Wake Up and Smell the Next Downturn Brewing
By Steven Belmonte CEO, Vimana Franchise Systems LLC | January 06, 2010
I've been working in the hospitality industry since I was a teenager, so I've had a lot of time to observe it and figure out how to succeed in it-and how not to. Over the years I've identified an ever-present barrier to success that always seems to keep us from maximizing our profits. It's a part of the human condition that affects us all, but we never seem to realize it until after the fact.
This barrier is our tendency to have short memories.
It's said that we have no memory for pain, and I suppose it's true. How else, for example, could women give birth more than once? How else could we survive the painful task of uprooting our family and moving them from a place we call home to some other place, many of us several times? A short memory might be a plus in instances like these-but it's always a negative when it comes to the hotel business.
You read the trades, talk to fellow hoteliers, make the conference circuit and hear all the good news. Times are good right now. Rates are up, occupancy is up, RevPAR is up, it's all turned around from the doldrums of recent years and everybody's happy: Your creditors are happy, your lender is happy, and best of all, you're happy. You're making more money, you're playing more golf and you're taking bigger and better vacations.
Life is good-and if you listen to most industry pundits, it's going to get even better. It won't be long before you'll be able to do the things you've been putting off . . . like trading up to that Lexus, building your dream house, maybe even buying or building your next hotel. Talk about Heaven on earth, right? And isn't it about time?
Actually, it's about time to wake up from that dream.