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A2040-407 Assessment: IBM Notes and Domino 9.0 Social Edition System Administration B

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A2040-407 exam Dumps Source : Assessment: IBM Notes and Domino 9.0 Social Edition System Administration B

Test Code : A2040-407
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: 118 existent Questions

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IBM Assessment: IBM Notes and

Cloudy weather ahead for IBM and red Hat? | existent Questions and Pass4sure dumps

the world is buzzing in regards to the application trade’s biggest acquisition ever. This “video game changing” IBM acquisition of pink Hat for $34 billion eclipses Microsoft’s $26.2 billion of LinkedIn, which set the outdated list. And it’s the third biggest tech acquisition in history in the back of Dell purchasing EMC for $sixty four billion in 2015 and Avago’s buyout of Broadcom for $37 billion the identical yr.

Wall street certainly receives apprehensive when it sees these lofty rate tags. IBM’s inventory became down 4.2 % following the announcement, and there are doubtless greater concerns over a broader IBM selloff round how a mighty deal IBM is purchasing purple Hat.

This units the stage for big expectations on IBM to leverage this asset as a vital turning factor in its history. for the understanding that IBM’s Watson AI poster child has did not create sustainable increase, might this be their foremost probability to arrogate the ship as soon as and for all? Or is this mega merger an advanced clash of cultures and products with a purpose to originate it complicated to recognise the total expertise?

big Blue’s been in expansive concern

When the chips are down, it’s time to disappear outright in. huge Blue actually greatly surprised the know-how world when it introduced it might carry out its greatest deal ever and buy purple Hat for an immense 11x top class. The reality is that pink Hat changed into no longer always looking to be received, so overpaying was the handiest conceivable choice. And if IBM didn’t pay, Google, Amazon, VMWare and even Alibaba would have.

desperate times convoke for desperate measures. IBM has been struggling to demonstrate boom in modern markets for rather a while. before 2018, it had 22 straight quarters of earnings decline. And it has lost over $28 billion in revenue over the past six years. Its revenue at the conclusion if 2017 become $seventy nine.14 billion, the lowest in twenty years and the more severe annual number seeing that 1997, when IBM revenues were $78.fifty one billion, aside from inflation.

In early 2018, IBM became capable of yield three consecutive quarters of earnings growth, however that was particularly as a result of the introduction of a modern line of IBM Z mainframe computer systems.

IBM has been a company in decline for many years. It’s difficult to preserve a enterprise with shrinking sales.

Too historical to grow?

IBM is more than 100 years ancient and definitely suffers from comparisons to more youthful and nimbler groups reminiscent of Amazon, Google, facebook, and Apple which Have posted listing expand in fresh instances. Amazon’s recent earnings Have surpassed $2 billion, for example.

in case you distinction IBM to Microsoft, one more historic world application business, it’s startling to peer the disagreement in how Microsoft has been capable of reposition itself as boom industry based on the cloud.

In 1990, when Microsoft liberate home windows 3.0, IBM had revenues of $sixty nine billion (only $10 billion shy of what it has today), while Microsoft had around $800 million. Microsoft surpassed IBM in income in 2015 and crossed the $one hundred billion annual income heed in 2018.

over the past several years, as IBM’s salary shrank, Microsoft invested in its “business cloud” enterprise that encompasses Azure, workplace 365, and Dynamics 365, bringing in over $23 billion in modern revenues. Microsoft has currently been firing on outright cylinders while IBM experienced boom stalls.

slow to ensnare to the cloud

IBM’s success in the hardware company, specifically it’s Z-sequence mainframes, pressured it to protect its turf and distracted it from seeing the longer term influence of cloud. AWS begun offering public cloud capabilities again in 2006. As late as 2011, IBM became barely mentioning the keep “cloud” in its annual experiences or earnings calls. The industry at last realized in 2013 that cloud computing changed into the future and made a hail-Mary buy of SoftLayer to bridge the gap, paying $2 billion and then investing an additional $1 billion to integrate the platform.

It’s difficult to establish gigantic market share if you’re late to the party. Softlayer’s international market share continues to be a far-off fifth in the back of AWS, Microsoft, Google, and even brisker newcomer Alibaba, which handed IBM’s cloud revenues in June of 2018.

IBM made a few other cloud-connected acquisitions, together with Gravitant (a cloud brokerage and management utility), Bluebox (a personal cloud as a service platform in keeping with OpenStack), Sanovi (a hybrid cloud healing and migration utility), Lighthouse and CrossIdeas (both cloud protection structures), and CSL overseas (a cloud virtualization platform).

regardless of these acquisitions within the cloud market, IBM has did not in fact monetize these items and gain market share in the cloud.

The company has failed to capitalize on improvements earlier than: Watson AI become at the excellent of its online game when it debuted on Jeopardy in 2011 to beat human contestants however instantly fell at the back of Amazon, Google, and Microsoft.

Will crimson Hat be the savior?

pink Hat is the world’s greatest provider of open-source industry application options. red Hat’s bread and butter Linux enterprise continues to deliver growth specially because it powers many up to date AI and analytics workloads. Its model has advanced from only on-premise to a match subscription industry used on public cloud platforms equivalent to Amazon net features (AWS), Microsoft Azure, and Google Cloud Platform (GCP).

crimson Hat has furthermore multiplied into open middleware options reminiscent of OpenStack, a cloud infrastructure platform, and OpenShift, a platform for managing utility containers. OpenShift has long been a well-kept covert as Cloud autochthonous Computing foundation (CNCF) has grabbed lots of the headlines with its Kubernetes container orchestration platform. IBM has a random to leverage its marketing and world attain to embolden mainframe and legacy valued clientele to undertake OpenShift. These platforms Have been incredibly leveraged in inner most and hybrid cloud deployments, specially in industries relish telecommunications.

There isn't any doubt that pink Hat offers IBM a lots extra credible cloud story. however the question basically is, is it too late?

The acquisition is actually respectable tidings for organisations seeking to shift basic container-based purposes and digital machines to the cloud. however, Amazon has already captured a expansive a allotment of that market.

whereas the acquisition of pink Hat gives IBM a strong position within the hybrid-cloud market, which should be generic for organizations that don't seem to be taking the time to decommission or re-architect legacy functions, the speedy-growing public cloud market may be the battleground of the future.

Will the mixing ensnare messy?

IBM has had a spotty record when it comes to integrating and capitalizing on expansive acquisitions.

while the majority of IBM’s M&A has been within the region of software, income within the aspect has been disappointing. possibly what's concerning is that adjusting for acquisitions, IBM’s application industry continues to snarl no — commonly because of the indisputable fact that these colossal acquisitions Have turn into a allotment of the IBM fabric and company as average.

Can IBM combine whatever thing as expansive as pink Hat with out interfering with its core value proposition? Many concern that massive Blue will attempt to “blue wash” their platform of choice.

And there’s the question of whether these two diverse corporate cultures can attain collectively – IBM, a leisurely growth enterprise not making a mighty deal evolution in the cloud house, and pink Hat, an ingenious, open supply company that's pile foundational components for operating in the cloud.

We’ve viewed lifestyle clashes derail many different inordinate profile mergers corresponding to HP/Compaq, HP/Autonomy, Microsoft/Nokia, AOL/Time Warner, dash/Nextel and Alcatel/Lucent. IBM will should embody the open supply group and strategy.

The joint enterprise will puss crucial platform choices on the cloud entrance. IBM has a public cloud that competes with AWS and Microsoft. however builders exhaust pink Hat’s Linux on many public clouds. while that multi-cloud strategy will wait on IBM usher in income across the common public clouds, it is going to create battle with its own Softlayer cloud providing. IBM has struggled to manipulate this category of channel and product contest effectively in the past.

after which there is the future of IBM’s personal AIX working device vs. Linux — now not to mention the SCO-IBM Unix lawsuit nonetheless lingering in the courts.

additionally to note are the lesser common crimson Hat storage items relish crimson Hat Ceph (an expostulate file storage) and crimson Hat Gluster (a NAS product). As red Hat integrates into IBM’s hybrid cloud neighborhood, these storage items will be separated from IBM, which might create confusion and conflict.

So whereas IBM certainly faces a lot of random with the acquisition, there isn't any guarantee this big guess will pay off. IBM obligatory a daring move. however in the short term, they are not likely to contemplate any surprising toddle of IBM’s region in the public cloud area. outright eyes could be on its capability to catapult into the hybrid cloud market. For that, the industry will should originate sure it doesn’t ensnare in its personal means.

Frank Palermo is the government vp at Virtusa’s world Digital enterprise, where he is accountable for expertise practices in UX, mobility, social, cloud, analytics, massive facts, and IoT.

evaluating bfloat16 latitude and Precision to different sixteen-bit Numbers | existent Questions and Pass4sure dumps

Deep learning has spurred interest in novel floating component formats. Algorithms regularly carry out not want as a suited deal precision as ordinary IEEE-754 doubles or even single precision floats. reduce precision makes it feasible to dangle greater numbers in reminiscence, reducing the time spent swapping numbers in and out of memory. due to the fact that this the region a lot of time goes, low precision codecs can speed issues up quite a little.

right here I need to study bfloat16, or BF16 for short, and evaluate it to 16-bit number codecs I've written about up to now, IEEE and posit.

Bit design

The BF16 format is benign of a cross between FP16 and FP32, the 16- and 32-bit codecs defined within the IEEE 754-2008 normal, furthermore referred to as half precision and single precision.

The bfloat16 format has 16 bits relish FP16, but has the identical variety of exponent bits as FP32. every quantity has 1 sign bit. The leisure of the bits in every of the formats are allocated in the desk beneath.

|--------+------+----------+----------| | structure | Bits | Exponent | Fraction | |--------+------+----------+----------| | FP32 | 32 | eight | 23 | | FP16 | sixteen | 5 | 10 | | BF16 | sixteen | eight | 7 | |--------+------+----------+----------|

BF16 has as many bits as a FP16, however as many exponent bits as a FP32. The latter makes conversion between BF16 and FP32 convenient. Chop off the last 16 bits off a FP32 and you Have got a BF16, or pad a BF16 with zeros to originate a FP32.


