Innovators Soar to Success Thanks to Hotelie Network

Arthur & Grace Chang

Arthur & Grace Chang

If necessity is the mother of invention, extreme discomfort might be the mother of necessity, as Cornell Alumnus Arthur Chang discovered during a return flight from the Dominican Republic back in 2001. After jostling for armrest position yet again, he conceived an idea of a contraption that would provide much needed comfort to a cramped airline seat. He set the idea aside, though, as he entered into the competitive industry of hospitality consulting with Jim Coyle’s ’87 prestigious firm Coyle Hospitality Group; meanwhile, his wife and fellow Cornell Alumnus, Grace, earned her masters degree in architecture and began working in design.

The airline comfort idea never fully died, though, and in 2011 the Changs decided to bring their brainchild to life. Thanks to Arthur’s vision and Grace’s background in design, they created a sleek, lightweight, attachable armrest divider that successfully ends the fight for armrest space, allowing both sides to share equally. The couple searched for ways to bring it to market, but struggled to interest vendors in their design.

Fortunately, they belong to an innovative network of people who share their entrepreneurial spirit: The Cornell Hotel Society. Arthur and Grace began to consult with old friends and fellow Cornell Alumni, who offered valuable insight into the Changs’ branding and marketing strategy. The Changs engaged with Hotelie Kira Kohrherr ’01, who helped with the company’s rebranding;
with a new name and a strategic marketing campaign, Soarigami quickly took off.

Deeply impressed, the television marketing experts at Will It Launch brought Soarigami to “As Seen On TV,” and the Changs’ savvy invention began to revolutionize the travel industry as it received international acclaim and became the “product to have,” according to publications such as Conde Nast Traveler, Fast Company, CNN, Gizmodo, The Atlantic, and over 400 others in 50 countries.

5Thankful not only for the success of their invention but for the instrumental advice and support from their fellow Cornell alumni, the Changs were inspired to give back during Entrepreneurship@Cornell’s Annual Celebration Conference. As Arthur put it, “We were blown away by all the students who have ideas to disrupt industry and change the world. Our idea feels so small compared to these students’ (ideas).” Thus, Arthur and Grace led the way in creating the “Launch your Idea!” consumer product competition.

This competition, made possible by a deal that the Changs brokered between Entrepreneurship@Cornell and Will it Launch, will look for the next big “it” idea among Cornell students and alumni and will connect the winner directly to both funding and to the people who can bring it to market. The Changs’ biggest regret is not going to their CHS network sooner, so they are thrilled at the chance to help others by smoothing the way for fellow Cornell students and alumni.

Arthur and Grace are taking all that they’ve learned from their entrepreneurial adventure and leveraging it into the start-up world. Most significantly, they remember that this sense of community and belonging comes full circle: connected every step of the way to their fellow Hotelies, they received support to become an international success, and now will influence those who follow in their rather impressive footsteps.

Atlanta Lodging Outlook 2016

On Wednesday, September 9, 2015 the Georgia Chapter of the Cornell Hotel Society held its annual Atlanta Lodging Outlook breakfast seminar. A crowd of 325 area hotel industry professionals attended the 17th annual seminar. This year’s event was held at the InterContinental Hotel in Buckhead. Our host was Brian Ettelman ’87, Director of Catering.

Atlanta Lodging Outlook is organized by the CHS Georgia Chapter with promotional assistance from the Atlanta Convention and Visitors Bureau and the Georgia Hotel and Lodging Association. The seminar is designed to provide hotel owners and operators with the information they need to prepare their marketing plans and budgets for the upcoming year.

The CHS Georgia Chapter was honored to have Professor John B. (Jack) Corgel Ph.D., the Robert C Baker Chair of Real Estate, serve as moderator for this year’s forum. CHS chapter President Sophia Lin-Kanno ‘05 opened the proceedings, followed by Jim Sprouse, President of the Georgia Hotel & Lodging Association.

During the first half of the seminar, Professor Corgel facilitated a discussion on real estate development activity in Atlanta, and how it impacts the local lodging industry. The panelists included Jim Stormont (Johnson ’85) – President & Lead Principal of the Stormont Hospitality Group, David Marvin – Founder and President of the Legacy Property Group, and Robert Voyles – Principal & CEO of Seven Oaks Company, LLC.

Following the discussion on real estate development, a panel of local area experts presented their outlook for 2016:

  • Roger Tutterow Ph.D., Professor of Economics at Kennesaw State University
  • Mark Vaughan, EVP and Chief Sales Officer for the Atlanta Convention and Visitors Bureau
  • Mark Woodworth ’77, Senior Managing Director of PKF Hospitality Research, a CBRE Company

Proceeds from the event help support the Georgia chapter’s scholarship fund.

