Bill Geist's Zeitgeist

Doing Right

One of the reasons tourism and hospitality remains the Rodney Dangerfield of careers for some is likely forged in their experience as a past (and pitifully compensated) employee. For others, it's likely the elitist attitude that service jobs are somehow beneath them (I no longer tolerate those people in my life). But, that may have its roots in the whole pay thing.

I'm not here to debate the $15/hour construct but, can we start to have the conversation that hospitality should increase pricing rather than pay sub-standard wages? If you need a nudge in that general direction, check out this story from Galveston.

The Spot is a gulf-side, multi-level restaurant (with locally-sourced seafood) and entertainment venue. Like most restaurants in this country, they had to close their doors to in-house dining mid-March as "the VID" became real. Sales dropped 90% and 171 of 200 employees were put on waivers. The Spot owner Dennis Byrd noticed that, as those personal stimulus checks began hitting bank accounts, sales started to tick up. And, he had a fascinating idea.

"What if I over pay my team members," he mused. Would they then go out and help stimulate the local economy, which would help everyone. A true "Pay It Forward" concept.

Dennis increased his veteran employees to $20/hour and everyone else to $15/hour. Those on salary got $250 per pay period for "hazard pay." The cost? Over $650,000.

Mind you, the business was still more than 80% off, year to year. But, it was the right thing to do...and Galveston took notice.

The Spot had the biggest May in its 22-year history.

Dennis? I don't think you overpaid your team in the least. And, I can't wait for others to take your lead and run.

Do right by your people, ensure that your customers know you've done right...and we'll pay whatever you charge.

 

Still Work to Do

You hear it. We hear it. The hushed conversations at City Hall and at County Board meetings.

"We don't need to forward last quarter's room tax to the DMO; they're not marketing anymore in this time of COVID."

Au contraire, mon amie.

You wanna know what today's DMOs have been doing? Check out this op-ed piece from Visit Sarasota's Virginia Haley.

Uh-huh.

And...thank you.

The Other Side of Recovery

Terri and I work in the Destination Marketing space, advising DMOs on governance, management, strategy, funding and development. Thus, a lot of what we post on this blog focuses on this side of the hospitality business.

Spero Batistatos (President of the South Shore IN Convention & Visitors Authority) is one of the top DMO CEO minds in our sector. Unlike me, he actually started his career in the "back of the house" at a hotel/theatre complex (where I'm quite sure we met years before we became comrades in arms because I used to introduce a number of acts at the theatre during my turn in FM rock radio).

Over the weekend, my friend penned a fascinating piece on how hospitality businesses need to be planning to successfully emerge from quarantine...from a decidedly "back of the house" mentality.

It is definitely worth your read.

Non-Essential?

Destination Marketing Organizations were, in most communities, the first agencies that jumped in to assist their communities' small businesses in the days after the Ides of March (the day travel stopped in America). And, there is little doubt that DMOs will be the agencies that lead their economies back from the brink...if they are still standing when it is time for them to perform their magic, jump-starting travel through stellar marketing.

One that will be hobbled in that effort will be British Columbia's Lake Country Chamber of Commerce, as the District that has contracted with them for destination marketing services canceled that contract last week...not just temporarily, but for the rest of the year. In a story in the Lake Country Calendar, the District's Communication Manager said it was an easy cut to make: "Funding a service that may put people at risk during this COVID‐19 pandemic may present a risk to the district both legally and financially, on top of the greater community health risk." Not that anyone at the Chamber was actively inviting visitors to their community at this moment in time. This was just convenient.

This type of logic defies reality. This is like furloughing a fire department because there haven't been any fires to fight for the past month...yet knowing that fire season is coming. DMOs will be the firefighters their communities turn to when we can again travel.

Sadly, this won't be the last time we see a story like this. DMOs need to ensure that the lifesaving work they are performing for their business community is recognized and respected. Like no other, this is our hour.

 

Handling Force Majeure

If Force Majeure was a person, besides having a pretty cool name, they'd likely have a pretty big chip on their shoulder for being ignored by virtually anybody but lawyers.

Force Majeure is a clause in many contracts that essentially allows one out of said contract in cases of natural or unavoidable catastrophes. Like a pandemic (you can hear more on the subject in our conversation with Bryan Grimaldi on the DMOU Podcast).

Leave it to Kevin Shanley and the Team at Kalahari Resorts to use Force Majeuer as a reason to book an event at one of their resorts.

Brilliant.

We Stand with Service

Sometimes we get too close to the fire to realize the friends we have and how much we mean to them. I'm sure that's how so many of our peers in the hospitality field feel this week after losing not just hours or jobs...but their connection to their work family.

Sometimes, it's the littlest things that remind us that others care.

Like this video from the South Shore Conventions & Visitors Authority.

Thank you.

How Do You Like Me Now?

They say that crisis brings out the best in so many of us. And, the stories emerging from communities across the country about how Destination Marketing Organizations pivoted on a dime when they realized what was about to descend upon the hospitality community are as heartwarming as they are expected.

Most Americans are just now beginning to understand the importance and fragility of a sector of the economy they always took for granted.  To be sure, airlines and hotels were impacted briefly after 9/11. But, most other facets of the hospitality industry felt no more than a speed bump...because residents were there to continue eating out in restaurants, meeting co-workers after work at the local watering hole and seeing music, theatre and comedy with friends. Indeed, after the initial shock of 9/11 that had us all glued to our televisions, we needed to go out and be with others.