The epsilon value, the smallest quantity ε such that 1 + ε > 1 in computer representation, is 2 where e is the number of exponent bits. BF16 has a mighty deal much less precision near 1 than the other formats.

|--------+------------| | layout | Epsilon | |--------+------------| | FP32 | 0.00000012 | | FP16 | 0.00390625 | | BF16 | 0.03125000 | |--------+------------| Dynamic range

The dynamic latitude of bfloat16 is corresponding to that of a IEEE single precision quantity. Relative to FP32, BF16 sacrifices precision to maintain latitude. ambit is typically decided via the number of exponent bits, even though no longer fully.

Dynamic latitude in decades is the log foundation 10 of the ratio of the largest to smallest representable tremendous numbers. The dynamic stages of the numeric codecs are given beneath. (Python code to compute dynamic ambit is given here.)

|--------+-------| | structure | DR | |--------+-------| | FP32 | 83.38 | | BF16 | 78.57 | | FP16 | 12.04 | |--------+-------| comparison to Posits

The precision and dynamic ambit of posit numbers depends upon what number of bits you earmark to the highest exponent, denoted es via conference. (notice "maximum." The number of exponent bits varies for distinctive numbers.) This publish explains the anatomy of a posit quantity.

Posit numbers can achieve greater precision and greater dynamic ambit than IEEE-like floating point numbers with the equal number of bits. Of course, there is no free lunch. Posits symbolize massive numbers with low precision and small numbers with tall precision, however this alternate-off is regularly what you'd need.

For an n-bit posit, the number of fraction bits near 1 is n - 2 - es and so epsilon is 2 to the exponent es - n - 2. The dynamic latitude is...

...which is derived birthright here. The dynamic latitude and epsilon values for 16-bit posits with es ranging from 1 to four are given in the desk under.

|----+--------+-----------| | es | DR | epsilon | |----+--------+-----------| | 1 | 16.86 | 0.0000076 | | 2 | 33.82 | 0.0000153 | | 3 | 37.43 | 0.0000305 | | 4 | 143.86 | 0.0000610 | |----+--------+-----------|

For outright of the values of es above, a sixteen-bit posit quantity has a smaller epsilon than either FP16 or BF16. The dynamic ambit of a sixteen-bit posit is higher than that of a FP16 for outright values of es, and greater than BF16 and FP32 when es = four.

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could red Hat deal be a 'distraction' for IBM? Unisys CEO hopes so | existent Questions and Pass4sure dumps

No influence found, are trying modern keyword!“but this turned into already practicable by edge of IBM features’ current partnerships with crimson Hat,” she notes. “IBM will nevertheless should compete with IT capabilities peers equivalent to Accenture, Atos and Wipro for r...

A2040-407 Assessment: IBM Notes and Domino 9.0 Social Edition System Administration B

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A2040-407 exam Dumps Source : Assessment: IBM Notes and Domino 9.0 Social Edition System Administration B

Test Code : A2040-407
Test name : Assessment: IBM Notes and Domino 9.0 Social Edition System Administration B
Vendor name : IBM
: 118 existent Questions

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Intel Vets declare Trump Iran Is Not Top Terror Sponsor | existent questions and Pass4sure dumps

A group of U.S. intelligence veterans urges President Trump to stop his administration’s unfounded claims about Iran being the leading state sponsor of terrorism when U.S. allies, such as Saudi Arabia, are clearly much guiltier.


FROM: Veteran Intelligence Professionals for Sanity

SUBJECT: Is Iran the “World’s Leading Sponsor of Terrorism?”


We are concerned by recent strident and stark public statements from key members of your Administration that paint Iran in very alarmist terms. The medium American, without the profit of history, could easily be persuaded that Iran poses an imminent threat and that there is no alternative for us but military conflict.

President Donald Trump addresses the nation about his Iran policy on Oct. 13, 2017. (Screenshot from

We find this uncomfortably chummy territory. Ten years ago former President George W. Bush was contemplating a war with Iran when, in November of 2007, intelligence analysts issued a formal National Intelligence estimate (NIE) debunking the rife conventional wisdom; namely, that Iran was on the verge of getting a nuclear weapon.  The NIE concluded that Iran had stopped working on a nuclear weapon in 2003.

Recalling this jiffy in his memoir, determination Points, President Bush notable that the NIE’s “eye-popping” intelligence findings stayed his hand.  He added this rhetorical question: “How could I possibly account for using the military to extinguish the nuclear facilities of a country the intelligence community said had no energetic nuclear weapons program?”

We believe that you are facing a similar situation today. But instead of an inaccurate claim that Iran has nuclear weapons, the modern canard to justify war with Iran is the claim that Iran remains the “world’s leading state sponsor of terrorism.” This is incorrect, as they account for below.

 * * *

One of the recurring expansive bipartisan lies being pushed on the public with the enthusiastic wait on of a largely pliant media is that Iran is the prime sponsor of terrorism in the world today.

In the recent presentation of your administration’s National Security Strategy for 2018, the point is made that:

“Iran, the world’s leading state sponsor of terrorism, has taken edge of instability to expand its influence through partners and proxies, weapon proliferation, and funding. . . . Iran continues to perpetuate the cycle of violence in the region, causing grievous harm to civilian populations.”

Those sentiments are echoed by several other countries of the Middle East. Saudi Arabia’s foreign Minister, Adel al-Jubeir, for example, declared in October 2015 that: Iran “is the biggest sponsor of terrorism in the world, and it is working on destabilizing the region.”

The Saudi foreign minister conveniently declined to mention that 15 of the 19 terrorists who hijacked planes and attacked America on 11 September 2001 were Saudis, not Iranians.  And, while Iran was an energetic promoter of terrorism two decades ago, it is no longer in the forefront of global terrorism. Ironically, that dubious distinction now goes to Iran’s accusers — first and foremost, Saudi Arabia.

The depiction of Iran as “the world’s leading state sponsor of terrorism” is not supported by the facts. While Iran is guilty of having used terrorism as a national policy tool, the Iran of 2017 is not the Iran of 1981. In the early days of the Islamic Republic, Iranian operatives routinely carried out car bombings, kidnappings and assassinations of dissidents and of American citizens. That has not been the case for many years. Despite frequent claims by U.S. officials that Iran is engaged in terrorism, they simply note that the incidents recorded annually in the U.S. Department of State’s Patterns of Global Terrorism rarely identifies a terrorist incident as an act by or on behalf of Iran.

Iran’s relationship with Hezbollah furthermore has evolved radically. In the early years of the Islamic Republic, Hezbollah was often a proxy and sub-contractor for Iran. But during the last 20 years Hezbollah has become an entity and political favor in its own right. It fought Israel to a standstill in 2006 in southern Lebanon, which was a watershed jiffy in establishing Hezbollah’s transformation into a conventional army. In the intervening years, Hezbollah, which is now allotment of the Lebanese government, furthermore has turned away from the radical, devout driven violence that is the hallmark of the Sunni extremists, relish ISIS.

Iran’s Asymmetrical Response

After Iran fell under the rule of the Ayatollah in 1979 terrorism, its role in tall profile terrorist attacks, such as the taking of U.S. hostages and the bombings of the U.S. Embassy and the Marine barracks in Lebanon, fed understandable U.S. animosity towards Iran.  But Iran’s actions were not driven primarily by blind hatred or radical devout views.  For Iran terrorism was a way to punch back against more powerful foes, principally the United States, which was providing military and intelligence support to Iran’s neighbor and enemy, Iraq.

Portrait of the late Ruhollah Khomeini by Mohammad Sayyid

The Iranians were furthermore pragmatic and had direct dealings with Israel. During the early days of the Iranian revolution the Mullahs, despite publicly denouncing Israel, happily accepted covert military support from the Israelis. Israel was equally pragmatic. The Israeli leaders ignored the Mullahs and gave the support as a means of helping counter the threat posed by Iraqi President Saddam Hussein. A classic case of the enemy of my enemy is my friend.

The public image of Iran as a hotbed of fanatical terrorists has been usurped since the August 1998 bombings of the U.S. Embassies in east Africa by Al Qaeda and other radical Sunni entities. The U.S. Government’s own list of terrorist attacks since 2001 shows a dramatic drop in the violence carried out by Iran and an accompanying surge in horrific acts by radical Sunni Muslims who are not aligned with Iran.  The latest edition of the Global Terrorism Index, a project of the U.S. Department of Homeland Security, shows that four groups accounted for 74 percent of outright fatalities from terrorism in 2015 — Boko Haram, Al-Qaeda, the Taliban and ISIS.

Thirteen of the 14 Muslim Groups identified by the U.S. intelligence community as actively hostile to the US are Sunni, not Shia, and are not supported by Iran:

– ISIS (Sunni)

– The Al-Nusra Front (Sunni)

– Al-Qa’ida Central (Sunni)

– Al-Qa’ida in Magheb (Sunni)

– Al-Qa’ida in Arabian Peninsula (Sunni)

– Boku Haram (Sunni)

– Al-Shabbab (Sunni)

– Khorassan Group (Sunni)

– Society of the Muslim Brothers (Sunni)

– Sayyaf Group in the Philippines (Sunni)

– Taliban in Pakistan and Afghanistan (Sunni)

– Lashgar i Taiba (Sunni)

– Jemaa Islamiya (Sunni)

– Houthis (Shia)

The last major terrorist bombard causing casualties that is linked to Iran was the July 2012 bombing of a bus with Israeli tourists in Bulgaria. That departure from Iran’s more recent policy on terrorism was retaliation for what Iran perceived to be Israel’s role in assassinating five Iranian scientists involved with Iran’s Nuclear program, between January 2010 and January 2012 (the dates and names of those attacked are appended).

One can easily imagine the outrage and lust for revenge that would sweep the U.S., if Americans believed a foreign country sent operatives into the United States who in turn murdered engineers and scientists working on sensitive U.S. defense projects.