 

 

Innovators Soar to Success Thanks to Hotelie Network

If necessity is the mother of invention, extreme discomfort might be the mother of necessity, as Cornell Alumnus Arthur Chang discovered during a return flight from the Dominican Republic back in 2001. After jostling for armrest position yet again, he conceived an idea of a contraption that would provide much needed comfort to a cramped airline seat. He set the idea aside, though, as he entered into the competitive industry of hospitality consulting with Jim Coyle’s (’87) prestigious firm Coyle Hospitality Group; meanwhile, his wife and fellow Cornell Alumnus, Grace, earned her masters degree in architecture and began working in design.

Arthur & Grace Chang

Arthur & Grace Chang

The airline comfort idea never fully died, though, and in 2011 the Changs decided to bring their brainchild to life. Thanks to Arthur’s vision and Grace’s background in design, they created a sleek, lightweight, attachable armrest divider that successfully ends the fight for armrest space, allowing both sides to share equally. The couple searched for ways to bring it to market, but struggled to interest vendors in their design.

Fortunately, they belong to an innovative network of people who share their entrepreneurial spirit: The Cornell Hotel Society. Arthur and Grace began to consult with old friends and fellow Cornell Alumni, who offered valuable insight into the Changs’ branding and marketing strategy. The Changs engaged with Hotelie Kira Kohrherr (’01), who helped with the company’s rebranding; with a new name and a strategic marketing campaign, Soarigami quickly took off.

Deeply impressed, the television marketing experts at Will It Launch brought Soarigami to “As Seen On TV,” and the Changs’ savvy invention began to revolutionize the travel industry as it received international acclaim and became the “product to have,” according to publications such as Conde Nast Traveler, Fast Company, CNN, Gizmodo, The Atlantic, and over 400 others in 50 countries.

Thankful not only for the success of their invention but for the instrumental advice and support from their fellow Cornell alumni, the Changs were inspired to give back during Entrepreneurship@Cornell’s Annual Celebration Conference. As Arthur put it, “We were blown away by all the students who have ideas to disrupt industry and change the world. Our idea feels so small compared to these students’ (ideas).” Thus, Arthur and Grace led the way in creating the “Launch your Idea!” consumer product competition.

5This competition, made possible by a deal that the Changs brokered between Entrepreneurship@Cornell and Will it Launch, will look for the next big “it” idea among Cornell students and alumni and will connect the winner directly to both funding and to the people who can bring it to market. The Changs’ biggest regret is not going to their CHS network sooner, so they are thrilled at the chance to help others by smoothing the way for fellow Cornell students and alumni.

Arthur and Grace are taking all that they’ve learned from their entrepreneurial adventure and leveraging it into the start-up world. Most significantly, they remember that this sense of community and belonging comes full circle: connected every step of the way to their fellow Hotelies, they received support to become an international success, and now will influence those who follow in their rather impressive footsteps.

Cruise Lines: Hospitality Management on the Move

With a steady pattern of growth, the cruise industry offers a lucrative opportunity for those seeking something different in hospitality. The complexities of managing a moving hotel complete with restaurants, shopping, activities, entertainment, and shore tours — not to mention the maintenance and mechanics of the ship itself — create amazing opportunities to further personal and professional growth and development, as Thatcher Brown ’91 has discovered.

brown-37In the midst of a thriving global career that included a broad range of experience in brand strategy and management, hotel operations, marketing, and product and development, Brown, Vice President of On Board Revenue and Product Development at Costa Crociere, found the challenges of this multifaceted industry to be irresistible. His concentration in International Management continues to serve him well as his responsibilities extend across the “Seven Seas.”

“It’s been an exciting time for me to apply so many different disciplines into such a dynamic role,” Brown said. “Research, analysis, marketing, branding, guest engagement and experience, digital and traditional communications—it’s challenging. Beyond this, being based in Italy and serving multiple markets in Europe, South America, and Asia adds fascinating cultural dimensions. The scale, complexity, and logistics involved with delivering consistent and exceptional quality is staggering given that our ships are deployed all over the world. The cruise industry is remarkable in how they manage and optimize such a capital intensive, multifaceted business.”

Cruise lines are confronted with a number of variables that aren’t always present in land-based hospitality. The constant movement of the vessels requires a great deal of behind-the-scenes attention. From adapting on-board food and beverage offers to the cultural norms of diverse source markets to the extensive day-to-day maintenance requirements of operating a ship that carries thousands of passengers, the intricacies of management can be challenging. Overall, however, the founding principles of exceptional service and relentless execution of a clear brand and business strategy do not change.

