The Refinishing Touch Blog

If you've been watching this space, or even just stumbled on our blog for a quick look, you will have noticed that we're intrigued and invested in hospitality industry. As news of today's hard-hitting times continues to drape the pages of just about every publication available, we've taken note of some trends; and highlighted five that seem to be at the forefront of the airwaves and editors' minds in the wake of the current downturn:

1. Travel industry's gloomy outlook – The airline industry has reported some of the largest passenger declines since the early 1980s.

2. Hospitality cutting back – Amenities and luxuries in hotels being reevaluated by some of the industry's largest luxury hotels.

3. Hotels working to get the world traveling again – Hotels have begun offering low rate travel packages as a means to put bodies back in rooms that have been showing vacancies more often than not.

4. Government involvement – The stimulus bill looks to create jobs across all industries, and is estimated to create or maintain 346,000 jobs for the hospitality industry.

5. Hotels turn to asset management – Hoteliers have begun turning to asset management as a means to save on bottom lines while maintaining the quality of stay on their properties for travelers.

But it's not all doom and gloom: In the next week we're going to look and question some possible benefits that have come from each of these.

Labels: economy, Hospitality, travel, trends

At the moment in time, the major financial indicators aren't the greatest that they've been for the economy. In a day and age where the terms "cost-cutting" "recession" and "financial downturn" are all common words, we recognize that this is a tough time. Each day, news of companies and organizations once thought of as untouchable are announcing plans to scale back in any way possible.

We've talked about this before. What does the recession mean for the industries we are most near and dear to? The hospitality industry has seen its largest players adopt belt tightening practices as a means to save where possible and the travel industry as a whole continues to stagger on with offers designed to get Americans traveling once again.

The Wall Street Journal recently published an article that announced the small changes that hotels are making to save on their bottom lines. It is, after all, the little things that make an otherwise ordinary travel experience one to categorize as "extraordinary."

So how much will travelers miss the lotion that was once left in the bathroom of their Marriott hotel room? Or the fresh flowers in the lobby of the Ritz Carlton? In this day and age, we know firsthand that the larger things matter most.

As we look to a recession that is expected to hold its grip for a while, it continues to be a necessity to look at the value of existing assets and plan budgets and bottom lines around economically sound decisions.

Labels: Asset Management, Hospitality, travel

The typical hustle and bustle of the holiday season around the world is missing this year due to the current economic climate. Since the US economic plunge hit, many travelers (business and leisure) throughout the world have scaled back. The global financial crisis has put a halt on the majority of travel around the world. The problem isn't the capacity for travel, the problem is creating the demand and need for it again despite current economic conditions.

Rome is one of the many cities around the globe seeing a dramatic decline in hotel occupancy.
Rome felt a 17.5 percent decline in October compared with the same month last year. In addition to hotel occupancy, global air travel has also fallen as the economic crisis takes a toll on the world economy.

The International Air Transport Association (IATA) said that international passenger traffic had decreased 1.3 percent in October compared with the previous year. As we all know, business travel helps drive both airline traffic and hotel occupancy rates. Whether for conferences held on site at hotels and resorts or at facilities elsewhere, airline traffic and hotel occupancy go hand in hand for business travel.

Premium air travel hit low in north Atlantic markets, between the US and Asia across the Pacific, and within the Middle East. Luxury brand five-star hotels, such as The Grand Hotel Plaza in Rome are also feeling the pinch. Other global cities are feeling this same pinch when it comes to hotel occupancy. Guests are looking for more affordable accommodations while they are traveling and are overlooking some of the high end properties that were once sought after.

When major global cities such as Hong Kong, Los Angeles, Madrid, New York, Paris, Toronto and Sydney start to feel the pinch - we know we are in the midst of tough times.

What's to come in 2009 is unknown at this time, however, we can only be optimistic that there will be change coming. In the meantime, we can continue to work with hotel executives to ensure budgets are in tact, existing furniture on property is maintained and guest relations continues to be a priority for those that are embarking on travel this holiday season.