Special Operations

There Have been other terrorist attacks inside Iran bearing the handprint of support from the United States. Author Sean Naylor, Relentless Strike, which details the history of operations carried out by U.S. Joint Special Operations Command (JSOC) over the past 30 years, sheds light on this uncomfortable truth:

The late Al-Qaeda leader Osama bin Laden.

“JSOC personnel furthermore worked with the Mujahideen-e-Khalq (MEK), a militant Iranian exile group that had based itself in Iraq after falling afoul of the ayatollahs’ regime in Tehran. The State Department had placed the MEK on its list of designated terrorist organizations, but that didn’t stop JSOC from taking an attitude of “the enemy of my enemy is my friend” toward the group. “They were a group of folks that could transit the border, and they were willing to wait on us out on what they wanted to carry out with Iran,” said a special operations officer.”

The MEK were classified as a terrorist group, until the United States decided that as long as the MEK would wait on Kill Iranians rather than Americans, that they were no longer terrorists. The MEK’s history of terrorism is quite clear. Among more than a dozen examples over the last four decades these four are illustrative:

  • During the 1970s, the MEK killed U.S. military personnel and U.S. civilians working on defense projects in Tehran and supported the takeover in 1979 of the U.S. Embassy in Tehran.
  • In 1981, the MEK detonated bombs in the head office of the Islamic Republic Party and the Premier’s office, killing some 70 high-ranking Iranian officials, including Iran’s President, Premier, and Chief Justice.
  • In April 1992, the MEK conducted near-simultaneous attacks on Iranian embassies and installations in 13 countries, demonstrating the group’s skill to mount large-scale operations overseas.
  • In April 1999, the MEK targeted key military officers and assassinated the deputy chief of the Iranian Armed Forces common Staff.
  • Despite this history, a bipartisan parade of prominent U.S. political and military leaders has lobbied on behalf of MEK and has been well compensated in return.

    Benighted Policy So Far

    In the ultimate ironic turn, the U.S.-led 2003 war in Iraq played a critical role in Iran’s resurgence as a regional power. Saddam Hussein was replaced by Shia muslims who had received sanctuary in Iran for many years and Baathist institutions, including the Army, were taken over by Iraqis sympathetic to Tehran.

    Iran has attain out ahead in Iraq and, with the 2015 nuclear agreement in place, Iran’s commercial and other ties Have improved with key NATO allies and the other major world players—Russia and China in particular.

    Official pronouncements on critical national security matters need to be based on facts. Hyperbole in describing Iran’s terrorist activities can be counterproductive. For this reason, they convoke attention to Ambassador Nikki Haley’s recent statement that it is difficult to find a “terrorist group in the Middle East that does not Have Iran’s fingerprints outright over it.” The truth is quite different. The majority of terrorist groups in the region are neither creatures nor puppets of Iran. ISIS, Al-Qaeda and Al-Nusra are three of the more prominent that attain to mind.

    You Have presented yourself as someone willing to speak difficult truths in the puss of establishment pressure and not to accept the status quo. You spoke out during the crusade against the 2003 U.S. invasion of Iraq as a historic mistake of epic proportions. You furthermore correctly captured the mood of many Americans fatigued from constant war in far away lands. Yet the torrent of warnings from Washington about the dangers supposedly posed by Iran and the need to confront them are being widely perceived as steps toward reversing your pledge not to ensnare embroiled in modern wars.

    We embolden you to reflect on the warning they raised with President George W. Bush almost 15 years ago, at a similar historic juncture:

    “after watching Secretary Powell today, they are convinced that you would be well served if you widened the discussion … beyond the set of those advisers clearly bent on a war for which they contemplate no compelling understanding and from which they believe the unintended consequences are likely to be catastrophic.”

    Iran’s President Hassan Rouhani celebrates the completion of an interim deal on Iran’s nuclear program on Nov. 24, 2013, by kissing the head of the daughter of an assassinated Iranian nuclear engineer. (Iranian government photo)



    January 12, 2010: Masoud Alimohammadi, Iranian Physicist:

    Killed by a car bomb.  The perpetrator reportedly confessed to having been recruited by Israeli intelligence to carry out the assassination.

    November 29, 2010: Majid Shahriari, Iranian nuclear scientist:

    Killed by a car bomb.  According to German media, Israel was the sponsor.

    November 29, 2010: Assassination attempt on Fereydoon Abbasi Iranian nuclear scientist:

    Wounded by a car bomb.

    July 23, 2011: Darioush Rezaeinejad, Iranian electrical engineer, unclear scientist

    Killed by unknown gunmen on motorcycle.  Specialist on high-voltage switches — a key component of nuclear warheads.  Assassinated by Israeli intelligence, according to the German press.

    January 11, 2012: Mostafa Ahmadi-Roshan, Iranian nuclear scientist

    Killed at Natanz uranium enrichment facility by a magnetic bomb of the identical benign used in earlier assassinations of Iranian scientists.



    Richard Beske, CIA, Operations Officer (ret.)

    William Binney, former NSA Technical Director for World Geopolitical & Military Analysis; Co-founder of NSA’s Signals Intelligence Automation Research Center

    Marshall Carter-Tripp, foreign Service Officer (ret.) and Division Director, State Department Bureau of Intelligence and Research

    Bogdan Dzakovic, Former Team Leader of Federal Air Marshals and Red Team, FAA Security, (ret.) (associate VIPS)

    Philip Giraldi, CIA, Operations Officer (ret.)

    Larry C. Johnson, former CIA and State Department Counter Terrorism officer

    Michael S. Kearns, Captain, USAF (Ret.); ex-Master SERE Instructor for Strategic Reconnaissance Operations (NSA/DIA) and Special Mission Units (JSOC)

    John Kiriakou, Former CIA Counterterrorism Officer and former senior investigator, Senate foreign Relations Committee

    Karen Kwiatkowski, former Lt. Col., US Air favor (ret.), at Office of Secretary of Defense watching the manufacture of lies on Iraq, 2001-2003

    Edward Loomis, NSA, Cryptologic Computer Scientist (ret.)

    David MacMichael, National Intelligence Council (ret.)

    Ray McGovern, former US Army infantry/intelligence officer & CIA analyst (ret.)

    Elizabeth Murray, Deputy National Intelligence Officer for Near East, CIA and National Intelligence Council (ret.)

    Torin Nelson, former Intelligence Officer/Interrogator (GG-12) HQ, Department of the Army

    Todd E. Pierce, MAJ, US Army umpire Advocate (ret.)

    Coleen Rowley, FBI Special Agent and former Minneapolis Division Legal Counsel (ret.)

    Greg Thielmann — Former director of the Strategic, Proliferation, and Military Affairs Office of the State Department’s intelligence bureau (INR) and former senior staffer on the Senate Intelligence Committee

    Kirk Wiebe — former Senior Analyst, SIGINT Automation Research Center, NSA

    Lawrence Wilkerson, Colonel (USA, ret.), Distinguished Visiting Professor, College of William and Mary (associate VIPS)

    Sarah G. Wilton, CDR, USNR, (Retired)/DIA, (Retired)

    Robert Wing — former foreign Service Officer (associate VIPS)

    Ann Wright, Col., US Army (ret.); foreign Service Officer (who resigned in opposition to the war on Iraq)





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    October 31st, 2018 in industry Practices, topple 2018, Millennial, Restaurants, Technology, Trends

    By Tyler Titherington

    I am a restaurateur.  I’m behind schedule.  Again.  Not because I am disorganized or Have too much to do, more so because I Have a hierarchy of tasks that are addressed based on priority.  Guest needs are my first priority, staff needs are a near second and everything else last.  There is a tertiary hierarchy in the last basket as well.  Some tasks with a lower priority topple through the cracks.  Not because they are unimportant, but rather there just was not enough time.  The truth is that I am obsessively organized.  I fancy “To Do” lists, calendars, rush charts and the accomplishment of tasks.  I consume projects for breakfast, while vital on the edge of chaos and complete catastrophe.  Short staffed?  Yawn.  Drains flooding?  Been there, done that.  POS system crash during service on a weekend?  Bring it.  I am the duck – collected above water and feet poignant nonstop below.  However, how carry out I manage outright the curveballs and still manage to gain time without compromising any of my other priorities?  It is very simple – adjust and embrace technology wherever possible, specifically, cloud-based computing solutions that allow one to be in many places at one time.  These applications simplify daily tasks for management teams and staff, which will ultimately leverage senior management down to focus on the bigger picture.  Maybe even ensnare a day off…

    Over the last 10 years or so, the increased availability of cloud-based computing solutions (using network computers over the internet rather than property-based difficult drives) has been a major paradigm shift for many industries.  However, as with most technological advances, the restaurant industry has been very leisurely to adapt.  Tight margins, resistance to change, and horror of unknown outcomes Have long driven the restaurateur’s decision-making process.  However, with increased options, cheaper costs, and ease of use, that mindset is quickly becoming a thing of the past.  Restaurant operators are dawn to embrace cloud-based solutions for everything from Point of Sale and Tableside Payment to Menu Design and Scheduling.

    Our foray into cloud computing began with an unfortunate set of circumstances that the entire industry was facing.  The year was 2010 and the impending doom of PCI Compliance was upon us.  At best, their network infrastructure was dated and they needed to act quickly to ensnare it into compliance.  relish most operators, their hand was forced and they had no choice.  What is PCI Compliance?  The retort depends on who you ask.

    Your guests Have never heard of it and Have no opinion what it is.  Most restaurant operators will declare you that PCI Compliance is an almost unachievable set of network security standards designed to protect the credit card giants, who already permeate them way too much for credit card processing and continually squeeze them with a plethora of monthly fees.  The definition of PCI Compliance is below, according to PCI

    “The Payment Card Industry Data Security Standard (PCI DSS) is a set of security standards designed to ensure that outright companies that accept, process, store or transmit credit card information maintain a secure environment.  The PCI Security Council Card focuses on improving payment account security throughout the transaction process. It is an independent carcass that was created by the major payment card brands (Visa, MasterCard, American Express, discover and JCB.).”[i]

    PCI DSS is mandatory for any and outright businesses that accept credit cards.  It involves a process of assessment, remediation and reporting.  Operators must identify network vulnerabilities, physical vulnerabilities, and operational vulnerabilities that could result in a credit card violation and fix them.  In summary, it is a painfully tedious, extremely time consuming, and potentially expensive process.