“It all boils down to what we first learned as ‘hotelies’: listening to your guests, being passionate about delivering exceptional service and optimizing your business proposition … and, of course, ‘location, location, location’ (itinerary and destination development in the case of the cruise industry),” says Brown. “One of the challenges both on the hotel side and the cruise side is, how do you distinguish yourself through relevant value propositions that support your distinct positioning? The winners are the brands that sustain growth by challenging the norms, both on incremental and step-change levels, to create better yields and competitive advantage. Every day, I am proud to bring to my profession a curiosity, a passion to make a positive difference, and a work ethic that I credit a great deal to my Cornell and Statler Hall days.”

Cultivating the Digital Hospitality Experience

yotel

Yotel brings fresh insight to the modern guest experience.

The way travelers views accommodations is changing — and Yotel is at the forefront of this market dynamic. Yotel is a unique series of hotels offering intimate, artfully designed spaces that combine affordable luxury with a clean, tech-driven approach and a Japanese-inspired aesthetic. Offering three airport-based hotels in London and Amsterdam, as well as a 600-cabin hotel in New York City, Yotel is reshaping the industry’s approach to lodging. They’ve successfully positioned themselves as a digital leader in hotels through implementation of the latest technology and a hyperawareness of the needs of today’s modern guest.

“We look at the hospitality industry and take things from a technology perspective,” explains Jason Brown ’05, Chief Development Officer at Yotel. “An example of that is the check-in kiosk. The airlines have done a great job over the last 20 years of getting people used to checking in on kiosks, but that had never been done in hotels before because it was said that no one would ever use them. But it was actually fantastic—95%+ of our check-ins and checkouts are done at kiosks now. And this really frees up our crew members’ time to do what they are supposed to do—deliver exceptional hospitality.”

Each Yotel offers guests simple, thoughtfully designed rooms that provide luxury without the expensive provisions that tend to spike the prices of other rooms. Guests enjoy free wifi, workspaces with printers, galley kitchens with complimentary beverages, and other offerings that cater to today’s budget-savvy consumer. The New York location features robotic luggage storage and numerous spaces for mixing and mingling, while Yotel’s airport locations offer guests in-terminal accommodations that are bookable in hourly increments, providing a respite for travelers to rest or work between flights. “We’ve created an environment where guests can work, play, eat, and sleep — delivered in a digital footprint,” says Brown.

Yotel has enjoyed incredible success with this model, building on its original European offerings to its New York location the United States. Plans for expansion include the 2018 opening of a 600-cabin hotel in the heart of Singapore’s bustling fashion district.

Extensive Cornell analysis shows real impact of hotel loyalty program

by Peter Glanville

Cornell’s School of Hotel Administration has released a compelling study measuring the direct impact of the Stash Rewards loyalty program on hotels, one of the first detailed studies showing how a loyalty program affects actual loyalty.

SHA2The main limitation is the focus on the third-party Stash Rewards program, as it does not offer conclusions related to the performance of existing hotel chains’ loyalty programs. Nonetheless, the study details just how independent chains can benefit from a third-party program – and Stash Rewards is, according to the company, the largest program for independent hotels in the United States.

The study considered two separate hotel groups: one of is a regional group with over a dozen properties with an ADR of $73 and the other is a more upscale, with an ADR of $261 across more than dozen properties. By using a statistical procedure known as “coarsened exact matching,” the study authors ensured that each data point is matched with a similar one for comparison purposes.

This means that each member was matched with a non-member, with the matched pairs occurring between guests that had the most comparable spending patterns in the 365 day period before enrolling in the loyalty program. One of the matches then enrolled in the program, while the other remained a non-member, allowing the behavior to be compared to see how spending was affected in the 365 day period post-enrollment.

 

Read more at here.

Sticktion: Memory as the catalyst for a better customer experience

 

SHA1Lou Carbone, CEO of Experience Engineering, came to share his work with Professor Kathy LaTour’s marketing classes (services marketing, principles of marketing). Carbone and LaTour have been working together on various projects for the last fifteen years, after meeting at the Mind of the Market Lab at the Harvard Business School.


Professor LaTour’s work on memory reconstruction offered important insights into how marketers can “backward”-frame an experience by influencing how consumers remembered the event. Carbone’s work on experience design had primarily focused on engineering the experience prior and during by implementing clues that guide how consumers interpret the experience. Most recently they published an article in the Cornell Hospitality Quarterly on “Sticktion: Assessing Memory for the Customer Experience”

Cornell student builds a new measurement tool for company

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By Sherrie Negrea

 

The Leading Hotels of the World, Ltd. (LHW) describes itself as a company that “offers all kinds of one-of-a-kind luxury hotels, resorts and spas.” The 430 independent hotels that are part of the consortium, however, all use the same marketing, sales network, and reservation system as part of their membership in the New York-based company.

