Someone Has To Tell Them

Kudos to the Santa Monica Planning Commission for doing the right thing and recommending to City Council that hotel developers must pay employees a real living wage.

Because it seems someone has to tell people that keeping room rates low is not a good excuse. Nor is the fact that employees elsewhere get less. What are you going to do, outsource your housekeeping jobs to China?

Paying people a wage that ensures they can keep a roof over their own heads and buy some groceries at the end of the week is not just good business, it's a very basic starting point for how the entire community will support you. Or not.

What do I think of the local union's demands that a living wage in Santa Monica should start at $15 an hour?

I think any lodging business anywhere in California who pays any of its employees less than $15 an hour should really be ashamed of themselves.

Anyone who thinks that's too high should try living in Santa Monica on less than that themselves for a while.

Of course, I won't hold my breath waiting for that social experiment to start. Low wages are so for the little people. You know, the folks who keep the engine of the whole machine humming. Those little people. The folks who interact each and every day with the guests. Those little people. The face of the inn.

Pay your employees a decent wage, folks. That's just a very basic starting point. The success of your entire operation depends on them. Treat them with dignity and respect and stop fighting for the right to exploit them instead.

Yes, someone has to tell them.

Because it just seems that not everyone is going to figure out that whole human decency thing on their own.

Forward Movement

When I work with organizations seeking to make fundamental and significant change, one of the first things their senior and frontline managers learn is the importance of each small change. And, specifically, they learn how to identify which small changes will have the biggest impact in changing culture, in changing attitudes, and in changing performance and results.

One improvement at a time.

It's the way real change is accomplished and, if the organization is persistent in its efforts, the way those improvements become incorporated into the big picture.

So when TripAdvisor completely changes the way it's going to incorporate the third-party reviews from one source by overseeing the program themselves and including a verified tag, well, it's not difficult to see where this is headed.

One improvement at a time.

If they're smart - or being guided by a skilled change management consultant through the process - they'll review results of this change in process and make further improvements before moving forward with the next. And the next. And the next. Until slowly but surely this is just the way it's done. Almost like magic.

How does this impact the vast body of TA reviews that are currently unverified? That impact will be seen over time.

But one thing we can be sure of. They are moving forward with a a major change.

One improvement at a time.

Tough Talk Aside

I think the last minute legal and financial wrangling between the America's Cup Committee, the City of San Francisco, and the various environmental and community groups will be settled.

I think they'll work it out.

Why? Because it's simply in everyone's best interests to seal the deal and make it final.

Of course, the suspense won't last long at this point. The full Board of Supervisors will vote on it tomorrow. It will be noisy, there will be much hand-wringing and criticism from every angle, it will not be pretty. But I think, in the end, they'll approve the modified deal.

What about the litigation? I have a feeling it will go away just as soon as some compromises are made.

And yes, tough talk aside, I think some further compromises will be made.

What's the point, then, of all that tough talk? Posturing for a stronger negotiating position, of course.

Are there real issues still to be worked out? Sure. But personally, I think it will all get done.

Will everyone be happy? No.

But I still think it will all get done.

All Over The Alps

Innkeepers are toasting to the Les Menuires 7.

If you've been following the cause of the group of stranded chalet hosts, you'll be happy to know that they are declaring victory.

How did they do it? By putting their story out there to the world. Very smart. And effective.

How supportive are workers in the Alps to the cause of these young people? Extremely.

The best part? The deal worked out means

"the company have had to register in France for tax purposes and will have to formally employ all future staff, declare them, pay taxes and social security on their wages and keep proper records of hours worked"

Which, of course, is always good.

For innkeepers who don't know what chalet hosts are, they're basically underpaid temporary innkeepers. Usually kids, they're brought in for a few weeks to a few months to do everything innkeepers do.

Long hours, lots and lots of work. And, in some cases, the pay they're getting for this is quite shockingly low. Would you work 12 hours each day, six days a week, for around $20 a day and a free lift ticket? I thought not.

Chalet hosting is quite common in the Alps. Some groups pay the kids decent wages, some don't. By bringing in young people for a few weeks at a time, folks who may be inclined to exploit their employees often fly under the radar of the French authorities.

Why do the French stand in solidarity with a group of kids, most of them British?

Liberté, égalité, fraternité. For the French, their slogan is not just for holidays. It's who they are.