    It is extremely distinguished for the security of their guest’s payment information, both for ensuring trust with their customers and limiting legal liabilities.  In 2017-8, major retail stores including Home Depot, Macy’s, Sears, Kmart, Best Buy and Lord & Taylor made headlines across the country for data breaches possibly compromising customer’s credit card personal information. The restaurant industry is furthermore plagued with security breaches, including big chains such as Darden (Cheddar’s), Panera Bread, Sonic and Arby’s. The number of customers whose credit card information may be compromised totals into the millions.[ii]

    At Grafton Group, the process of obtaining Credit card security involved working directly with their IT vendor and POS vendor to achieve PCI compliance.  The first order of industry was to ensnare their network infrastructure in order.  Some of the major network upgrades that they undertook were upgrading wiring, locking down patch panels, securitizing external ports, adding wireless access points (WAPs), and replacing firewalls. The WAPs and modern firewalls were the heart of the upgrades and would ultimately allow us to operate unencumbered in the cloud.  The modern access points give their guests their own network and forestall them from accessing ours.  The security firewalls forestall intrusions and furthermore allow their IT vendor remote access so they can originate changes without actually being in the restaurant.  What used to be a scheduled visit from their IT vendor that may Have taken weeks, is now a simple email and can often be addressed online in minutes.  In a nutshell, PCI DSS forced us to upgrade their network, which ultimately allowed us to operate in the cloud.  This unintended outcome to a painful requirement was truly a blessing in dissemble and it pushed us into modern territory – the cloud!  Being in the cloud has allowed us access to exciting applications and services that would otherwise be unavailable to us.

    IBM defines cloud computing as “the delivery of on-demand computing resources — everything from applications to data centers — over the internet on a pay-for-use basis.”[iii]  For their purposes, these on require computing resources primarily consist of “SaaS” or Software as a Service.  Here are some of the areas where cloud computing can streamline their operation.

    Point of Sale

    POS systems are the most incandescent region of cloud-based solutions for restaurant operators.  Legacy systems such as Positouch, Micros, and Aloha are bulkier, more expensive, and much harder to program and implement.  There are quite a few cloud-based POS options, most notably Boston-based Toast.  Toast has done a mighty job streamlining and simplifying the interface for both front and back halt users.  Management can access the system remotely for screen programming, troubleshooting or reviewing sales.  It is extremely intuitive, relish using a smartphone, thus needing very dinky training. As wireless POS solutions evolve, legacy systems will eventually be phased out.  It is only a matter of time.

    Tableside Payment

    EMV (Europay, MasterCard and Visa) is another set of regulations that are coming to the restaurant industry. “EMV is a global standard for cards equipped with computer chips and the technology used to authenticate chip-card transactions.”[iv]  Used in Europe for years, the credit card never leaves the customer and outright transactions are processed tableside with a handheld device. One example of an EMV compliant, cloud-based device for tableside payments that they at Grafton Group are currently analyzing and map on implementing is Pay My Tab.  Pay My Tab will fully integrate with their POS system and eliminates many bulky PCI DSS requirements. Many similar systems are already in exhaust at quick service operations, where guests and staff Have easily adapted to them.  In addition to tougher security, the implementation should abate payment time, eliminate paper receipts (emailed instead) and simplify the process for management to search for specific receipts.

    Reservations and Floor Management

    There are a variety of solutions for reservations and floor management systems.  Their solid has been using OpenTable for over 15 years, so when they rolled out their cloud-based system, GuestCenter, they were early adopters.  This has been one of the single best applications in terms of roll out, ease of use, and seamless integration.  It is iPad-based and eliminates outright the wiring and host stand existent estate.  It is compatible to smart phones that allows for remote access, allowing management to check rush of service, identify unique reservations, and originate sure that waitlists are being managed appropriately.  Soon to attain is an interface with POS systems that automatically applies any “guest notes” from GuestCenter to the server’s check, such as special occasions, etc. Most importantly, due to its intuitive design, their millennial hosts exhaust the system seamlessly.

    Private Event Management

    Private events are the foundation of most complete service restaurant operations.  They are the disagreement between a suited week and a mighty week.  However, it can be a very confusing process with outright of the poignant parts.  In order to stay organized, they exhaust TripleSeat to manage leads, create BEOs and track their events calendar. The cloud-based event management system allows their Private Event Coordinators to respond at any given time from anywhere, giving them a leg up on the competition, giving them the occasion to deserve fees for each event.  Since their coordinators receive an administrative fee for each event, they Enjoy responding when available off-site; suited communication is key for making sure work-life equilibrium is maintained.

    Bar at the Russell House Tavern in Cambridge, MA. Photo: Inventory

    An region which the cloud has really saved their restaurants time is with food & beverage inventories.  No more paper and no more transposing paper to spreadsheet.  Inventories can be uploaded in existent time using a tablet, laptop or even a smart phone. BevSpot is used for both their food and beverage inventories.  They Have furthermore given access to their accounting firm, in order to reduce bulky invoice scans and uploads.  outright information can be entered into the cloud and accessed by outright of their approved users.  It furthermore allows for multiple people to retract inventory simultaneously.  One person can be on the bar, another in the walk in fridge, and another in the liquor room, outright at the identical time.  In addition to being a major time saver, it has helped Grafton Group to reduce sitting inventory by a significant amount across outright properties.


    Staff scheduling is a weekly administrative headache for managers, but there are cloud-based scheduling applications that lessen the pain. They Have establish HotSchedules to meet their needs as it interfaces with their POS system and allows their solid to carry out some creative reporting in regards to budgeting and forecasting, as well as taking employees requests and requirements into consideration.

    Email and File Sharing

    Grafton Group has attain a long way from sharing access to a desktop version of Outlook and toggling between accounts.  They were able to eliminate their main server entirely and now they exhaust Office 365 for their email and file sharing needs.  Not only is this highly securitized, it has redundancy so their information is always backed up.  They access both their email and files from anywhere in the world.  This has greatly improved productivity and allowed their management teams to communicate in existent time.

    Grafton Street in Cambridge, MA. Photo: Computer Hardware

    Our office hardware now consists of much less expensive “Network Computers”, which carry out not require expanded reminiscence for giant programs, CD drives for downloading drivers, or expansion slots for extraneous drives.  They can purchase more computers at a reduced cost and their managers no longer Have to share computer access in the office.

    Menu Design

    For their menu design need, they Have establish InDesign to be the most efficient program, which is allotment of the Adobe Creative Cloud.  This program can now be selected a la carte from Adobe’s menu of programs and paid for on a month to month basis for under $20.  This is much more palatable than paying $600 for the entire Adobe suite.

    These are just a handful examples of how cloud computing has impacted their operations and ultimately saved time for their management team and staff.  Ten seconds here, 5 minutes there, an hour tomorrow – it adds up to impactful chunks of time that can be better spent elsewhere.  They Have only scratched the surface as an industry – they will contemplate more and more options for cloud-based solutions to existent world restaurant problems. Although the solutions highlighted above create efficiency and redeem time, they carry out not serve guests and they don’t understand the technique of hospitality.  It is imperative that as restaurateurs they continue to create a positive environment, embrace innovation, and engage and train their employees in the technique and skill of hospitality.

    There are some things you will never Have time for in the restaurant industry, regardless of cloud-based advancements.  “Lunch”, for example, I Have heard is a meal that takes region in the middle of the day.  For me, “lunch” is the sandwich that I consume in 30 seconds somewhere between 2pm and 6pm standing over a trash can in the back of the kitchen.  There is no technology for that…

    PDF Version Available Here

    References [i] “PCI Compliance usher FAQ.” PCIComplianceGuide.Org. September, 2018. [ii] Green, D. and Hanbury, M. (Aug. 22, 2018). “If you shopped at these 16 stores in the last year, your data might Have been stolen.” [iii] “What Is Cloud Computing?” September, 2018. [iv] Kossman, Sienna. ” 8 FAQs about EMV credit cards.” August 29, 2017. Tyler was born and raised in Portland, Maine and has lived in the Boston region since attending Boston University.  After graduating from the Boston University School of Hospitality Administration, Mr. Titherington operated a handful of bars and restaurants in Boston.  He has been with Grafton Group since October 2007. 

    October 31st, 2018 in industry Practices, topple 2018, Hotels, Marketing, Sharing Economy, Technology, Trends

    By Makarand Mody and Monica Gomez

    For a long time, the hotel industry did not account Airbnb a threat. Both the industry and Airbnb claimed they were serving different markets and had different underlying industry models. Over the years, as Airbnb become more successful and grown to being larger than the companies in the hotel industry, the rhetoric has changed. The hotel industry began to realize they had something to worry about.

    A stage of denial was followed by the American Hotel & Lodging Association (AH&LA) attacking Airbnb by sponsoring research to demonstrate its negative impacts on the economy and lobbying governments to impose taxes and regulations on homesharing. The association is arguing for a even playing domain between homesharing and hotels (and rightly so). The next stage of this battle involves competition and integration. Not only are hotels looking to add homesharing-like attributes and experiences to their properties, to more effectively compete with Airbnb, but are furthermore looking to tap into the platform-based industry model that underlies Airbnb’s success.

    The Past: How does Airbnb impact the hotel industry?

