Cornell Runs Hotel Study To Identify Best Practices

<B> Cornell Runs Hotel Study To Identify Best Practices</B>

By Maria P. Vallejo

<I>Washington, D.C.</I> - Hoteliers will survey about 1,300 corporate travel and meeting buyers, frequent travelers and travel agents this summer to complete a study of best practices in the hospitality industry that will create a how-to guide to success.

The project will identify about 200 of the industry's best practices, ranging from frequent guest programs to guest services, while delivering a comprehensive instructional report that will help other hotel companies achieve product and financial success. "We're not just looking to identify champions, but also see what those champions are doing," said Leo Renaghan, director of the Center of Hospitality Research at Cornell University's School of Hotel Administration. "We want to learn about those innovations and ideas with as much depth as possible so we can share them with the people in the industry."

Commissioned by the American Hotel Foundation, the study is the Foundation's largest industry research project, costing $250,000 and including responses from 14,700 insiders. The Center of Hospitality Research will complete the study by first quarter of 1999.

Best practices catagories are based on price segment, quality levels, property size and company involvement in the industry. Upscale, midpriced, economy, extended stay and casino hotels will be ranked in separate categories, while chains, franchise, management and independent hotel companies will compete against one another.

<B>Hoteliers Seek Improvements</B>

"All of us in our daily lives see someone else that is in some way, shape or form doing something exceptionally well," said Douglas Viehland, the Foundation's president. "We are willing to point them out."

Officials involved in the study expect the project results will not only improve programs and services at the property level, but also increase companywide profit. Many hoteliers are concerned about profitability because of the increasing number of mergers in the industry.

"The major issue that's driving this study is that the industry has become very competitive," Renaghan said. "For firms to succeed in the industry, they need to increase revenue and cut operational cost. This study can show them how some firms are leading the way to do great business."

Although the final product is expected to improve profitability and competition between the hotel companies, travelers will benefit from the improved service and programs if companies follow the survey's guide format. "Companies are looking to change their business practices, so the whole industry can benefit from this," Viehland said. "It benefits the travel buyers because they will receive a better product as hotels operators benefit from the practices."

The three-phase study is surveying 13,400 U.S. hotel senior executives and management employees at the property level, along with the 1,300 corporate travel buyers. Officials are surveying senior executives of 200 major U.S. hotel brands for recommendations of best practices. While there may be doubt that hoteliers will share recommendations withcompetitors outside their companies, project officials believe they willingly will participate, in the best interest of everyone.

The second phase of the project, beginning in August, will involve recommendations by property-level employees and initial interviews with the previously recommended best practice candidates. Throughout the process, those surveyed are not bound to critique the previously revised list of candidates. Rather, they can offer their own recommendations for best practices in their areas of expertise.

The third phase, involving travel buyers, will serve as a checkpoint for the previous recommendations. These interviews will be conducted simultaneously with phase two, beginning in July or August.

A Cornell team and an eight-person advisory group then will weed through the list of best practices recommendations to create a final list. The group will include the American Hotel Foundation, American Express and other industry experts.