The benefit of the membership can be optimized if the hotels take advantage of the services provided by LHW, which includes support in 25 cities around the globe. To gauge how the hotels were using its offerings, LHW decided that creating a hotel engagement scorecard would be one of its four goals for 2014.

1Ted Teng ’79, president and chief executive officer of LHW, suggested the company work with the Leland C. and Mary M Pillsbury Institute for Hospitality Entrepreneurship at SHA to research how a measurement tool could be created to evaluate the member hotels’ engagement. Teng, who has led the company since 2008, is a member of the advisory board of the Pillsbury Institute.

Top-notch students bring a fresh perspective

“We knew the quality of the students,” said Deniz Omurgonulsen ’00, the company’s vice president for membership. “We knew they would bring a fresh perspective and an opportunity to test the measurement of engagement to results.”

Last January, Mona Anita Olsen ’04, assistant academic director of the Pillsbury Institute, started to work with MBA student, Saniya Gandhi’15, to conduct the research for the engagement tool in an independent study project. Before starting her MBA program, Gandhi had spent three years working with her family in Thailand to develop a hotel in the heart of Bangkok.

During the spring semester, Gandhi worked with the executive team in New York to build a computer-based scorecard to measure the level of engagement among the member hotels with the company’s services. Gandhi interviewed managers at selected hotels across the world, from South Africa to the Caribbean, which the company considered “highly engaged,” said Hakan Ozakbas, the company’s director of analytics.”We wanted to talk to them to find out about their best practices and how other hotels could learn and leverage that same behavior,” Ozakbas said.

In May, Gandhi and Olsen presented her engagement scorecard — a tool that measures a hotel’s engagement in membership, distribution, sales, and marketing — to the company’s executive team in New York. A score of 100 would be awarded to hotels that were highly engaged in using the services provided by LHW.

SHA3“We never had an engagement scorecard before,” Omurgonulsen said. “We only had quality inspections taking place once a year and financial reporting that was separate. The whole idea of the scorecard was that it would take into account other components such as finance, operations, and engagement to give us a holistic view of performance.”

LHW believes in many cases that increasing the engagement will boost a hotel’s performance. LHW recommends that the hotels increase their engagement in as many different services suitable for their business needs in order to optimize their revenue.

“It’s a two-way street,” Ozakbas said. “The hotels need help generating that revenue. How are they going to get that help? They need to be engaged in each of those four attributes.” Now that the scorecard has been completed, LHW plans to run the tool on salesforce.com, a platform it already uses. As the tool is implemented by the company in 2015, it is expected to have a significant impact on the way the company works with its member hotels.

“It will change the conversations once we look at the results for each of our properties,” Ozakbas said. “It will provide us with a more systematic tool to better evaluate how each point of engagement contributed to the revenue growth for each property.”

You can make a global hospitality impact too. Sign up with the Connect Entrepreneurial Hotelies Mentor Network.

CHS Annual Meeting

CHS General Membership Meeting 3/18/16 at HEC

A replay of the meeting, including the panel discussion with three SHA faculty representatives on the College of Business Faculty Governance Committee, can be found using the following link

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Alumni from around the world attended the CHS annual meeting during the 2014 International Hotel, Motel + Restaurant Show in New York City last November.

Held at the New York Hilton Midtown, attendees enjoyed a continental breakfast, a State of the School address from Dean Michael Johnson, and an alumni panel of food and beverage entrepreneurs facilitated by Professor Ben Lawrence ’97. Guest panelists included Peter Karpinski ‘99, Co-Founder, Sage Restaurant Group; Jon Meadow ’02, Founder, LDV Hospitality; Sabato Sagaria ’97, Chief Restaurant Officer, Union Square Hospitality Group; and, Susan Sarich ’91, Founder, SusieCakes.


Each alumnus exemplified different perspectives of the industry and the challenges they have faced throughout their career. One of themes that emerged was to not be afraid of, and to learn from failure. The panelists further acknowledged their respective successes on the educational foundation they garnered from the School of Adminstration, which provided them the confidence to pursue their passions; and the strength of the alumni network, which supported them in unexpected ways.

 

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AlpAdria and Eastern European Chapter Hosts Annual Meeting

Chapter members from Italy, Switzerland, Hungary and Austria convened in September in Vienna, Austria, at 25Hours hotel for the AlpAdria and Eastern European meeting to review chapter happenings, network and plan for the year ahead. Attendees also toured the newly renovated Hotel Bristol with General Manager Gerald Krischek, visited a new hotel development at “Schubertring” with architect, Christian Heiss, and enjoyed a variety of fun activities including dinners, brunches, and dancing at various locales throughout the city. The event included board activities and elections, as well as relevant lectures, presentations from prominent industry professionals, and candid dialogue about the future of the Eastern European hospitality industry.

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