by Steven J. Belmonte, retired President and CEO, Ramada Franchise Systems, Inc.

(The first of three presentations made to Symposia held at Roosevelt University's Manfred Steinfeld School of Tourism and Hospitality Management. All rights reserved. Any use without permission of the author is prohibited.)

orget chocolates on the pillow and French milled soap. What separates winners from losers in the hotel industry is service: friendly interaction provided by caring, competent employees. Luxury hotel companies have always known this, and have spent money to make sure their customers receive the very best. Now, Ramada is setting the mid-tier lodging standard for excellent customer service with an innovative initiative, "Personal Best Hospitality."

In today's competitive marketplace, mid-tier hotel companies had better get the message: training is not an unaffordable luxury. It should be used to create a reliable service culture in which employees are motivated and committed. Why? Ultimately, the hotel business is about people. Our business is personal. A desk clerk's relationship with the customer is personal. The smile and greeting that the maintenance man gives the guest walking down the hall is personal. The housekeeper's desire to make that guestrooms look perfect is personal.

We are not talking about rocket science here. Each one of us is a consumer; each of our employees is a consumer; each of us knows exactly how we like to be treated in restaurants, department stores, repair shops, and hotels. Each of us feels good, feels important when a clerk in a store says, "Good morning, Mr. Smith, it's nice to see you again" or the hostess in a restaurant says, "Hello, Mr. Smith, it's been a long time since you've been here for dinner." It's not difficult. It doesn't cost anything. And let me tell you - that smile, that greeting, shows up on the bottom line. The desire to be recognized, to be considered important is not superficial. It is a basic human drive. In this tough, competitive business, the customers of today are deciding what hotel company to select based not only a clean, safe, attractive room but also a pleasant, friendly hotel staff.

So how do we create a service culture in each and every hotel? In my travels around the country I hear a constant refrain from hotel owners, corporate VP's of operations and general managers -- employee turnover is the number one problem; employees don't care, they're not responsible; they don't show up for work, and payroll costs are going through the roof. And on and on...

Forgive my bluntness when I say: what a crock! James Perkins, senior vice president at Federal Express, has stated a simple truth: "The way employees treat customers reflects the manner in which they are treated by management." We, and I mean nearly every owner and general manager in our industry, are in a state of denial. We refuse to admit we have a problem and attempt to place the responsibility somewhere else. We need a reality check. Indifferent, uncommunicative management is the issue. We are the enemy, not our employees.

Let's face it. Too many front line employees, desk clerks and housekeepers are underpaid, untrained and unmotivated. It is our responsibility to pay a decent wage, and train and motivate our people. That's our job. As I get older, I understand more and more the value and the importance of leadership. As an owner, a general manager, or department head, we set the culture, and control the atmosphere for our employees. What must we do as managers? How do we instill desire, drive and competence in our employees? The answers are simple and straightforward.

First and foremost, we must combat the perception that service jobs are not a worthwhile occupation. The hospitality and restaurant businesses are the last of the major industries where formal education is not a pre-requisite for advancement. The very first step then is for hotel owners, executives and managers to tell the new front desk clerk or night auditor or housekeeper that his or her entry-level position is not a dead end. That it is, in fact, an open door to a rewarding future, and that the only limitation to advancement is an employee's level of desire or persistence. We must tell employees that they have not only started a job, they have started on a career path. Someone once said, "the secret to motivation is hope."

That's step #1. Everything else logically follows. As managers we must manage through motivation, not through organizational control. We cannot let systems and procedures manage us and stand in the way of serving the customer.

Next, we must become committed to training and to providing our employees with the opportunity to learn new skills, expand their horizons and advance in their careers, we must become committed to the one thing we seldom do: teach the employees about our guests - who they are, where they are from, and what they want.

Finally, we must create a culture where customer expectations are met and exceeded, and complaints are solicited and resolved. A few years ago, Ford Motor Company reported a 25 percent difference in repeat purchases of automobiles between customers who were satisfied and those who were dissatisfied with dealer service. The same must be true -- and more so -- in the hotel business. This customer service culture we are creating can only be achieved by granting our employees the authority to deliver guest satisfaction at the point of contact. Not from the GM's office, not from responding to a complaint letter, but at the point of contact with competent, experienced, dedicated and friendly front line employees.

Let me illustrate my point. Last month, I was at one of our airport properties checking out. An angry guest was complaining to the front desk clerk. "I am staying in this town for another three days but I want to check out of this place immediately!" he said. Whether the complaint was justified or not is irrelevant; instead of responding to the guest's dissatisfaction, the clerk asked for a room number and began the checkout process.

If, once a day in every one of our 1,000 Ramada properties, a desk clerk feels empowered to say, "Mr. Jones, I am so sorry you had such a bad experience. Your room is complimentary," or "Please give us another chance: here is a voucher for one free night on your next visit," Ramada will be a success beyond any reasonable expectation. The incremental revenue for Ramada would be millions of dollars. If we satisfy one additional guest each day at every Ramada, this company will take in $20 million a year in additional revenues. How many millions and millions of dollars will be saved in employee costs if all our line employees are trained to think and feel and react like an owner? Isn't increased revenue the goal of all of us?

Saving dollars on labor costs is being penny-wise and pound-foolish. I strongly believe the hotel companies that recognize employees as their most valuable asset are the ones that will be recognized by consumers as the undisputed industry leaders.

That's why Ramada is meeting the service challenge with "Personal Best Hospitality," the most ambitious and innovative training initiative ever undertaken in the mid-tier lodging market. Through highly sophisticated interactive technology, personal interaction, employee incentives and education opportunities we will create, at every property and at all staff levels from busboy to general manager, a motivated, dedicated staff for whom competent, sensitive and thoughtful service is second nature. We look forward to other hotel companies following in our footsteps.

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