Labels: economy, Hospitality, travel

This month I had the pleasure and experience of visiting the People's Republic of China. It was a combination of business - visiting our stone manufacturing facilities- and pleasure, visiting friends.

On October 2^nd after traveling more than 8,400 miles, I stepped off a Boeing 747 onto Hong Kong International Airport to change planes. I've been lucky to travel extensively throughout my life and career, but a 20 hour flight and a 12-hour time difference resulted in one of the most grueling travel experiences.

Security, something that Americans are now getting more used to since the awful events of 2001, was incredibly tight, with various levels of security checks including a point where you have to stand still for three seconds and stare into an infra-red camera.

Finally, after I'd been up for 36 hours straight, I landed in Xiamen. Xiamen is an island city situated on the south east tip. With a population of slightly over two million, it is regarded as "the most agreeable city in China." The port ranks among the country's top ten and it boasts a modern airport that has become a major aviation hub. It has a bustling economy, thanks to its designation as one of several Special Economic Zones in China and the large amount of foreign investment that the hub is known for.

After the grueling journey, I was exhausted but glad to see my friends waiting to pick me up at Xiamen airport. They drove me to the luxury that is the Sofitel Hotel in Xiamen. By then, I urgently needed a rest, and I wasn't disappointed. The hotel's standards were incredibly high with impeccably crisp and clean rooms that would be inviting to any traveler, but especially so to such a weary one!

My whole experience was a mixture of the unusual and the out-of-context, including an Italian meal in Xiamen. As an Italian-American, I have a deep love and appreciation of Italian food - though the meal itself seemed to be lacking in the 'Italian' aspect, aside from the Chianti Classico, which was authentic.

Meanwhile, my temporary 'base' of the Sofitel with its slick service and presentation, reflects my overall impression of the People's Republic of China. As a visitor, I found every part of the country that I visited to be immaculately organized and business-like. Any service was like clockwork, and while smiling and welcoming, there was a work ethic that seems to pervade every person. There was a constant sense of control and management, which, as a business person, I can fully appreciate.

My meetings were fruitful - details of those to follow in my next post - and the time I spent with my friends was unforgettable.

The worst bit? The jet lag, both on the journey out and returning home, took its toll, with my body taking days to catch up. Visiting China made me feel like I'd really traveled!

Labels: China, Hospitality, travel

The travel and hospitality industries have been driving forces in economic prosperity and growth in America. In today's economic climate, the United States is one of many countries being affected by what is now qualified as a global crisis. Daily we hear mentions of national bailouts and continue to see the effects governmental rescue efforts have on an abysmal time in the stock markets.

Banks and industry players are scrambling to gain much needed support from backers and investment firms as officials continue crafting plans to make strides toward a realistic picture of stability. Through all of this financial turmoil, we are beginning to see former stronghold industries being largely affected by the economic downturn.

The travel industry has recently shown that as in the past, it is not immune to the economic woes of the world. It is an industry that relies heavily on the stability of the economy and the people that drive business. As the global crisis continues to grip the attention of leisure and business travelers many consumers and businesses are having to rethink travel plans. While just a few months ago, the hospitality and travel industries alike could reasonably rely on international travel from abroad, these industries are realizing that this may now not be the case for the future.

With airlines reporting steep declines, travelers are forced to cope with either increased fares or hold off on travel plans in order to save money. The reality is a majority of consumers are cutting back on travel, due to the serious financial problem at large. Though they have since managed to remain unscathed, the hospitality industry is now seeing four and five star hotels being affected by the financial crisis and the hardships of the travel industry.

We here at The Refinishing Touch, like so many of our industry friends, are striving to make a difference in the hospitality industry during this tough economic climate. Now is the time when it makes more sense than ever to look at internal resources, manage assets, budgets and bottomlines. It's during the down turns that companies can become stronger in the long run when they focus on existing assets and resources.

Labels: economy, finance, Hospitality, travel