PHOENIX-Harry Javer, president of the Conference Bureau, probably put it best when he kicked off day two of the Lodging Conference here: “We're not being outmoded by technology or foreign competition – the hotel industry is very strong. I’m very optimistic and I think it’s going to be a good year.” And his sentiment was echoed by the industry’s top players during the panel, aptly titled, A View From the Top, a welcome change from the “cautious optimism” bandied about for most of this year.
The panelists kicked off the discussion on a high note, focusing on their recent achievements. Highlights included news from Tom Magnusson, CEO of Magnusson Hotels, of major expansions; he discussed the company’s global expansion to Magnusson Worldwide and the company’s move to look for hotels in emerging countries “off the grid” never exposed to travel agent. Additionally, Nancy Johnson, executive vice president development with Carlson Rezidor Hotel Group, was proud to announce her company’s new female CEO.
With these and other developments in mind, the panelists spoke to probably one of the most important questions surrounding the hotel industry and no, it’s not the election. Moderator Mark Woodworth, president PKF Hospitality Research, prompted the group to speak to their perceptions of the biggest milestones on the road to recovery. And, surprisingly, panelists all agreed that it’s time to get back in the groove and be confident about business, not scared.
“A perceived volatility in the marketplace – it ruins confidence,” said Liam Brown, chief operating officer, owner & franchise services, select services and extended stay lodging, the Americas with Marriott International. “Airlines have managed to drive rates,” he observed. “I think our challenge as an industry is to be confident from a pricing perspective.”
Johnson added, “The hardest thing we have to do as leaders is to say we need to maximize our profit because our expenses are increasing.” But she agreed it’s time to step up the game: “We have to get aggressive on our rate strategy. “It's an unprecedented time in our industry and leaders have to step up and be bold and take risk and raise the rates.”
Of course, the upcoming election could not be ignored, particularly since the first debate took place Wdnesday night. However, the panel concurred that the next few weeks are not a time to sit back and wait for a result. Rodger J. Bloss, president and CEO of Vantage Hospitality Group, shot straight to the point: “We’ve been waiting on the sidelines for so long [people] are ready to get back in the game.”
Magnusson added: “We need somebody who will lead this country and who will remember that the business of America is business and that’s what we need to focus on. Capitalism has been under siege – it’s bad to be a capitalist. If we have four more years of Obama, it will be quicksand. Romney will get these engines going again.”
The panel concluded on a couple of questions focusing on the future: where is the industry going to be in the next 10 years? How are things going to change? It was unanimous that education and embracing and using new technology were ways to engage future generations and, more importantly, speak to the new crop of leaders.
“This industry is unique in that we grow people from within,” Johnson said, “you can come in as a bell boy. There is an amazing opportunity for students to identify their skill sets,” expressing the industry’s dedication to looking forward and to growing and changing – no matter what happens to the White House in a mere few weeks.
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