Stories from an Easily Distracted, Dyslexic Creative – The Rise of the Mediocre Hotel : Has your Company scaled too fast? May 23, 2016
I’m writing this after bumping into an old work colleague I hadn’t seen for 25 years.
WOW? I felt old … but only for a minute.
So, we began discussing the Hotel and the Restaurant industry … that’s how we met.
He’s helping hotel owners play nice with hotel operators in this very rapidly growing industry that seems fixated on swallowing its market share … and everyone else’s.
And this got me thinking about this feeling I have …
Has the industry caught a ‘Wall Street style’, ‘contiguous shareholder greed is good’ disease … and the only way is growth or death?
Sure – this is not new thinking.
It’s bull market kinda stuff.
Wall Street blah blah … greed is good … so what’s new?
But are we seeing the rise of mediocracy in the hospitality industry?
YES … YES … YES we are.
Here are some examples :
- Millions of dollars spent on an incubator hotel for Millennials, by people who are in there late 50s.
- Cookie cutter concepts that don’t translate in all cultures.
- Expanding into unstable, war-torn countries to be the ‘first in’ – whilst there is still bloodshed.
- Speed training. WTF is that? Yes, sadly, it exists.
- Over-promoting young team players way beyond their abilities, then firing them for failure to financially reach their targets.
- Making decisions 150,000 miles away, and never, ever seeing the property – or even meeting the team that run it.
Balance sheets are not a strategic plan … they are just a balance sheet!
I work and meet with designers, hoteliers, restaurateurs and entrepreneurs for my hustle/craft/ passion/job … whatever you want to call it.
All I hear, is massive groans of aches and pains of expansion, and the lack of talent and bandwidth leaders have left. Tired … Tired … Tired. Hence – so is their work.
I see brands struggling … yet expanding.
I see products taking a back seat to prioritizing for grow, grow, grow attitudes.
The cost is great and the quicksand is deep, but so far, so are the owners’ deep pockets.
For now anyway … until???
“Until what,” you say?
Well, the next big financial hit maybe?? But even worse than that …
Worse than that?
Scaling to a point whereby you have nothing unique, agile, flexible or even simply, a great product, to survive the times when they are tough.
But even scarier, is when there are too many of you doing the same mediocre shit and the audience has dried up – or moved onto the place next door, or down the road.
Loyalty to brands has become almost a myth in the hotel business now.
When was the last time you signed up for a hotel rewards card and really cared??
And guess what?
We did it to ourselves.
Because your hotel company is driving without looking 5 to 10 years ahead.
Your company has chosen scaling over training and quality.
Your company chose to start at a 5 Star Hotel level, then began new brands at a 2, 3 or 4 star brand level.
Do you see Ferrari getting into hatch backs or mini vans?
No … because they won’t be successful … and they know it.
They know that every few years when they release a new model, expectations are even higher than last year.
They know innovation is a mindset, and not just fancy gadgets.
They know that quality matters. But, so does product honesty.
But most importantly … Ferrari don’t take their clients for suckers – they value them.
Hence, why my company Marchettico is in demand.
We don’t work with everyone, or past our own personal bandwidth.
We are not arrogant – just humble conductors of quality and passion.
We focus on product honesty, set trends not follow them, and truly believe in our product.
See – there are few veterans left in this rapidly growing market, because training and experience comes with time … not extensive, written manuals or Facebook quotes.
There are graveyards for old airplanes to go to when they are de-commissioned.
They can be shipped, and left behind a big ass Donald trump dumb ass fantasy wall in the desert, for no one to see – ever again.
But what will we do with all the empty, run down hotels when the owners’ pockets run dry??
Rent them out by the hour is my guess.
“How do you eat an elephant???
One bite at a time.”
(I didn’t write this … but it’s my mantra.)
Robert Marchetti – Founder and CEO, Marchettico
“Someone is sitting in the shade today because someone planted a tree a long time ago.”
“You have to understand your own personal DNA. Don’t do things because I do them or Steve Jobs or Mark Cuban tried it. You need to know your personal brand and stay true to it.”
Gary Vaynerchuk – “The Serial Entrepreneur”
Robert Marchetti – Founder and CEO