    Airbnb’s disruption of the hotel industry is significant, both existentially and economically. A recent study by Dogru, Mody, and Suess (2018) establish that a 1% growth in Airbnb supply across 10 key hotel markets in the U.S. between 2008 and 2017 caused hotel RevPAR to decease 0.02% across outright segments. While these numbers may not appear substantial at first, given that Airbnb supply grew by over 100% year-on-year over this ten year term means that the “real” abate in RevPAR was 2%, across hotel segments. Surprisingly, it was not just the economy but furthermore the frill hotel segment that was difficult hit by Airbnb supply increases, experiencing a 4% existent decline in RevPAR. The impact of Airbnb on ADR and occupancy was less severe. In Boston, RevPAR has decreased 2.5%, on average, over the last ten years due to Airbnb supply increases. In 2016 alone, this 2.5% abate in RevPAR amounted to $5.8 million in revenue lost by hotels to Airbnb. Brands that felt the impact the most were those in the midscale and frill segments, with a abate in RevPAR of 4.3% and 2.3% respectively. These supply increases are furthermore fueling Airbnb taking an increasing share of the accommodation market pie. For example, in modern York City, Airbnb comprised 9.7% of accommodation demand, equaling approximately 8,000 rooms per night in Q1 2016 (Lane & Woodworth, 2016). As a whole, Airbnb’s accommodated require made up nearly 3% of outright traditional hotel require in Q12016.

    Buoyed by a growth rate of over 100% year on year, Airbnb now has over 4 million listings, with the U.S. being its largest market. The company furthermore has significant play to grow in other countries, particularly emerging markets in Africa and India. The company has race into some competition in China, with local rivals Tujia and Xiaozhu. Also, within the U.S., the suited tidings is that Airbnb will not grow at 100% indefinitely and will eventually plateau as it reaches a saturation point (Ting, 2017a). In view of this, the company has turned to alternative strategies to continue to expand supply. It is now targeting property developers to turn entire buildings into potential Airbnb units, through its newest hotel-like brand, Niido. Currently, there are two Airbnb branded Niido buildings in Nashville, TN and Orlando, FL with over 300 units each and Airbnb plans to Have as many as 14 home-sharing properties by 2020 (Zaleski, 2018). Niido works by encouraging tenants to list their units on Airbnb, with Airbnb and Niido taking 25% of the revenue generated.  Airbnb has furthermore clearly evolved from its original premise of “targeting a different market” to attracting segments traditionally targeted by hotels, such as the leisure family market, industry travelers, and the upscale traveler, as evidenced through its latest offering, Airbnb Plus. These homes Have been verified for quality, comfort, design, maintenance, and the amenities they offer. They furthermore Have simple check in, premium internet access, and fully equipped kitchens. Their hosts are typically rated 4.8+, and disappear above and beyond for their guests. Through Airbnb Experiences, travelers can partake in everything from the mighty outdoors—hiking and surfing—to “hidden” concerts and food and wine tours.  In addition to these products, Airbnb has furthermore “created” its own segments of travelers: novelty and sustain seekers who are looking for unique and unconventional accommodation relish yurts, treehouses, and boats, outright things that a traditional hotel company cannot provide.

    The Present: Understanding what consumers want lies at the heart of the battle between hotels and Airbnb

    There are larger societal trends that are impacting what consumers seek travel, and they umpire this has implications for the Airbnb and hotel dynamic. These trends include:

  • A shift to a “new luxury”—seeking out unique, undoubted experiences that serve as a launchpad for self-actualization—fueled by an increased wealth gap in the United States.
  • An increased mobility, particularly among previously under-represented groups in the United States (the black travel movement, for example) and the global traveler (more Indian and Chinese international travelers than ever before).
  • The changing nature of brand loyalty: from long-term relationships to consumers’ needs for instant gratification and personalization.
  • Changing nature of “ownership”: In a post-consumerist society, the stress on “access-based consumption” has attach a spotlight on wellness and well-being, beyond materialism.
  • A co-everything world where work, play, and life blend into one seamless mosaic: Technology has changed the way they live their lives, and how they are connected to work, to each other and to the things that drive us. An upcoming 5G world and the IOT is only likely to accelerate the pace of change. retract LiveZoku (, for example: is it a residence? A hotel? A WeWork? A space for the local community? A thriving food and beverage destination? It’s outright of these things.
  • What carry out these trends mean? They require marketers and sustain designers to re-think what the travel sustain means to the customer. The notion of the sustain economy was created by Pine and Gilmore in 1998, and included four dimensions: escapism, education, entertainment, and esthetic. Leveraging one, or ideally, more of these dimensions creates memorable experiences for customers, which in turn results in brand loyalty. This dynamic has been fairly well-established in the academic literature. However, Airbnb has changed the game for the sustain economy by emphasizing the sharing lifestyle and a sense of community, cleverly incorporating the above highlighted trends into its communications with customers. Because of Airbnb popularity and success, six modern dimensions Have been incorporated into the sustain economy, in the context of the travel experience: personalization, communitas, localness, hospitableness, serendipity, and ethical consumerism, as was presented by Mody in 2016.

    Interestingly, in a recent study by Mody and colleagues (Mody, Suess, & Lehto, 2017), the researchers establish that Airbnb outperformed hotels on outright the dimensions of this new, expanded, accommodation experiencescape. Airbnb outperforms hotels in the personalization dimension because of its wide array of homes and locations, enabling genuine micro-segmentation and the “perfect match” between guest and host (Dolnicar, 2018). Moreover, no one home is similar to another, giving customers a unique sustain every time, enhancing the serendipity associated with an Airbnb stay. Airbnb elevates the sense of community that consumers seek, particularly when sharing space with other travelers and/or with the host, and allows consumers unparalleled access to “the local”—that café or cute dinky store that only locals know about. However, there are areas where hotels hold their own. For example, the pathways between these dimensions and memorability were just as strong for hotels as for Airbnb, emphasizing the need for hotels to engage customers by leveraging the “right” dimensions for the brand—dimensions that align with the brand’s mission, story, and personality.

    One such dimension where hotels perform just as well as Airbnb is hospitableness, as confirmed in a study by Mody, Suess, and Lehto (2018). More “investor units” on the Airbnb platform means that the host is often not present when guests arrive to the home; moreover, outright communication is done electronically and with someone who “manages” the Airbnb unit and doesn’t necessarily own or live in it. In turn, hotels that leverage the human factor—the welcome of a friendly check-in agent, the helpfulness of the concierge,  the warm greeting and genuine interaction between guest and food and beverage staff—create more positive emotions, which subsequently lead to higher brand loyalty. It is imperative that hotel brands really umpire about the high-tech, tall touch sustain they are looking to provide, particularly in the golden age of brand proliferation that they live in.

    From a non-experience standpoint, regulation is another bone of contention that merits near inspection. After years of denying that Airbnb was a competitor, in 2016, the American Hotel & Lodging Association first began an extensive lobbying pains for the imposition of taxes and regulations on Airbnb that even the playing field. Over the last couple of years, the voices of the hotel lobby and other community groups Have translated into governments taking some action, in the U.S. and abroad. However, in a study of regulation across 12 European and American cities, Nieuwland and van Melik (2018) establish that governments Have been fairly lenient towards short-term rentals with dinky to no (meaningful) regulations thus far. Moreover, regulations Have been designed to alleviate the negative externalities of Airbnb on neighborhoods and communities rather than to even the playing domain between Airbnb and hotels. Another challenge with regulating the peer to peer economy has been enforcement. In modern York City, under the Multiple Dwelling law, it is illegal for a unit to be rented out for less than 30 days unless the owner is present in the unit at the time the guest is renting. However, it is still practicable to find “entire homes” on Airbnb in modern York City, even though, in principle, these typically include homes where the host is not present during the guest’s stay. Moreover, Nieuwland and van Melik (2018) and Hajibaba and Dolnicar (2017) Have establish that regulations tend to be very similar across cities, without accounting for the specificities of a particular location, which makes the process perfunctory and superficial. There furthermore remains the danger of over-regulating Airbnb, given that there is still very dinky learning about effectual ways of regulating these innovations in the sharing economy, thus stifling their potential. Avoid over-regulation is critical, since Airbnb has significant welfare effects in the economy. In addition to stimulating travel to previously inaccessible markets, Airbnb furthermore creates customer surplus (Farronato & Fradkin, 2018), an distinguished economic value measure. Moreover, other research has suggested that the medium resident is not as negative towards the Airbnb as media rhetoric might suggest (Mody, Suess, & Dogru, 2018). The need for a data-driven approach to Airbnb regulation remains paramount.

    The Future: Competing with the sharing economy requires re-thinking the brand and the experience

    While regulation is outside the control of the hotel industry, the brand and the customer sustain are not. They contend that these are the areas where hotel companies’ efforts need to be focused. Hotels need to re-think the brand promise, both for the parent brand as well as individual brands in the portfolio, and how it defines and shapes the guest experience. Recent research by Mody and Hanks (2018) indicates that while Airbnb leverages the authenticity of the travel experience—by enabling local experiences that provide a sense of self and sense of place, hotel brands that are perceived as being authentic—original, genuine, and sincere—can generate higher brand loyalty. Thus, while it’s difficult to compete with homesharing in terms of experiential authenticity, brand authenticity is a pillar on which hotels can build a strong foundation for loyal brand relationships. This is particularly distinguished because while Airbnb promotes experiential authenticity as a key understanding to exhaust the brand, most travelers tend to stay with the brand for much more functional requirements, such as space and expense (Chen & Xie, 2017; Dogru & Pekin, 2017)

    There is no one definition for or manifestation of an “authentic” brand. It’s a perception, a zeal that consumers Have about what you stand for. An undoubted brand has at its core the brand promise, an undoubted value proposition that gives consumers a raison d’etre for associating with the brand. However, what an undoubted brand does require is effectual storytelling. A brand is perceived to be authentic, if it has an undoubted memoir that feeds it. Brand stories can attain from many sources: a brand’s values, personality, heritage, uniqueness, or its quest and purpose. What is distinguished is telling compelling and coherent stories across the brand’s various touchpoints to engage consumers at a visceral, emotional level. Taking off industry blinders, and looking for inspiration outside the hotel industry, is critical. Tom’s Shoes is an excellent example of leveraging its quest—One for One—in creating a compelling brand story. As another example, in an industry typically focused on the in-store, “physical” experience, Burberry has set the gold standard for authentic, digitally-led and emotive storytelling, by looking within and leveraging over 150 years of history (Watch the YouTube Video here). In this vein, they umpire that Fairfield Inn and Suites’ recrudesce to “where it outright began”—the Marriott family’s Fairfield Farm in the Blue Ridge Mountains of Virginia— to craft the brand sustain of the future, from a design and communications standpoint, is an excellent example of leveraging authenticity and crafting a compelling brand pledge (Ting, 2017b).

