Recession realities

Las Vegas—The recessionary complaining and denial stages are over, acceptance has set in, and hoteliers now are firmly rooted in finding opportunities wherever they can.

That was the mood among panelists on the HotelWorld Expo & Conference executive summit panel here on March 3.  
 

Panelists Roger Bloss, John Shigley and John Unwin with moderator Paul Heney.

Panelist John Unwin, GM of Caesars Palace, summed it up concisely: “It’s shitty now,” he said, “Ten percent down is the new up. We don’t have a lot of clarity on the future, so we’ve got to get some of the great ideas from our staff, down to the line level. You’ve got to focus on the positive and get your people excited about it.”

The employee angle
While the panelists and audience embraced the “s-word” as an indicator of the current economic climes, Unwin and panelists John Shigley, executive VP-operations at MGM Grand Hotel & Casino; and Roger Bloss, founder and CEO of Vantage Hospitality Group, agreed that for the most part, no suggestions for maximizing revenue are off the table.

“I’ve never had so many employees suggesting ideas; everybody is getting creative,” Shigley said.

And managers are listening. Shigley said he turns to his line staff for a true take on the pulse of business. “If you want to know how you are doing, go talk to your doorman, your valet parker. They are tip-driven, and they will tell you,” he said.

Bloss agreed that two-way communication with all staff could lead to cost-cutting efficiencies and increased sales. “We’ve put together corporate SWAT teams to go out [to the properties] and look under this rock, around that corner and behind that door,” he said.

At the same time, instilling confidence in employees can lead to payback in sales, he said, since happy employees promote your brand everywhere. “There’s no reason why your head desk clerk or housekeeper can’t be out making sales when they visit their Kiwanis club, soccer league or whatever the case may be,” he said.

The customer angle
The argument against cutting rates may not hold as much water, Shigley and Unwin said, because customers are value-oriented these days and smart about rates.

“You can offer a customer a higher rate but with better add-ons, but they’ll always go for the lower rate,” Shigley said. All three panelists agreed that Las Vegas is not a normal indicator market, since overall cost is a combination of rates and ancillary products mixed in.

One aspect of Las Vegas that hasn’t changed despite the recession is that customers still expect an escape.

“We have an opportunity now to provide great value while still providing an escape,” Unwin said. “There’s opportunity for us to continue to steal share from other segments.”