The Dealmakers’ Ballroom: Where the future is conceived

by Tom Johansmeyer on

The seeds of economic recovery will be sewn in the travel industry. No, it will not be the hotels that pump new jobs out onto the market, and it certainly won’t be the airlines, which seem locked in perpetual battle against any positive influence the economy can have on them. Rather, the future will come from inside the hotels – specifically their lobbies. Historically, this venue has been the den of entrepreneurs with high hopes, small starts and an opportunity to pitch their wares. When lobby action heats up, you can forget about the unemployment rate or the value of the dollar against the euro – the economy will begin to come back.

As I mentioned yesterday, I spent most of the past decade not paying too much attention to hotel lobbies and the people in them … you know, like every other traveler does. Lobbies constituted a space between the present and the goal, whether you were entering the hotel or leaving it. To me, they were nothing more than a space to be traversed. My perspective changed this year, and I haven’t been able to get out of my head that every time I walk to my guestroom, I might be passing my next boss.

Hotel lobbies are an obvious choice for business professionals and startup jockeys. They tend to be large, have plenty of seating and afford a considerable degree of anonymity. People come and go all the time, and they generally mind their own business. Even the hotel staff will leave you alone, as long as you stay as unnoticeable as possible and don’t disrupt the guests (it also doesn’t hurt to buy a drink at the bar every now and then). The confluence of these factors means that the entrepreneur can flip open his laptop and walk a potential client or investor through his hopes and dreams, all crisply and clearly detailed in a PowerPoint presentation.I have been to my share of hotel lobbies. My most recent experience came only a few weeks ago, at the Union Square W Hotel. A friend of mine (no names, it’s still early in the proces), invited me to discuss with her and her partner a new business venture they were exploring. On the corner of E 17th St. and Park Avenue South, I dropped my cigar to the street and nudged it softly with my toe through the sewer grate underfoot. With that one fluid motion, my mind raced back to Boston, almost a decade earlier.

The carnage from the collapse of the dotcom economy was still visible back then. Two years after the NASDAQ took its initial plunge and a year after Enron hit the skids, the tech industry up there was in disarray. Networking events held by the Massachusetts eCommerce Association had become job-hunting dens, populated only with buyers – there were no sellers to be found. Of course, entrepreneurship is born of economic woe, as bright minds unable to find a paycheck from someone else are forced to turn to the dreams they’ve nurtured quietly for years – decades, even.

It was against this backdrop that I let my cigar butt fall to the ground where Dartmouth, St. James and Huntington converge and pushed through the revolving doors to the Westin Copley Place Hotel. I met a familiar face in the lobby at the top o f the escalator. No names, of course, even this far down the road – but, he was tall, a tad gaunt and had the obvious look of the academic he had once been. Doc, I’ll call him, had developed an unusual and interesting bit of software – the kind of thing that would have mattered only to a relatively small community of people with deep pockets – that he was trying to peddle in a market that didn’t favor anything with a price tag.

I joined Doc on the couch in the Westin lobby, which was buzzing with the activity of tourists and locals milling around the adjacent Grettacole salon and spa, and he began to discuss his appreciation for hotel lobbies. They offered plenty of space at the right price, and the comings and goings of people who aren’t permanent provided a sufficient screen behind which to hide from employees. He’d held meetings in countless lobbies, he explained, and had no plans to abandon the practice.

I was in no position to criticize. Having just started a consulting firm of my own, I’d done the same thing on a few occasions. My partners and I routinely met in public spaces, including the Amtrak/commuter rail station on Route 128, but none compared to hotel lobbies, which were closer to home, far more comfortable and within stumbling distance of an endless list of restaurants and bars. If the conversation went well in a hotel lobby, you could always go celebrate with a drink afterward.

Doc and I used the same hotel lobby regularly for more than a year, sometimes to meet with each other, and often to pursue our own separate agendas. I ran into other entrepreneurs there, as well. So, I wasn’t surprised when I was summoned to the W at Union Square this year – twice (by two different entrepreneurs).

When I strode into the lobby this year, in the comfortable position of being pitched rather than doing the pitching, I took a look around. The couches weren’t packed, but you certainly wouldn’t get one of your own if you wanted to sit for a moment. There were individuals working alone, fixated on computer screens and scribbling on notepads. I also saw a few groups, huddled around glowing screens, looking over each other’s shoulders and whispering ideas. They could have been business travelers and guests of the hotel, putting their heads together for a quick strategy session before dashing off to see a client, but I sensed otherwise. Memories don’t fade all that easily.

Finally, I saw a hand wave and quickly made my way to the meeting I was about to attend. In a strange way, it felt like home. Within seconds, I was tete-a-tete-a-tete with two people ready to change the world. I felt 30 pounds lighter, nine years younger and almost like I had a full head of hair again.

If you feel down about the current state of our economy, stroll through a big city’s hotel lobby. It might be hard to feel better, but you can be sure a few people in there are working on the cure for what ails you.