Something any foreign investor should always consider. And respect.

Oh La La La La La La

Being married to a Frenchman, I'm never surprised by a French protest. It's just a big part of French culture, the right to air grievances in a public protest. It's such a big part of who they are, it rarely even gets much press. Because, you know, it just happens all the time.

And protests are not limited to cities or transportation systems. They're everywhere.

But when a group of disgruntled employees barricade themselves into a ski chalet (yes, a chalet not all that far away from our home in France) and start using the wifi to blast their message out to the world, well, folks start to pay attention.

Especially when paying guests are supposed to be checking into that chalet on this very day.

Do I think the kids will give up and go home? It appears that they can't, actually.

The dispute is over unpaid wages and the protesters say they're stranded.

Of course, there are worse places to be stranded.

What's so unusual about this particular protest, besides the fact that they've barricaded themselves into a chalet?

The kids are not French.

But it seems it didn't take them long to learn all they needed to know about French culture. Let's just hope they don't adopt the whole head-rolling routine before this is all settled.

Word to the wise. When you hire folks to work for you, it's a really good idea to pay them. In full, on time. Whatever wages these 7 kids are due, it's got to be a whole lot less than the bad PR this is causing.

Entirely Too Lovely

To stay indoors.

Hope all is sunshine and light in your world, too.

One Big Mess All Around

I've said it before and I'm sure I'll say it again before it's all over.

Anyone who believed that the same folks who did such shoddy work bundling residential mortgages into toxic securities did any better with commercial paper is a fool or, well, I can't really think of any other option than fool.

And looks like this year, the year that so much commercial debt is coming due, is going to be the year it all gets exposed to the light of day.

Because, in the end, folks losing their homes are often too embarrassed or too lacking in assets to sue their lenders for foreclosure fraud. They just fold. And, of course, that's exactly what the lenders have been banking on.

But here's the thing. That commercial paper that's so shoddy that all legal recourse is questionable at best? It's going to get litigated.

You can take that to the bank.

Fasten your seat belts folks. We're in for one hell of a ride in 2012.

Think the much touted foreclosure fraud settlement will make this whole problem go away?

Think again.

So you're thinking of buying a property and you really want to make sure the title is truthfully and accurately recorded and that there's no confusion about ownership further down the road?

Good luck with that.

A Sustainable America's Cup

With the 34th America's Cup being held in San Francisco, America's greenest city, it's not surprising that sustainability is a key goal.

So many folks have been eager to take a look at just how sustainable the whole event really is going to be and now they can. The Sustainability Plan for the America's Cup has been released. Check it out.

And for innkeepers in the SF Bay Area, how are your plans coming along for making sure your guests get the most out of this phenomenal event?

One good place to start is listing your business on the America's Cup site. You can apply to do just that here.

The San Francisco Bay will provide a unique natural ampitheatre for viewing the Cup, promising exposure across an especially wide range of demographics.

Smart innkeepers will make sure their inn is part of the action from beginning to end.

Things Are Good On The Coast

At least that's what we're hearing as folks laud occupancy and RevPAR that's finally back up to pre-recession levels in Southern California and all along the California coast.

And don't get me wrong, all that's good. Sustainable revenue levels are always a good thing, in my humble opinion.

A closer look, however, tells the real story.

Why are the survivors doing so well? Because competition is down 20-30%. I suppose some folks find that to be reason to celebrate. I am not one of them. Personally I've always believed cemeteries to be all about paying respect, not dancing on graves. But maybe that's just me.

Foreclosures are down. But we know the reason for that, don't we, regular readers? The lenders don't really want to reduce the value of their already strained assets and foreclosure will do just that.

Hotel transactions in California, were up last year. Especially on the coast. Back up to 300, up from only 80 in 2009, the year reality hit the fan.

How about this year? For folks with cash, it's a golden year in the golden state. Bargains are out there for the grabbing and there's every reason to think those bargain properties will perform well with good management.

But for buyers without cash? Good luck with that.

With a wave of 2006 and 2007 ARM notes coming due, financing is not going to be easy.

So there's good and there's bad in this year's improving numbers. Savvy investors and buyers will, hopefully, consider the whole picture.

The days of reckless abandon are gone. I don't know about your lifespan but I can pretty much promise you that those days will not be coming back in mine.

