The 2024 Americas Lodging Investment Summit in Los Angeles showcased the transformative impact of artificial intelligence (AI) on various aspects of hotel operations. However, the “People & Culture” Boardroom Outlook session, moderated by Kelly Ungerman, senior partner at McKinsey & Company, highlighted a vital point: the importance of a well-curated team of happy, engaged employees in ensuring a positive customer experience. Despite the increasing role of AI, the session revealed a consensus that a carefully selected team and high job satisfaction levels are more likely to deliver excellent customer service.
The Human Touch
Sloan Dean, CEO of Remington Hospitality, underscored this by quoting the foundational hotelier J.W. Marriott: “Take care of your associates, and your associates will take care of the guests and the rest will take care of itself.” Dean emphasized that the core of their success is the people they hire, who are highly service-oriented and capable of creating a positive work culture that extends to guests. He noted that a healthy work culture is cultivated internally and reflected externally.
Dean further asserted that success within a hotel or hotel group’s culture begins with its associates, which then affects the customer experience. Remington’s training programs are designed not only for current positions but also for associates’ long-term career paths. An example is their “Up” program, launched a year ago to train first-time supervisors and managers, preparing them for future roles. Additionally, a learning management system integrated with LinkedIn Learning supports ongoing development.
Echoing Dean’s sentiment, John Cohlan, CEO of Margaritaville Holdings, emphasized that happy employees lead to happy guests. Even with AI playing a growing role in various business aspects, the human connection remains irreplaceable. Cohlan highlighted the importance of maintaining the philosophy of the late Jimmy Buffett, whose cheerful and relaxed attitude towards life and vacations forms the core of Margaritaville’s business culture. Upholding this ethos in their training and work environment ensures employees find their jobs fulfilling and oriented towards career growth, thereby attracting individuals passionate about hospitality.
While each guest has their unique idea of the perfect vacation, Cohlan stressed that Margaritaville’s success hinges on the human connection, even with AI working in the background. AI is viewed as a tool to enhance the guest experience, making it easier for guests to enjoy a Margaritaville escape, while providing employees more time and resources to connect with them.
Power to the (Right) People
Jim Merkel, CEO and co-founder of Rockbridge Holdings, a private equity firm specializing in hospitality investment, shared insights from his 25 years in the industry. He noted that AI and other technologies are significantly impacting how consumers, especially younger demographics, research, and book hotel stays. Merkel highlighted that one key area of interest is how AI will affect search and booking processes, potentially shifting customers from platforms like Expedia to apps or ChatGPT for personalized recommendations.
Merkel’s Rockbridge team leverages technology to facilitate opportunities for hotel teams to create unique guest experiences and build stronger relationships. From its inception, Rockbridge focused on its people, ensuring that the team shared the same values of purpose, integrity, and hard work. Merkel is particularly proud of the company culture, where employees often become lifelong friends. This camaraderie and shared philosophy have been crucial to Rockbridge’s success in renovating, repositioning, and operating hotels.
Rockbridge’s recent rebranding aims to attract the right prospective employees, presenting a competitive advantage. Merkel emphasized that their business model, demanding coordination and hard work, requires a passionate and dedicated team. While this approach may not work for every company, it has been effective for Rockbridge.
A Sense of Purpose
Zack Gharib, president of Red Roof, brought valuable insights from his extensive experience in hospitality management, including roles at Marriott, Vacasa, La Quinta by Wyndham, and Highgate Homes. Upon joining Red Roof, Gharib focused on cultivating an optimum work culture. In a video meeting with employees, he sought to understand what core values and a strong work culture meant to them, aiming to build a culture from the ground up.
Gharib noted that maintaining and nurturing this culture daily is crucial. He emphasized the need for adaptability in an ever-changing industry, highlighting the importance of an inclusive culture that fosters fun and enables employees to thrive and achieve results. Gharib’s approach underscores the belief that a supportive and engaging work environment is essential for both employee satisfaction and organizational success.
The Role of Training and Development
Training and development play a crucial role in employee satisfaction and retention. Companies like Remington Hospitality and Margaritaville Holdings invest heavily in training programs that not only prepare employees for their current roles but also for future career advancements. This investment in human capital ensures that employees feel valued and see a clear path for growth within the organization.
For instance, Remington’s “Up” program is designed to train first-time supervisors and managers, equipping them with the skills needed for leadership roles. Similarly, Margaritaville’s training programs are infused with the company’s core values, ensuring that employees are not only skilled but also aligned with the company’s culture and philosophy. This alignment is crucial for maintaining a consistent and positive guest experience.
Technology as an Enabler, Not a Replacement
The 2024 Americas Lodging Investment Summit held in Los Angeles demonstrated the transformative impact artificial intelligence (AI) can have on different facets of hotel operations. Yet, the “People & Culture” Boardroom Outlook session, led by Kelly Ungerman, a senior partner at McKinsey & Company, brought attention to a crucial insight: the necessity of a thoughtfully assembled team of content and engaged employees to ensure a superior customer experience. Despite AI’s growing influence, the session reached a consensus that the key to delivering exceptional customer service lies in having a well-chosen team whose job satisfaction is high. This human element remains indispensable, suggesting that technology, while beneficial, cannot replace the unique value that motivated staff members bring to the hospitality industry. The session thus underscored the balance required between leveraging AI for efficiency and nurturing a dedicated team to drive genuine customer satisfaction.