This is a week-long series from the writer of White Collar Travel about the role hotels will play not only in the recovery of our economy, but in giving an early home to the businesses that will define tomorrow.

Hampton Inns hands out free food on Thursday in NYC

by Melanie Nayer on

Hampton Inn is teaming up with Guy Fieri to hand out free waffles (and so much more) this Thursday in New York City. Show up at Herald Square park at 6am and register for a plethora of gifts and prizes! Don’t worry if you can’t drag yourself out of bed that early – the waffles will be free until noon.

Why waffles? Why not!

Actually, there is a legitimate reason for the free food. The Hampton Inn will introduce freshly-baked waffles to its nationwide hotels’ breakfast choices, and what better way to celebrate than with free food. These waffles come with a bit of celebrity action, too: Chef Guy Fieri and his son Hunter, will be passing out the waffles. Bonus: If you’re among the first 50 to show up and present the official Facebook invite you’ll get a prize pack including a waffle baker, waffle mix, Hampton apron and tote bag.

Details: Wake Up with Waffles
Date: June 17, 2010 Time: 6 a.m. – 12 p.m. EDT
Place: Herald Square Park, Manhattan, New York City, NY
Price: Free to the public
RSVP: Facebook

The Dealmakers’ Ballroom: Understanding the hotel lobby phenomenon

by Tom Johansmeyer on

Where will the future of our economy – from the global economy, even – come from? Forget about garages in Silicon Valley, illicit side projects in Manhattan cubicle farms and the online tinkering that happens in the Harvard dorms. Instead, take a look at hotels. Specifically, peek into the lobbies.

As travelers, we pass through the hotel lobby. The only reason to stick around is because you’re waiting to meet a local friend or your kid forgot something and had to run back up to the room. Sure, there are lobby bars that give you a reason to hang out for a while, but that’s not really the lobby. I’m talking about the couches and chairs that may be festooned with the day’s newspaper but don’t come with drink service or any other raison d’etre.

Yet, as hotel guests walk from the front door to the elevator bank, especially in major cities, there are always a few people lingering, alone or in groups. They talk in hushed tones, pluck away at laptop keys and occasionally shuffle papers. These transients look like any other business traveler … because they have trained themselves to blend in.

The reality is not what it seems.Hotel lobbies offer great places to meet. You can usually pick up a wi-fi connection, people come and go without asking questions and there’s plenty of traffic to conceal the fact that you don’t belong. And, you don’t. If you’re among these hotel-squatters, you’re not a guest of the hotel, and you probably shouldn’t be availing yourself of the free meeting space. Nonetheless, it happens all the time – and good things come from it.

Cash-strapped entrepreneurs have been using free spaces to meet for years. I first saw (and took part in) the practice in late 2001, when the Boston area was reeling from the dual pressures of the dotcom market’s implosion and the economic effects of the September 11, 2001 terror attacks. I was starting a business at the time, and I was meeting with other entrepreneurs to discuss potential partnerships. Though we met in Starbucks locations, train stations and any number of public places, hotel lobbies were always the most comfortable.

And of course, I didn’t want to bring any potential business partner to my apartment (or my neighborhood, for that matter).

All that was almost a decade ago, and I haven’t spent a whole lot of time meeting in hotel lobbies since then – until this year. In the past few months, I’ve already been to two business meetings at the W Hotel Union Square in New York to talk to entrepreneurs with grand dreams and carefully managed execution plans. It occurred to me that the ashes of the financial crisis are awaiting their Phoenix, and I may have met it.

Hotel lobbies do serve a purpose, even if not for the hotel or its guests. This week, we’ll take a look at how entrepreneurs use these vast, free spaces to take their shots at becoming your next employer.

This is a week-long series from the writer of White Collar Travel about the role hotels will play not only in the recovery of our economy, but in giving an early home to the businesses that will define tomorrow.

Top items stolen from hotels – from towels to plasma TV’s

by Scott Carmichael on

During the past 18 months, I’ve been collecting information from every hotel I’ve visited – I’ve made it part of my trip to ask the hotel front desk staff what their experiences have been with theft from their rooms.

With the exception of 2 properties (one almost called the cops on me), 47 of them were more than willing to share their experiences, one even went so far as to set up a meeting with their loss prevention manager to discuss the topic – and as it turns out, theft is a major issue for all hotels.

Of course, a collection of results from 47 hotels is not exactly a scientific survey, but it does give a bit of an idea of the scope of what people help themselves to during their stay.
#1 – Towels

This one wasn’t all that surprising – towels are by far the number 1 item people help themselves to. In fact, one 415 room hotel I chatted with has an annual budget exceeding $140,000 just to replace stolen towels. Pool towels disappear more than in-room towels, and a member of housekeeping told me that guests take those because there is no way for anyone to know how many you use (whereas in-room towels are often counted).

#2 – Bedding

I’m not a fan of hotel beds – but apparently there are plenty of people that love the feel of hotel sheets, pillows, blankets and comforters, because bedding is the second most stolen item.