Independent Assessment

Okay, so your pool and hot tubs are all set up with permanent and separate lifts so that you'll be in compliance of the new ADA regulations coming into effect in just a few weeks. You are ready, aren't you?

Now, how about those online reservations?

Sure, you already identify which of your rooms are barrier-free. But do you include enough details?

Because the new regulations require more than simply stating that the room or suite is compliant. You must also explain just what features make it compliant.

Guests who require barrier-free rooms, just like other guests, do not all fit the same mold. So one guest may be fine with a tub with bars and an accessible seat while another guest may need a barrier-free shower they can roll into. Is there a kitchen in the suite? Are its counters and all others of suitable height? And just how wide are the doorways?

Yes, you'll need to be just that specific so that guests can make their own decisions about whether your barrier-free room is the right one for them. Or as the new regs put it, you must:

(ii) Identify and describe accessible features in the hotels and guest rooms offered through its reservations service in enough detail to reasonably permit individuals with disabilities to assess independently whether a given hotel or guest room meets his or her accessibility needs;

Why do I harp so much on making sure innkeepers really understand the new requirements and take seriously their responsibilities to implement whatever changes required to comply?

Personal experience.

No, I don't require a barrier-free room myself.

And, no, I haven't been sued myself for that or any other reason.

I, as regular readers know, make sure I stay abreast of requirements and that my ducks are in a row.

Alas, not all innkeepers do the same.

Case in point. I once worked in an area of tiny villages where, in one weekend, four - count them 4 - different small inns were approached by a potential guest who found that none of the inns complied with ADA requirements.

What did she do? On Monday, she called an attorney who immediately filed suit.

All 4 inns settled and immediately, in addition to outlays of tens of thousands of dollars each in the settlement, began work to upgrade their facilities and, thus, comply.

What do all 4 of those inns have in common?

They should have known better. The regulations, after all, were not a surprise. The potential guest knew them. We all knew them.

All of us who were paying attention, that is. If the owners of those small inns didn't know, the management surely should have and should have informed the owners of the deficiency.

Be forewarned. Small inns are frequently targeted in attempts to reach settlements just like the 4 inns in that rural area.

Why? Because of the perception, real or otherwise, that they're not really paying attention.

Don't be an easy target. Change is coming. It's up to you to be ready.

A Wake Up Call For The Entire Industry

GBTA just released a report on its research into the potential effects on tourism here in the states of a worsening crisis in the Eurozone.

It's not pretty.

What do I think?

I think we can just run past that whole current/baseline scenario and start looking at what they call moderate (minus $40 billion) or severe/extreme (minus $88 billion). Because just in case you haven't been paying attention, things are not getting better in the Eurozone.

And as much as it saddens me to say so, I don't see much likelihood that the currently terrible situation is going to continue at its current terrible pace. It's going to get much worse before long before it starts to get better.

But you, regular readers, already know that, don't you?

It's my great hope that readers of this humble blog have already begun taking steps to deal with that reality. Because the time to wake up was really last year, when you were working on your forecast for this year.

Still don't think Europe's gigantic mess is going to have an impact in your area?

Oy vey. I do so remember folks telling me that exact same thing back in 2006 and 2007.

The exact same thing.

Love Is In The Air

Hope you're having a wonderful Valentine's Day.

I know I am.

Still Waters, Not So Deep Just Yet

Lots of folks have started asking if we've been shaking here and, so far, no.

It's pretty quiet, in fact.

Of course, we know that can change on a moment's notice. For now, paradise is quiet and rather still.

You'd never know by looking at this image that the San Andreas Fault runs right through the middle of that body of water. In fact, it's what formed that body of water.

One of these days, it will shake again right near the spot seen above. When it does, both Tomales Bay and Bolinas Lagoon will suddenly be deeper and in no need of any dredging.

So if you were to ask the fishermen around here, they'd mostly tell you to bring it on.

As for me, I'm enjoying the peace and quiet, thank you very much.

Most Welcoming

After seeing a 25% increase in visitors from China last year, it's no surprise that the Hotel Association of Canada is pleased to see their government working to ease travel restrictions and otherwise promote tourism from China.

Given my own background in cross-cultural communication, it's also no surprise to regular readers that I especially like their early emphasis on cultural sensitivity. To make the increase sustainable, that sensitivity will be key.