And, in this crisis, we can't.

Never one to say "I told you so," there is the slightest satisfaction that the recent flirtation some communities have had with shopping their DMO contract out to ad agencies should likely now come to an end.  In a recent interview, the Chairman of the Board of Visit Stillwater OK (which last year went through just such an RFP process) was asked what the DMO was doing during the pandemic:  

"We have transitioned our focus from marketing to visitors to communicating to residents to better support our local business partners. Our staff has called almost 200 local businesses to promote their hours of operation, delivery, pick-up or curb-side services, online shopping options and the availability of gift cards. They continue to update the information on our website and social media throughout each day since things are continually changing. Staff has also recently added a coloring contest for kids and adults online, as well as incorporated virtual tours featuring many of our local museums, attractions and restaurants. These 360-degree images will give our residents something to look forward to and visitors' incentive to visit when traveling again."

I'm pretty sure no ad agency could ever do that.

Well done, Visit Stillwater...and all the other DMOs that know that we are the only agency in our communities prepared for days like these for our destination partners.

Remember Our Friends

As we achieve a firmer understanding regarding what the next few months are likely to bring, I am reminded of a conversation I had with a guy I met while volunteering in a homeless shelter, years ago. He had lost his white-collar job a few weeks earlier and his wife tossed him out of the house. He looked at me with a pair of the most defeated eyes I've ever seen and asked if I had a savings account. When I nodded, he smirked at me and said, "no you don't...which means you're two weeks away from being me."

I thought of that evening when I saw a post over the weekend from Irving's Maura Gast. Being ever gracious, one of our industry's top thought leaders said her words were inspired by an earlier post from Rockford's John Groh (who, of course, said his message was also inspired by others he had read). Here's part of Maura's message:

I know it’s lives first and livelihoods after that, and I respect and appreciate the important and weighty decisions that had to be made. And I’m grateful that people were willing to make the tough calls and take these most judicious of steps.

That still doesn’t stop my heart for breaking for all our partners in the service economy who rely on hours and shifts. Like my housekeeping mija Tere who walked in with me this morning. And our Ops crew who were already here. Or the food & beverage crew that had been prepped and ready for another busy day. Grateful for what might have been “extra” hours to now help strike the show that was already up and running.

But now, it settles in that those will be the last hours some folks get for the near future. And my heart is crushed for the folks that truly are the heart of the house, here and everywhere. And our clients who put everything they have into the amazing events they produce. And our partners and the other venues around Irving, and everywhere, and the various events that were already in motion. And, especially for our own ICVB and ICC teams, who pour so much love and passion for this community into everything they do.. And all the others like them throughout our hospitality family, not just here in Irving, but everywhere.

Our local restaurant community will need extra love from you during this time – if you’re sick or vulnerable, absolutely stay home but think about Uber Eats or Grubhub, or good old fashioned i Fratelli Pizza delivery. And if you’re comfortable being out, I just encourage you to think hyper-local and support all those things that make Irving special, so that they’ll be able to be here to keep Irving special.

Of course, Maura's post was made before cities and States began calling for the closure of bars and restaurants. As we begin to close out the first day of the new week, let me join Maura and others to encourage us all who are still working to remember those that rely on hourly jobs that have been cut back or eliminated (as Maura said, order delivery or restaurant gift certificates for a happier day when they reopen). Remember those musicians and artists that have no place to play (download some performances from some of your favorite local acts to keep at least a little money flowing their way). And, for every other person you know who no longer has a job today, think of how you can help, no matter how small.

And, strive to stay healthy through this crisis.

The End of Tourism as We Know It

Observers of the Destination Marketing sector watched in disbelief as forces within Sedona mounted a full-goose frontal assault on the local DMO in 2018. It's one thing to challenge community policies and strategies...but this got personally ugly.

Which is why, 18 months later, it is so cool to see an article in the Sedona Red Rock News showcasing how the DMO there has heard the complaints and moved rapidly to develop a long-term sustainability plan for the region.

This is what it means to be a Destination Marketing Organization in the third decade of this century. And, to hear the back story, check out the DMOU Podcast with Jennifer Wesselhoff. It's powerful stuff.

The End of Tourism as We Know It? Yeah...it will be Tourism as we redefine our approach to it. And, that will be different for each one of us.

Is it Me?

Or, is it increasingly impossible to find housekeepers to work their magic in America's hotels (don't answer...I know it's the latter).

I've been on the road on this merry-go-round of a gig for over 20 years. And, I've never experienced what I encountered in two of my recent business trips. Ever.

In the first episode, I came back to my room after a day of stakeholder interviews and Focus Groups to find my hotel room door propped wide open with a wooden wedge. One could only imagine how long that situation had gone on...but, certainly, by 6pm, it had been hours. I called the front desk to ask WTF? The operator lazily asked if anything was missing from my room. When I responded that I didn't think so, he said, "well, we're good then," and hung up. Really.

Then, the other day, I returned from another set of stakeholder interviews in another town to find that my room hadn't been made up. Hey, it happens. But, what was strange was that the towel, which I had purposefully hung on the shower curtain bar to do my part in saving the planet, was gone. So, not only was the room not made up, but housekeeping entered my room and ignored my request to save the environment in what appears was the only attempt they made to refresh my room. Odd, to say the least.

Here's hoping these mysterious occurrences don't come in threes...and that 2020 sees no more of these peculiar vexings.