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The Secret to an Industry's Success

Mike M.
Posted by Mike M. on January 24, 2020

The hotel industry is incredibly cool!  As you will no doubt find out, I am unabashedly biased about this, but I firmly believe that there is no cooler industry in the world than hotels.

There is a lot to unpack about what makes my industry so great:

  • Hotels are all about travel , and we humans are wired to love travel.
  • Hotels are the ultimate immersion consumer  product because of how much time we spend in them and what we do in them.
  • Hotels are the ultimate service experience for most of us since where else in commerce do we arrive to a warm welcome and then have people wait on us and then clean up after us.
  • Hotels are challenging to run because of the how much has to go right to run  such a business that incidently has to be up and running 7x24x365.
  • Hotels are ultimately all about real estate by nature of its scarcity and leverage and real estate always has inspired some of the most fascinating stories in the world of business.
  • Finally (and maybe the biggest point of all is that), hotels generally make money.  That fact by itself helps them to stand out from some other 'cool industries' (think airlines, media and entertainment).

It is this last point that this entire blog will be devoted to.  We love to stay in hotels, but what we really love is the business side of hotels.  The complexity of how a hotel gets built and then gets operated and how all that results in a viable business has always been a point of fascination to us.

We started our business, Hotel Effectiveness, for the sole purpose of trying to use our skills to help hotels make more money.  This blog will share some of our insights and opinions about the business side of hotels based on working with hotel owners and managers every day, talking to a lot of industry experts, and finally reading quite widely both inside and outside the industry.  Hotels are a $130 billion+ industry in the U.S., and we don't think enough time and thought goes into how they make money and how they can make more money.

Our goal is to encourage more discussion about the business of hotels.  We hope to add something to the debate about how to make hotels more successful  businesses.  We do this because it is our fondest desire to see the industry we love continue to grow and innovate.  We know that key for this to happen is for the industry to be successful so it can attract the capital and the talented individuals that will drive its future.

Topics: Hotel Profitability