Skip to main content

Adding More Supplies to Current Lodging Industry --- Is It a Threat or an Opportunity?

In today’s class, a student presented a January 19th’s article in New York Times. According to this article, almost 100 new hotels are scheduled to open in the U.S. in 2010. New York City alone will add 46 more properties. While hoteliers are already struggling to fill their existing rooms, why will developers add more supplies to the market?

Students recognized the market’s “hysteresis effect”--- many of these hotels were under construction before 2008 when the market had an occupancy rate of 85%. Thus, the recession will not stop the supplies until 2011 or after. Students wondered how this “hysteresis effect” would affect their career opportunities when they graduate and enter the job market in 2011 and beyond.

Recession seems a threat to many people because it is often associated with fewer demands in a more competitive market. However, I argue recession could also bring a life-time opportunity to us. How so? When everyone is trying to sell everything in the market, developers may be able to find the cheapest estate, negotiate with the lowest construction price, and attract the most talented employees who have been laid off for months. Customers may also find the best hotel and vacation deals.

I understand why students worry about their future in a job market like this. I know how difficult to secure a job offer these days (I was in the market 8 months ago). I see the opportunities for my students because they have already noticed the challenges and want to prepare themselves for the future. In order to conquer difficulties, people work harder and become more creative, which pushes the “good students” to become “the best students/candidates.” The opportunities will seek the best students who work hard in school and at work, build on their strengths and leadership, and exceed their potentials. I hope the recession will end soon, but it is up to you to decide whether it is a threat or an opportunity.

References:
New York Times: http://www.nytimes.com/2010/01/19/business/19hotels.html?pagewanted=print
Picture was copied from http://www.palomar.edu/counseling/careercenter/LocalCareerFairs/home.htm.

Comments

  1. Hi. Greetings. This post is really good and blog is really interesting. It gives good details.



    Hospitality Supplies

    ReplyDelete

Post a Comment

Popular posts from this blog

Want a job at McDonald’s? Now, it is as easy as talking to Alexa

McDonald’s Corporation introduced the world’s first voice-initiated job application process called McDonald’s Apply Thru. Now, job seekers can initiate the job application process through McDonald’s Apply Thru by taking to either Alexa or Google Assistant.

How McDonald’s Apply Thru works
The job application process begins with the applicants saying:
Alexa, help me get a job at McDonald’s.” 
or
“Google, help me get a job at McDonald’s.”
Then, the job applicants will need to answer a few basic questions, including their name, job of interest, and the location where they want to work.
Afterward, the job applicants will receive a text message with a hyperlink that will take the applicants to continue the rest of the application process.  
Where McDonald’s Apply Thru serve
McDonald’s Apply Thru is now available in nine countries, including the U.S., U.K., Canada, Australia, France, Germany, Ireland, Italy, and Spain. It will be made available to other countries in the coming months.
Why McDona…

Is today's market too tough for upscale restaurants?

Operating a restaurant is never easy, but is it particularly challenging for upscale restaurants?

Restaurants Unlimited Inc., for instance, which operates 35 fine-dining and “polished casual” eateries, filed for bankruptcy in Delaware last week. Earlier in June, the Four Seasons Restaurant, an iconic spot for power lunch in Manhattan also closed for business after its reopening within less a year.

Are these two examples an isolated case or the tip of the iceberg? Then, if upscale restaurants are struggling to survive in today’s market, what challenges are they facing?

The rising labor cost

According to the Bloomberg report, Restaurant Unlimited Inc. hires 50 salaried employees at the chain’s headquarter in Seattle, plus another 168 full-time and 1,885 part-time restaurant workers. The rising wages in Seattle, San Francisco, and Portland have resulted in a total of $10.6 million wage expenses in the fiscal year of 2019. Nevertheless, its revenue for the year ended in May dropped 1%, at $…

Suggestive Selling – All You Have to Do is Ask!! (By Nicole Lee)

A simple, relatively normal thing occurred while in the drive-through at Del Taco with my boyfriend the other day.After placing our semi-high maintenance food order, the person taking my order, in a forced monotone voice, unenthusiastically asks, “Would you like to add our new blah, blah, blah for dessert?”All my sweet-tooth-driven ears heard was “dessert” and I wanted something sugary to complete my four-course drive-through meal. My boyfriend asked if I wanted the donut thing they were trying to push, but I ended up going with a churro.As we received our food, my boyfriend told the server, “Good job on the upsell.”In which we received the same unenthusiastic “thank you” in reply. This all led to a discussion about suggestive selling, how easy it is, how to do it correctly, and how beneficial it is.Of course, this Del Taco drive-through upsell experience did not meet our standards of how to do it correctly, but it worked!

Easy-Peasy
Both my boyfriend and I have sales and hospitality ba…