    Another opinion that lies at the heat of the brand pledge is what they convoke the experiential value proposition, or EVP. For the longest time, hotel marketers Have relied on the guest play as the primary source of value for the guest. But umpire about the last time you traveled. Was it the prospect of the hotel play that got you excited about your trip? Or was it everything that the hotel enables you to carry out – the sustain outside the guestroom? From experiencing technique and music in the lobby to its proximity to the must-do craft beer garden, hotel marketers must realize that it’s the complete package—what’s inside and outside the room—that customers exhaust as cues for making  their determination to select an accommodation. They convoke this proposition offered by the hotel—what’s inside and outside the guest room, enclosed within an sustain of hospitableness and a connection to humanity—its EVP. They present the EVP in motif 1.  The EVP mirrors the value paradigm of the modern traveler, something that must be reflected in the hotel brand’s sales, marketing and pricing and revenue management efforts. Thinking about a brand through the lens of the EVP paradigm has the power to re-orient the customer’s mindset from one of price-shopping to experience-shopping.

     Figure 1. The Experiential Value Proposition Framework

    How does a hotel marketer apply the EVP paradigm? Its application can open up many avenues. Hotels can start by rethinking the design of their primary digital channels, led by the website by adding more rich, vivid content that goes beyond the guestroom, in order to better integrate aspects of the wider hotel and local experience. The Standard Hotels serves as an excellent example ( Its website feels more relish a local lifestyle and culture magazine than a digital media property “selling” a hotel room. The website’s wealthy images and stories draw the visitor into wanting to learn more about what the brand has to offer. While not every hotel can or would want to disappear the Standard way, since the brand has its own distinct voice and personality, there is a case to be made for going beyond static images of beds in guestrooms, which tend to blend into one indistinguishable whole after a point, particularly on OTA websites. When was the last time the image of a hotel bed excited you to want to stay there? Yet, when you Look at the imagery attach out by most hotels, this is what marketers still focus on.

    Placing an stress on humanity and providing a sense of hospitableness can furthermore enhance a brand’s EVP. Instead of technology replacing the human connection, the industry needs to Look for ways in which technology can actually free up employees so that they can spend their time crafting more personal and unique experiences, delighting guests instead of performing routine transactions. Moreover, if the human connection is what people seek out when traveling with Airbnb, why is it that hotel confirmation emails still ensnare sent out by automated systems that highlight the “facelessness” of the hotel entity. Why not exhaust that as an occasion to truly welcome the guest; a simple touch such as a welcome letter from the GM with his/her photo, or that of an employee who is “assigned” as “your personal host” during your stay can disappear a long way in emulating the human connection that the sharing economy enables.

    The design of the hotel’s public spaces can be used to enhance the guest’s sustain of “communitas”. Ian Schrager would accord (Schaal, 2017). After all, with much of Airbnb’s supply being dominated by investor units that provide dinky or no host contact, what better an occasion for hotel brands to expose that they are the original connectors of human beings? Sheraton has been wise in incorporating some of these communal elements into its brand makeover by introducing productivity tables and studio spaces and a day-time coffee bar that transforms into a bar at night. In terms of another design element, Airbnb’s attractiveness to family and group travelers can be offset by offering connecting and/or multiple rooms for one price, with other sustain value-adds thrown in (as with the Marriott family play connecting rooms package.

    Finally, the role of the loyalty program cannot be emphasized enough. Loyalty programs must toddle beyond programmatic levels to being able to leverage data from guest history, social media, and other marketing data sources, powered by predictive analytics, to personalize and individualize the guest sustain of the brand. In an age of instant gratification, the loyalty program has to be gamified to unlock value-adds and present creative bundling.

    At the even of the hotel company, beyond the individual brand, the hotel industry has started participating in the home sharing industry and is increasingly looking to integrate these platform industry models. For example, while Accor purchased Onefinestay, Marriott has teamed up with Hostmaker to create Tribute Portfolio Homes, a partnership that was recently expanded to four European cities (Fox, 2018). From an organic brand evolution standpoint, Accor’s newest Jo & Joe brand mimics the sharing economy within the confines of a traditional hotel space. Other, more innovative and bold ways of integrating the sharing economy ethos into a hotel could include offering an “Airbnb floor”, an antithesis to the club floor, one that would not present housekeeping and other hotel services and thus be offered at a lower price. With hotel brands becoming “branded marketplaces” for accommodation and not just hotel rooms, perhaps there is merit in listing hotel rooms on alternative accommodation platforms. HomeAway is already adding hotels to its platform through the Expedia Affiliate Network, while Airbnb is making a push for bed-and-breakfasts and boutique hotels. Homesharing providers hope that by adding these options to their listings, they will fulfill their goal of being “for everyone”, while allowing independent and boutique hotels to harvest the benefits of branded distribution at a lower cost than traditional OTA brands.

    In sum, hotels must adopt a sales, marketing, and revenue management approach that is both strategic and tactical.

    At a strategic level, hotel brands need to re-think their story, and how they portray and fulfill their authenticity and brand promises. At a tactical level, it’s the sustain and value beyond the guestroom that must be factored into what is presented to current and potential guests, what they are charged for it, and how it is leverage to create “memorable memories” that lead to higher net promotor scores and brand loyalty. They present a graphical summary of the past, present, and future of Airbnb vs. hotels in motif 2.

    Figure 2. Summarizing the past, present and future of Airbnb vs. hotels

    PDF Version Available Here

    References Chen, Y., & Xie, K. (2017). Consumer valuation of Airbnb listings: a hedonic pricing approach. International Journal of coincident Hospitality Management, 29(9), 2405–2424. Dogru, T., Mody, M., & Suess, C. (2018). Adding evidence to the debate: Quantifying Airbnb’s disruptive impact on ten key hotel markets. Dogru, T., & Pekin, O. (2017). What carry out guests value most in Airbnb accommodations? An application of the hedonic pricing approach. Boston Hospitality Review. Dolnicar, S. (2018). Unique Features of Peer-to-Peer Accommodation Networks. In S. Dolnicar (Ed.), Peer-to-Peer Accommodation Networks: Pushing the boundaries (pp. 1–14). Oxford: Goodfellow Publishers Ltd. Farronato, C., & Fradkin, A. (2018). The Welfare Effects of Peer Entry in the Accommodation Market: The Case of Airbnb. Fox, J. (2018). Marriott expands homesharing program in Europe. Hotel Management. Retrieved from Hajibaba, H., & Dolnicar, S. (2017). Regulatory Reactions Around the World. In S. Dolnicar (Ed.), Peer-to-Peer Accommodation Networks: Pushing the boundaries (pp. 120–136). Oxford: Goodfellow Publishers Ltd. Lane, J., & Woodworth, M. (2016). The Sharing Economy Checks In: An Analysis of Airbnb in the United States. Retrieved from Mody, M. A., Suess, C., & Lehto, X. (2017). The accommodation experiencescape: a comparative assessment of hotels and Airbnb. International Journal of coincident Hospitality Management, 29(9), 2377–2404. Mody, M., & Hanks, L. (2018). Parallel pathways to brand loyalty: Mapping the consequences of undoubted consumption experiences for hotels and Airbnb. Mody, M., Suess, C., & Dogru, T. (2018). Not in my backyard? Is the anti-Airbnb discourse truly warranted? Annals of Tourism Research. Mody, M., Suess, C., & Lehto, X. (2018). Going back to its roots : Can hospitableness provide hotels competitive edge over the sharing economy ? International Journal of Hospitality Management. Nieuwland, S., & van Melik, R. (2018). Regulating Airbnb: how cities deal with perceived negative externalities of short-term rentals. Current Issues in Tourism, 0(0), 1–15. Schaal, D. (2017). Ian Schrager Calls Out Hotel Industry’s Airbnb Strategy as Misguided. Skift. Retrieved from Ting, D. (2017a). Airbnb Growth memoir Has a Plot Twist — A Saturation Point. Skift. Retrieved from Ting, D. (2017b). Marriott and altenative retract Varied Approaches to Reviving Classic Midscale Brands. Skift. Zaleski, O. (2018). Airbnb and Niido to Open as Many as 14 Home-Sharing Apartment Complexes by 2020. Retrieved from Makarand Mody, Ph.D. has a varied industry background. He has worked with Hyatt Hotels Corporation in Mumbai as a Trainer and as a character Analyst with India’s erstwhile premier airline, Kingfisher Airlines. His most recent experience has been in the market research industry, where he worked as a qualitative research specialist with India’s leading provider of market research and insights, IMRB International. Makarand’s research is based on different aspects of marketing and consumer behavior within the hospitality and tourism industries. He is published in leading journals in the field, including the International Journal of coincident Hospitality Management, Tourism Management Perspectives, Tourism Analysis and the International Journal of Tourism Anthropology. His work involves the extensive exhaust of inter and cross-disciplinary perspectives to understand hospitality and tourism phenomena. Makarand furthermore serves as reviewer for several leading journals in the field. In topple 2015, he joined the faculty at the Boston University School of Hospitality Administration (SHA). He received his Ph.D. in Hospitality Management from Purdue University, and furthermore holds a Master’s degree from the University of Strathclyde in Scotland. Monica Gomez is a graduate student in the School of Hospitality Administration at Boston University. She received her Bachelor’s degree in Tourism, Recreation, and Sport Management from the University of Florida and has held previous internship positions in hotel operations and event management. She is a member of the Hospitality Sales and Marketing International Association and is interested in hotel revenue management.