How big a jump in Chinese visitors do the Canadians hope to see over the next few years?

A big one. According to the Conference Board of Canada, a 50% increase in visitors from China is projected by 2015.

The Dragon Has Arrived

If you're in the San Francisco Bay Area and missed the Chinese New Year Parade last night, don't worry.

The street fair continues all day today.

As always, it promises much local color and many opportunities to guarantee your luck and fortune in the year ahead.

Who doesn't want that?

Stop to Smell the Flowers

And if you're in Huntington Botanical Gardens and think you feel a tug at your shoulder, something in the universe pulling you in the direction of the Children's Garden or the Teaching Greenhouses, well, that will probably be Jeff.

Short Window

When Tom Stienstra speaks, hikers in California listen. He is, after all, the undisputed expert extraordinaire on the trails and landscapes that make this state so very grand.

So when Tom says we may have a short window on waterfall viewing this year, chances are very good that he's right.

Today?

Sun is shining and the water is flowing, cascading, and spilling over rocks and bluffs.

Sure, we might get some rain late in the season and, who knows, make up for the light rain we've seen so far.

But then again, we might not. If you want to see those waterfalls making their magic, get on out there.

Today is a perfect day that will never come back this way again. Don't miss it.

Oh yes, tomorrow promises more of the same.

But there's no reason you can't enjoy two perfect days in a row now, is there?

Means of Entry

One issue that has been especially frightening to innkeepers about the upcoming changes to ADA requirements is the whole issue of pool access or, specifically, the means of access to the pool itself.

Yes, private pools (that means your inn, dear readers) are included.

And after much prodding from the hotel industry, the Department of Justice has clarified the new rules.

Yes, you're going to need to make those pool lifts permanent lifts unless you can make a good case that doing so would not be readily achievable, in which case you may be okay with a portable lift temporarily.

What if you have both a spa and a pool? You need pool lifts for both. Multiple spas in clusters are an exception as long as one of the clustered spas is in compliance.

What happens if you don't comply? Hello lawsuits. You can bet there will be folks out there ready to test that whole readily achievable standard right away.

How to best make sure your inn's pool is in compliance? As always, the DOJ's own site is the best for detailed information. And when in doubt, consult an ADA attorney.

Time is of the essence, though. The new regs take effect March 15th.

Someone Should Probably Tell Them

Guests quite frequently request specific room assignments and locations.

In fact, it's become something of a trend in travel with sites like TA now including room tips in online reviews.

I'd really hate to see innkeepers thinking that alone might make the guest, well, someone to keep an eye on.

Have you seen the flyers being distributed by the FBI and the list of behaviors that they think might raise suspicion?

Top of the list: Request specific room assignments or locations. That doesn't lend a whole lot of credibility to the list, right from the get go.

Yes, I'm afraid that even more items on the list are much more normal guest behavior than they might think.

Guests arriving with unusual amounts of luggage? Yes, that can be suspicious if one has a suspicious mind.

But it could also mean the guest's luggage was lost by an airline. A lot of luggage can just mean someone is either on an extended trip or in the process of moving.

Use entrances that avoid the lobby? Isn't that the point of cottages, the privacy? Or motels, for that matter.

Never leaving their room? If they're there for the view and find they have everything they need right there, that might be quite normal behavior. It might, in fact, be the whole purpose of the stay.

All that said, innkeepers have an inherent responsibility to ensure the safety and security of each of their guests. If your gut tells you something is wrong, really wrong, don't put yourself and other guests at risk.

There's always a fine line to be drawn between protecting guest privacy and respecting the rights of other guests to be safe and secure.

But personally, I'd be cautious about jumping to conclusions for all the wrong reasons. Paranoid innkeepers are not gracious innkeepers.

Innkeepers can play an important role in keeping communities safe. Maybe next time the FBI puts a list of suspicious behaviors together, they might, just might, want to include innkeepers in the creation of the list itself.

Because, in the end, no one knows creepy suspicious guest behavior better than us. No one.

That's why we usually have the number for our local authorities on speed dial.

Just in case.

Pop the Bubbly

Celebrations are being held all over California with the news that Proposition 8, the controversial California law that has prevented gays from sharing in the equal protection that comes along with state-sanctioned marriage, is indeed unconstitutional.

