Wednesday, September 16, 2009

A Miami Hotel

PROBLEM OVERVIEW

A Miami hotel was suffering from poor occupancy, high customer complaints, poor sales performance, ineffective revenue management and several other operational deficiencies making a once proud 5 star property barely a 2 star performer. The hotel operated at 38% occupancy, well below potential for nearly 2 years prior to retaining DCG. Not only that, its reputation within the community had almost nearly entirely dissipated while the management team's relationship with various industry market managers was in dire straits.

After a thorough evaluation of personnel and operations, it was discovered that the poor occupancy levels was directly correlated to bad existing sales practices, unfocused revenue management, unpleasant customer experiences with the front desk and overall lack of communication between department heads.

THE DCG DIFFERENCE

We focused our attention on the Front Office operations first. Why? The Front Office was the central hub of all information crossing between departments. Meticulous, detailed and standardized procedures were put into place that organized the information concisely. DCG worked with each department head in their information management and executive techniques and trained them on their core departmental responsibilities. We found that some department heads were simply incapable of operating in a structured and organized environment and were thus replaced with personnel who could. Some individuals were moved to other departments in which their skill sets would prove most effective, while others were promoted to positions of greater responsibility as their skill sets had been ignored or overlooked.

DCG moved through each department tackling core issues and training personnel accordingly and placing the necessary systems in place that had previously been ignored and eventually fell by the wayside. We implemented a proprietary revenue management system in which our hotel could adapt to changing market trends within 5 minutes and worked to improve our relationships with key market managers and market influencers. DCG then moved to improve the customer arrival experience through implementing proprietary porter techniques and departmental flows.

THE RESULTS

Within 8 months from the start of our engagement, revenues for this hotel had surpassed previous all time high levels by 100%. The hotel was recognized for outstanding customer experience by AAA and Expedia. ADR was improved by 116% while RevPar was improved by 76%. Occupancy was improved 118% and ran at a rate of 80% or above for the entire year. Sales performance measurements and indicators were regularly met or surpassed for 6 months straight through the end of our engagement. The hotel was approached by a competing brand for purchase.

A Latin America Corporation

PROBLEM OVERVIEW

A large Mexico based company had trouble entering the US market. Despite tremendous success in Latin America and the Caribbean, the North American market remained elusive to them. For 3 years, the company tried unsuccessfully to gain share. Various marketing efforts were introduced but were ineffective, special offers and promotions were administered though yielded no results. Thousands of dollars were spent on collateral, advertising, PR and mail, to no avail.

THE DCG DIFFERENCE

3 days after our initial consultation, we entered into our engagement for 6 months. Our objective was to evaluate everything this company was doing by way of appealing its brand to the US market and plot the best course of action henceforth. We determined that the collateral they were using, the layout on their brochures, their website, flow of text all needed to be realigned if we were going to grab the attention of the scrupulous US consumer. We recreated the entire brand image, re‐wrote their text and designed a fresh logo readily recognized by a United States customer base. Through our customer surveys we realized that if a prospective buyer was interested in the product, they were not received as expected by the company representatives when they called in or emailed for more information. As such, we recognized that the company culture was perfectly suited for a Latin American company or Caribbean company, but needed a US makeover before their product could be delivered to the market. We proceeded with training all 1,100 of the company’s employees from the executive corps to the hourly laborer in US business culture, customer service, follow up and creating effective and enduring marketing campaigns.

THE RESULTS

The company landed a multi‐million dollar contract shortly after we introduced our programs and modified their brand. DCG cultural awareness programs have been implemented to take the place of a previously homogeneous customer attraction and retention system. In fact, a department was specifically created by DCG for cultural training in order to better prepare the company for expansion efforts into previously uncharted markets. As a result, locations have been opened across the US and in countries outside of the Americas. They continue to do well in down economies as we have designed a diversified portfolio around a global market position.

A Hollywood Hotel

PROBLEM OVERVIEW

A long time and once prestigious Hollywood, Florida Hotel was slated for demolition. This hotel is the pillar of a city’s identity and served to entertain some of the most famous figures and personalities of the early 20’s through the late 40’s. The property had fallen into grave disrepair and was synonymous with roadside motels in the minds of contemporary travelers. Revenues had fallen stagnant, occupancy levels were dismal, ADR was abysmal, RevPar increases were non-existent and customer service scores were discouraging.

THE DCG DIFFERENCE

Our analysts quickly diagnosed some key problems and implemented the necessary protocols to reverse the downward trend on all of the measurement matrices identified in the overview. Through zeroing in on guest feedback and understanding why travelers no longer saw this hotel as the destination it boasted for decades we recognized core deficiencies in this hotel’s best practices. First and foremost, the hotel itself needed a cosmetic makeover, beginning with re-uniforming the entire staff. Creative ways of packaging and bundling various services were produced and implemented in less than 1 week. Some staff needed to be replaced, while others needed training. We manifested log and service management systems to capitalize off of the constant flow of information we received through our property diagnosis and customer feedback analysis. We created a revenue management department and implemented proprietary revenue management techniques then hired and trained the necessary personnel. DCG professionals repaired and streamlined the property’s CRS, PMS procedures and employee team practices.

THE RESULTS

Revenue’s surpassed past best results by over 200%, ADR was vastly improved by nearly 145%, RevPar increases became commonplace with an average quarterly improvement of 66% or better. The property received its first ever Outstanding rating in Quality Assurance, won numerous awards for customer service. Guest satisfaction at times exceeded 95% satisfaction. Occupancy levels reached 80% or better year over year. The hotel was featured in the nationwide National Treasures Publication by Christmas of the first year of our engagement and was also featured on the ‘Best of South Florida’ program airing on fox .