#3 – Silverware / kitchen items / room service items

Cups, plates, glassware, trays, pots, pans and a microwave. Sticky fingers take advantage of the added amenities found in the hospitality industry to stock their own kitchen. The damage is the largest at extended stay properties, where guests are provided with more than just a coffee maker and ice bucket. And yes – the ice bucket is also a very popular item. Gross.

Room service items are also high on the list. One property started tracking what they delivered to rooms, and what they got back, and realized 10% of the silverware, plates and trays delivered never got returned. Now, I agree that room service is an overpriced scam, and it may feel like the hotel is stealing from you, but to recoup your losses by stealing from the hotel is just plain mean.

#4 – Bathroom products

No – I’m not referring to the complimentary shower gel, but more about the pricier items like hair dryers, make-up mirrors and towel bars. One property with just over 100 rooms goes through 3 hair dryers a week. Even the iron and ironing board are not immune from being taken.

#5 – Electronics

Hotel thieves have no shame – as soon as a hotel adds something nice, thieves will start stealing it. In-room phones (even though they are useless outside the hotel), DVD players, remote controls, Internet connectivity cables and yes – TV’s.

There is apparently a reason the TV is bolted down, because the new LCD and plasma TV’s installed in hotel rooms disappear at a fairly alarming rate. Obviously not daily, but one loss prevention manager told me he has at least one case a month of a vanishing TV. My biggest question is how the hell people are able to get the TV out of the hotel without anyone noticing. Thankfully, hotel technology is improving, and systems are being added to detect theft.

#6 – Furniture and lightbulbs

Trash cans, office chairs and paintings/mirrors are amongst the items stolen from hotel rooms. One property I spoke to was trying to get a $900 Aeron office chair returned, after a guest “accidentally” removed it. The best part of that theft? Hotel video cameras caught the guest rolling it out a side door when they used it as a luggage cart. The guest claims they forgot to return it to their room.

Lightbulbs are another item you’d never expect people to steal – but these items disappear so often, that some hotels have had to add them to the housekeeping cart so they can be replaced as soon as they disappear. I guess people feel it is perfectly acceptable to steal $4 light bulbs instead of just buying them.

#7 – Signs

This one took me by surprise – because I never realized people would actually be bothered to steal signs. According to one front desk manager, hotel signs are stolen mostly by drunk guests, who figure the sign will look good on their front door at home.

#8 – insane items…

A window mounted air conditioning unit (weighing over 300 lb.), a desk, a color copier (from a meeting room) and the sliding doors off a wardrobe – these are just some of the crazier items that have been taken from hotel rooms. Some of these items could be described as “the cost of doing business”, others are just plain crazy.

Sadly, the price of theft impacts us all, because the more people steal, the higher hotel prices will go.

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Hotels explore a la carte pricing

by Tom Johansmeyer on

We’ve spent plenty of electrons over the past two years griping about the almost comstantly arising airline fees. Paying to check bags, get blankets and so on has become part of the misery that comes with getting on a plane these days. Meanwhile, the hospitality industry managed to stay above the fray. The same pressures affecting the airlines came to bear on hotels, as well. And, the constraints on credit made it even worse, with buildings in progress struggling under the weight of insufficient or expensive capital.

Now, there are grumblings that hotels could follow the airlines. Look out for some extra fees.

That hotels would adopt an a la carte model isn’t surprising. Rather, it’s almost shocking that it’s taken this long. A recovery in the hospitality sector isn’t expected to begin until 2011, and like airlines, hotels sell a perishable commodity. For an airline, an empty seat on a particular flight can never be sold later. If 34C from New York to Las Vegas at 7 PM on July 2, 2010 is empty, it represents money that will never come in the door. Likewise, if hotel room 345 in Las Vegas is empty that night, it can never be recovered.

The money needs to come from somewhere else.Of course, hotels are no strangers to additional fees. Many charge for internet access and use of the gym, among other amenities. And, like the airlines, they cut staff and perks throughout the financial crisis and its aftermath, a situation that has not gone unnoticed. What’s on the horizon, however, could be extreme.

Could you imagine paying for use of the television? Housekeeping? Towels?

A hotel in Europe, easyHotel, is playing with this model. For low room rates, it will be hard to beat: it can get as low as $35 a night. But, the towel fees essentially mean that you’ll need to pay to shower. It will be interesting to see how this unfolds, but I’m not sure the model will be broadly applicable.

There’s more competition among hotels than there is among airlines – mainly because we have more choices available. Depending on your hometown and destination, the flights you can take are limited, even if you’re headed to a major city. Once you hit the ground, however, there are usually a number of hotels from which to choose. Often, you can pick from properties in a similar category (e.g., extended stay). With hotels eager to get guests in the door, it’s unlikely that fee-laden stays will get much traction.

Generally, I’m supportive of anything that can help a business turn a profit (that’s why they exist, after all), but I get the feeling that a la carte hotels will be niche at best. What do you think about this?