Sadly, even with the great news that this is, it's not yet time to start planning those weddings.

No word yet that the stay on gay marriages has been or will be lifted until all appeals have been exhausted.

As it's expected that the big pocketed folks behind the hateful proposition will appeal this ruling all the way to the US Supreme Court, that could take a while.

Still, on this day, it's time for a little celebration.

And more than a little bubbly.

But We Just Liked Him Better

Oh, if I had a dime for every bad hiring decision I've seen out there. And the disastrous results of, how shall we say, less than scientific methods for pruning through the stack of applicants for every open position.

Longtime readers and associates know that I tend to go on the scientific side in all such matters. Past behavior is a much better indicator of future success than a winning smile.

Yet, time and again, I hear of owners going for the personality over substance. Why? They can never really say. Just liked that guy.

And, of course, time and again I see those same folks lining up candidates once again just a few months later when that winning smile wasn't really quite all that it seemed.

Do they get it right the second time around? Only if they recognize that what needs to change is their own approach, not simply a new candidate with yet another winning smile.

The age old conflict in the hospitality industry - whether to hire based on personality or ability - is alive and well. The implications of getting it right put hiring among the most important decisions any owner or manager will make.

So call me unsurprised that the Cornell Hospitality Quarterly's article of the year for 2011 was one that looked at just that.

Successful employee hiring - and effective employee training - are the hallmarks of a savvy business owner and a good manager.

So why oh why do folks continue to go in the exact opposite direction when faced with the most obvious of choices?

Ignorance is bliss, as they say.

That said, it seems an awful lot of folks realize they could do much better in that category. Or at least an awful lot of folks want to know more.

By the way, if you'd like to get it right next time your inn is ready to make a change or bring in some new talent, just drop me an email.

Successful hiring, training for results, and establishing sustainable reward systems are just a few key areas of expertise of yours truly. Only too happy to share with you my secrets for success and, better still, make those secrets your own to carry with you throughout your career.

And I'll even do it with a smile. Ability and all.

On the Horizon

More of the same for the next week or so, just splendidly mild days, peaceful sunsets, perfect weather.

No rain in sight.

Which, of course, begs the question.

Why are you not here?

Emerging Questions

Some very concerned innkeepers have asked just how important it really is to take steps to promote small inns in some of the areas expected to be impacted by an ease in tourist visa requirements.

My answer?

Well, that depends.

Because it really does. Depend on where your guests are coming from today and how losing some guests from your traditional demographics will impact your bottom line.

If your inn has been seeing a lot of European visitors over the last few years, it is my opinion that you need to start today to think about how you're going to replace those visitors. Because you will, in all likelihood, see fewer of them over the next few years. Because if you haven't already noticed, austerity is killing Europe.

But that doesn't mean your inn has to see a decrease overall. It just means you need to plan ahead for the coming change.

Consider Greece.

Who is going to Greece these days? Well, unsurprisingly, a lot less Europeans than usually would.

But what has Greece done to replace those lost European visitors?

Relaxed visa requirements. Very smart.

Who is coming instead?

The Russians are coming to Greece. In droves.

As in an 88% increase in Russian visitors, enough to drive their overall tourism dollars up. Yes, overall tourism is up, despite all the woes Greece is facing.

Here in the states, we'll see our own version of a shift in tourists. That is, if and when President Obama's executive order results in actual change in visa requirements.

And here's the thing. You can't expect that tourists from Brazil and China will naturally gravitate to the same areas that tourists from Europe have been gravitating. For a variety of reasons including the very basic difference in where they'll land when the get here.

But you can begin to look into where those flights may come in close to you. You can begin to look at press releases targeted at in-flight magazines. You can target those areas in your online marketing campaigns. Your association can work on creating a marketing plan that assists all of the members of your area to make sure your area remains busy, even when the demographics of your visitors changes.

What if your guest base now is almost all domestic, almost all from your state? Well, you'll see less of a loss of European travel than others whose inns depend on it. But don't discount the impact your overall community may feel from that loss if steps aren't taken now to make sure your area remains in the hearts, minds, and travel plans of a whole new demographic base.

But if you want to increase your base, expand your target area of international visitors, and ensure that your inn stays viable in the days ahead?

Don't wait. Start planning now and get those guests to your inn, take good care of them while they're there so that they can spread the word for you.

See how simple that is?