh, northeast area director of distribution for kimpton hotels, indicates that the owners all look for something slightly different when reviewing monthly and quarterly reports. it is the role of the revenue manager to adeptly interpret and then communicate the data with an under-standing of how the owner wants to use the information. skills and knowl-edge are the easiest competencies to develop; to develop and traditional training can most readily be used to increase these competencies (spencer and spencer). Personal characteristics, the competencies discussed below, are harder to develop; hence the adage, “you can teach a cat to swim, but it is you can teach a cat to swim, but it is yeasier hiring a fish.”

Personal Characteristics. Motives, traits and self-concept (a person’s atti-tudes, values or self-image) are also key competencies that influence the effec-tiveness of a manager in his position. these competencies are closer to the core of one’s personality and although they can be developed, they are hard-er to assess and improve (spencer & spencer). Coffin states that one trait necessary for success as a rM is “strate-gic influence” or the ability to persuade or impress others in order to get them to support one’s views (McClelland). since the rM must work closely with the general manager, sales manage-ment team and possibly a regional/cor-porate office—all of whom may have different goals—this is not always an easy task. for example, a sales man-ager may want a lower rate to book a group and earn a commission; the gM wants a higher revParevParevP for an upcoming owner’s meeting; and the corporate office wants a higher adrto demonstrate brand power. an effec-tive revenue manager needs to walk a

fine line in taking a stand up against his boss, supporting the sales manager and ultimately convincing all parties about the best long-term strategy for the property. two additional traits that two additional traits that tCoffin & Massarweh both agree are needed for a revenue manager to be successful are self-confidence and risk taking. not everyone is comfortable with or willing to take responsibility for actions that impact a hotel’s profit-ability. Massarweh warns of a rM who lacks confidence and consequently sets rates too high, resulting in lost business, or sets rates too low and leaves money on the table. Coffin explains that an effective rM must be able to balance risk taking with not missing an opportu-nity, and matching theory and reality in maximizing the hotel’s performance.

a final concern for a successful a final concern for a successful a rM, as for any employee, is ensuring a good fit between the individual and

the company. for a rM to be effective, the individual’s competencies, the job’s demands and the organizational envi-ronment need to be in alignment. for example, if the rM is a big risk-taker but the hotel owner is very conserva-tive, or the rM was expecting to have access to several technological tools that the hotel has not invested in, the result could be failure for all involved, particularly the rM. With some fore-sight and planning, a hotel can achieve high success in revenue management, relying on technology, valuable market and property information, and the most important tool—the human element, the skilled revenue manager. n

Michael Oshins is an assistant professor Boston University’s School of Hospitality Administration. He can be reached at (617) 353-3261 or [email protected].


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