    February 13th, 2018 in Technology, Winter 2018

    By Tarik Dogru, Makarand Mody, & Christie Leonardi

    “A world with dinky or no intermediaries where there is no need to build trust between people and transactions are completed in seconds. This is the pledge of the Blockchain Technology.” -Tarik Dogru

    Blockchain technology and its economic, social, and technological implications, mainly in the configuration of the cryptocurrency Bitcoin, Have become sweltering topics of conversation. Indeed, blockchain technology is primarily associated with Bitcoin because it is built on a blockchain platform. However, blockchain technology goes far beyond the cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Ripple, etc. So the question becomes: what exactly is blockchain technology? In this article, they attempt to retort this question, account for how blockchain works, and discuss the common and hospitality industry-specific implications of the technology.

    What is Blockchain?

    Blockchain technology is an online platform that chronologically records transactions and tracks assets through distributed ledgers (i.e., shared ledger) in a network (Anderson, 2016; Peters & Panayi, 2016). Transactions in a network may include but are not limited to sending and receiving money, payments for products and services, booking a hotel play or a flight, making a reservation, entering into a contractual agreement, and much more. Furthermore, blockchain technology enables tracking the ownership of assets along with right-to-use in the events of assets being leased to a third party. Simply put, anything of value can be recorded, tracked, leased, and exchanged on a blockchain platform and duplicate records of these transactions are simultaneously shared with participating agents in a network. The records are further protected with mathematically configured or cryptographic keys to ensure their security.

    One concern eliminated by the technology is the need to Have trusting individuals on each side of a transaction. A central authority is not required to administer or validate transactions in blockchain platforms (Yli-Huumo et al. 2016). Instead, the technology is decentralized and transactions are executed and authorized by the members in a blockchain platform via cryptographic signatures and duplicate copies of the transactions are distributed to network members (Crosby et al. 2016). Let’s retract a more particular Look at how the technology works.

    Blockchain technology: How it works

    Blockchains are digital databases and require a network of computers to duty (Gupta, 2017; Wright & De Filippi, 2015). In a blockchain, transactions are coded into blocks, which are connected to each other in the configuration of chains, hence the name block-chain (Crosby et al. 2016; Gupta, 2017; Huckle et al. 2016); Blocks store records of transactions chronologically with timestamps and a unique reference number (i.e., hash) to previous blocks (Gupta, 2017). While the governing rules of different blockchain networks may vary, outright of its members must accord that the transactions are indeed legitimate (Davidson, De Filippi, & Potts, 2016; Pilkington, 2015). Once the blocks are created and chained, the records of transactions cannot be altered or removed from the blockchain, and the sequence of blocks cannot be changed. This provides immutable, tamper-proof data storage and management systems (Gupta, 2017).

    While most of the known blockchains, which are associated with cryptocurrencies, are open source and accessible by anyone with a computer and internet connection, blockchains carry out not Have to be public. For example, the Bitcoin blockchain is public, and transactional records are open to public while keeping the participants making the transactions anonymous (Crosby et al. 2016). However, a industry blockchain can be private and not require any cryptocurrency, as Bitcoin, Ethereum, and Litecoin do, and may require leave to participate in the network and access the distributed ledger (Gupta, 2017). The degree of leave can furthermore vary among participants depending on their role in the network. While the technicality of blockchain technology is complicated, it is distinguished to silhouette its essential features.

    Feature 1: Shared Ledger

    Records of transactions or ownership status of assets are concurrently available to outright the members in a blockchain platform, providing a single source of truth in a blockchain platform. A private blockchain will require leave (i.e., personal key) to access and obtain the records and details of the transaction. Additionally, the degree to which the participants could access these records can be limited (Crosby et al. 2016; Gupta, 2017). Some participants may only be authorized to contemplate whether a transaction occurred between two parties, while inescapable participants can be given leave to view transactions in complete detail.

    Feature 2: Security

    Transactions in a blockchain platform are verified through a consensus that are predetermined by the participating members in the blockchain (Pilkington, 2015). Internally, the records of transactions cannot be changed or manipulated by network members in a blockchain. Externally, a blockcahin platform is extremely difficult if not impossible to hack because blockchains are stored in many computers and the transactions are encrypted by unique cryptographic signatures (Crosby et al. 2016). The blockchain platform could only be hacked if outright the computers within the network are accessed at the identical time.

    Feature 3: Efficiency

    In a blockchain platform, individuals carry out not need intermediaries to establish trust because transactions are processed and verified within the blockchain network (Anderson, 2016; Gupta, 2017; Wright & De Filippi, 2015). In fact, the Economist defines blockchain as the “trust machine” suggesting that it eliminates the need for trust between people (Economist, 2015). In other words, the involvement of third-party arbitrators, such as banks and governments, to verify or accredit transactions is not needed in a blockchain platform. The elimination of intermediaries from the process streamlines the process and significantly reduces transaction time and costs.

    Feature 4: Smart Contracts

    A “smart” shrink is a shrink that can self-execute and self-enforce a set of rules or provisions in a shrink (Davidson, De Filippi, & Potts, 2016). outright the provisions that require action can be executed autonomously, either immediately or at a specific time. Smart contracts may include a few or many contractual clauses and may or may not require human involvement, sense they can be partially or fully self-executing (Gupta, 2017). The transactions will be broadcasted to outright parties involved and these records are immutable. Lease contracts, for example, can be prepared on a blockchain platform as smart lease contracts that include outright the provisions that ordinary lease contracts include, such as a leasing period, lease amount, payment date, lessor’s and lessee’s information, and other governing rules. Enforcing the governing rules and payments for the leased property (i.e., house, car, bike, etc.) can be an excruciating process in an ordinary contract, since the lessor has limited information and skill to enforce the shrink and thus requires third party involvement. In a blockchain platform, the lessee’s bank account can be linked to the lease agreement and payments can be completed automatically on the payment date. Similarly, an agreement between a travel booking site and hotels or airlines can be executed autonomously and immediately once the event occurs. In summary, smart contracts eliminate the costs and delays associated with ordinary contracts (Crosby et al. 2016; Peters & Panayi, 2016).

    What are the implications of blockchain technology?

    Blockchain technology has the potential to revolutionize many aspects of technology, business, and governance. The trust-free, tamper-evident, and cryptographic security structure of blockchain technology enables digitizing fiat currencies, creating smart contracts, developing decentralized autonomous organizations, and many more applications. Governments, corporations, and other organizations Have already started to develop blockchain platforms to test and potentially integrate the technology into mainstream use.

    One of the prominent implications of blockchain technology is observed in banking and finance, as it has the potential to originate pecuniary transactions much more secure, cost-effective, and time-efficient (Peters & Panayi, 2016). Governments could pursue the possibility of digitalizing fiat currencies to facilitate faster and secure transactions with dinky or no need for intermediaries, which potentially eliminates or reduces transaction costs. In fact, the French government has launched a working group to research the implications, benefits, and applications of blockchain for the public sector (Sundararajan, 2017). Furthermore, the French government announced that it will allow banks and fintech companies to establish blockchain platforms for unlisted securities trading, citing that it will “develop modern ways of trading securities that are faster, cheaper, more transparent and safer” (Sundararajan, 2017).


    Another distinguished implication of the blockchain technology will be observed in accounting. The current accounting system depends on the double-entry bookkeeping to provide internal control and heavily relies on both internal and external audits to build trust between stakeholders (i.e., suppliers, pecuniary institutions, and governments). Blockchain technology has the potential to further the accounting system to the next level. In a blockchain platform, transactions are automatically executed, verified, and recorded in existent time on a cryptographically-secure distributed ledger, which is accessible to outright members in the blockchain network. That is, the digitalization of the accounting system via blockchain technology will eliminate the need to sustain separate records of transactions across transacting businesses and cross-checking that often requires the exhaust of external auditors (Anderson, 2016). In addition to cost-savings and increased efficiency, blockchain technology prevents frauds and manipulations in recordkeeping due to its tamper-evident infrastructure. While blockchain technology could modernize the current accounting system, it could not completely supersede the duty of accounting departments and eliminate the need for auditing. Professional accountants are still necessary for auditing, internal control mechanisms, and accounting system improvements.

    The implications of blockchain technology goes beyond accounting and finance services. One-third of 3,000 executives surveyed by IBM reported that they are either considering integrating or Have already incorporated the blockchain technology into their businesses (Wesley, 2017). The potential to significantly ameliorate supply chain management is furthermore present (Gupta, 2017; Tian, 2016). The current supply chain management systems are fragmented, and tracking products’ origins and shipments is burdensome. On a blockchain platform, every movement of the product from the initial departure point to the final destination can be tracked concurrently by everyone involved in the supply chain. This could eliminate fraud and errors, expand efficiency and security, reduce costs associated with paperwork, and build sustainable inventory management and control systems. In other industries, especially those in which multiple companies are involved in the production cycle, and where the final product consists of many parts, such as the automobile and aircraft industries, tracking and monitoring components of the products and even the asset ownership and the right-to-use of the products could provide better functioning, responsible, and sustainable systems. Airbus, for instance, is in the process of integrating blockchain technology to track and monitor the parts of aircrafts used in the production process (Hackett, 2017).

    Current and Future Uses in the Hospitality Industry

    While the technology is still in its infancy, hotels, restaurants, airlines, travel agencies, and other hospitality businesses could ameliorate their service quality, guest satisfaction, and profitability by integrating blockchain technology. As more hospitality businesses adopt blockchain technology, stakeholders in the hospitality industry will collectively profit from its use. In the following section, they present some of the practicable ways in which blockchain technology can be used in the hospitality industry.

    Tracking guests

    Hotels can be instantly updated birthright from the time that a guest leaves her home for the airport to when she checks in for her flight and even upon arrival at the hotel. This tracking can expand efficiency by reducing wait time during the check in process and thus expand guest satisfaction. While tracking guests’ movements might be considered an invasion of privacy, accessing the information will require the guest’s authorization and individuals will be able to determine the degree of information that is shared with hotels or other members in the network. Therefore, blockchain technology has the potential to provide seamlessly integrated guest services without intruding guests’ privacy.

    Tracking food

    Tracking and monitoring foods is applicable to the restaurant industry. Indeed, food consumed in restaurants is allotment of the supply chain dawn at the farm. Thus, extending blockchain based supply chain management systems to restaurants could provide better character control and food safety in restaurants. That is, restaurants could collaborate with their food suppliers to be involved in the blockchain platform that tracks and monitors the food. Furthermore, restaurants can allow their guests to check the origins of and routes taken by the food used to prepare their meals, via blockchain technology. Simply put, blockchain technology can facilitate trust in restaurants in regards to the character of the ingredients used to prepare meals.

    Airline and hotel points

    Loyalty programs often create more problems than they solve. Hotels and airlines can build loyalty programs on a blockchain platform and issue loyalty tokens as rewards to their guests (Kowalewski, McLaughlin, & Hill, 2017; Kowalewski & Simon, 2016). The loyalty tokens are similar to loyalty points; however, blockchain technology enables customers to freely buy, sell, or exchange their loyalty tokens with others. Allowing customers to exchange loyalty points in an open exchange can furthermore expand the competitiveness of loyalty programs and expand overall service quality. For example, the market value of company B’s tokens might be higher than company A’s tokens due to the character of products and/or services those tokens can buy. So a company that is worth more than the other is likely to be the preferred in the market, incentivizing other firms and thus the system as a whole to expand the character of their offerings to attract more customers. Furthermore, loyalty tokens could furthermore be used across industries; consumers would be able to exhaust their hotel loyalty tokens in restaurants, airlines, coffee shops and other businesses through blockchain platform. In collaboration with IBM, startup technology company Loyyall is developing a blockchain platform where consumers can redeem, buy, sell, or exchange their loyalty points (Hill, 2017).

    Digital ID

    Blockchain technology could provide a solution to identity theft. In airports, hotels, and restaurants, costumers must often present their IDs as proof in order to pass security and check in to their flights, hotel rooms, or consume alcoholic beverages. This makes consumers vulnerable to identity theft; not only by the person who is checking IDs but furthermore other people around who might obtain distinguished personal information. As a solution to this exposure, IDs, including birth certificates, driver’s licenses, social security numbers, and passports, among others, can be stored in a blockchain platform and people can be given permissions to check and validate IDs (Davidson , De Filippi, & Potts, 2016). Similar to QR codes, IDs can be in a configuration of cryptographically-secured codes that allow verification of one’s identity without seeing essential personal information. In addition to eliminating the likelihood of loss or theft of physical IDs or personal information, digital IDs that are stored on a blockchain could furthermore eliminate forgery (Gupta, 2017).

    Smart Contracts

    Smart contracts can be adopted to facilitate both minor and major transactions in the hospitality industry. Hotels and travel agencies, for example, could streamline their industry relationships with smart contracts on blockchain platforms. Similar to a legal contract, a smart shrink between hotels and travel agencies would Have the contractual provisions that are predetermined by the transacting parties (Crosby et al. 2016; Gupta, 2017; Peters & Panayi, 2016). Anytime a transaction occurs, it is recorded and shared on the blockchain. Once transactions are recorded, the payments can be processed immediately based on contractual terms. Not only would this facilitate payment, but would furthermore further optimize play sales through better collaboration between hotels and travel agencies.

    In a similar vein, the execution of franchise agreements and management contracts could be carried out with smart contracts between franchisor, franchisee, management companies, and asset management solid according predetermined governance rules to eliminate contest of interest and expand efficiency.

    The applications of smart contracts can be extended to the guests, completely eliminating the check-in process. Through blockchain technology where digital IDs are stored along with an authorized account for payments, hotel rooms can be assigned to guests and a digital key can be recorded into the blockchain technology once the payment is received. The most distinguished advancement in this smart shrink is the fact that both IDs and payment information are encrypted via secure codes and are thus not exposed to theft (Gupta, 2017). The application of this smart shrink can be extended to other industries, such as car rentals, office rentals, leased apartments, and so on. Airbnb properties can furthermore apply such a smart shrink to resolve some existing security concerns., a German startup is working on what is essentially a blockchain-based lock that self-executes based on the lock owners’ predetermined rental terms. These blockchain based locks are installed in properties—cars, houses, offices, etc. and the available dates, along with rental amounts are posted on the smart shrink where renters can bespeak these rental properties; once the payment is received, the smart shrink authorizes access to renters for the rental period.

    Furthermore, smart contracts can facilitate travel insurance in the event that a flight is delayed or canceled. The contractual terms can be allotment of the blockchain network via a smart shrink and can be executed if a delay or cancellation occurs.

    Many companies in the hospitality and travel space are betting expansive on blockchain’s bandwagon effect to facilitate cheaper, better, and faster experiences. TUI Group is already using blockchain technology to manage the distribution of its inventories and assets and wield internal processes (Watkins, 2017). Only time will declare whether the prophecy fulfills itself. However, one thing remains true: during a time when the economy is strong, and the hospitality and travel industry is optimistic about its future, the benefits of blockchain technology are likely to attract the interest and investment dollars of companies across the spectrum (Bujarski, 2018).

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    Dogru Headshot

    Tarik Dogru earned his Ph.D. in Hospitality Management from University of South Carolina, and holds Master’s degree in industry Administration from Zonguldak Karaelmas University in Turkey.Prior to joining the Boston University School of Hospitality Administration faculty, he was an adjunct faculty at University of South Carolina (2013-2016) and research lieutenant at Ahi Evran University (2009-2012) in Turkey. He has taught a variety of courses, including Economics, Finance, Accounting, Hospitality, and Tourism in industry and hospitality schools. He is a Certified Hospitality Educator (CHE) and holds Certification in Hotel Industry Analytics (CHIA) from American Hotel & Lodging Educational Institute. Tarik’s research interests span a wide ambit of topics in hospitality finance, corporate finance, behavioral finance, existent estate investment trusts (REITs), hotel investments, tourism economics, and climate change. Mody Makarand Mody, Ph.D. has a varied industry background. He has worked with Hyatt Hotels Corporation in Mumbai as a Trainer and as a character Analyst with India’s erstwhile premier airline, Kingfisher Airlines. His most recent experience has been in the market research industry, where he worked as a qualitative research specialist with India’s leading provider of market research and insights, IMRB International. Makarand’s research is based on different aspects of marketing and consumer behavior within the hospitality and tourism industries. He is published in leading journals in the field, including the International Journal of coincident Hospitality Management, Tourism Management Perspectives, Tourism Analysis and the International Journal of Tourism Anthropology. His work involves the extensive exhaust of inter and cross-disciplinary perspectives to understand hospitality and tourism phenomena. Makarand furthermore serves as reviewer for several leading journals in the field. In topple 2015, he joined the faculty at the Boston University School of Hospitality Administration (SHA). He received his Ph.D. in Hospitality Management from Purdue University, and furthermore holds a Master’s degree from the University of Strathclyde in Scotland. ChristieChristie Leonardi is a senior at Boston University School of Hospitality Administration. She was a Management Trainee in Mandarin Orchard Singapore and a Pubic Relations Intern in AccorHotels’ corporate office in modern York. She currently holds a position in the Museum of Fine Arts in Boston as a Corporate Relations Intern. Her interests include traveling, food, coincident technique and existent estate.


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  • June 12th, 2017 in Spring 2017, Technology, Trends



    By Mike Oshins

    Over the past 15-20 years, changes in hotel ownership and management, the growth and evolution of online reservation systems and the proliferation of lodging alternatives Have altered the hospitality landscape, bringing modern complexity to the industry. Two decades ago, a Marriott hotel was commonly owned and managed by Marriott; now, many are owned by one company, franchised with the Marriott name, and managed by a third company.  While customers used to be able to pick up the phone and convoke a hotel’s reservations headquarters or exhaust their local travel agency to bespeak a room, today online distribution systems relish Expedia, Travelocity, and Kayak are powerful intermediaries that Have outright but replaced traditional consumer travel agencies.  Travelers may select among many alternatives to hotels for lodging, including AirBnB, HomeAway, Flipkey, and VBRO.  Mergers and acquisitions continue to multiply, exemplified most notably by Marriott’s purchase of Starwood to create the world’s largest hotel company with 30 brands. Millennials’ preferences Have pushed the evolution of modern brands with modern thinking about hotel design, as demonstrated with Hilton’s Tru, Best Western’s Vib and Glo chains, and Intercontinental’s EVEN.


    Hotel companies are expanding their portfolios to include Millennial-focused brands relish InterContinental’s EVEN Hotels and Tru by Hilton. Image sources: Creative Commons InterContinental and Tru

    Travel patterns Have furthermore changed.  China has become the largest exporter of tourists in the world, totaling almost 100 million outbound travelers and representing almost one in ten tourists in the world. Chinese travelers furthermore spent the most money, roughly $250 billion in 2015. For reference, the second highest spenders were Americans at $110 billion.  In the U.S., national discussion about travel bans, modern barriers to hiring non-domestic seasonal workers (a key component in modern England’s summer tourist season), practicable elimination of the national Brand USA marketing effort, and tenuous Cuba travel policies are outright creating uncertainty in the tourism market.  These changes and ambiguities present modern challenges, both big and small, for the hospitality industry, requiring those at the forefront of the domain to anticipate and respond to the subsequent fallout.

    Prolific industry author John Kotter states that the main role of leadership is dealing with change.  Depending on how it’s viewed, with the arrogate perspective and pliancy, change can present an organization with modern opportunities—the possibility of taking edge of changing demographics, modern technologies, or the emergence of modern markets.  Change can furthermore raise dilemmas, such as the need to address modern competitors, contend with a exigency or cope with a want of available employees.  Even before developing and implementing successful change management processes, organizational leaders must Have the skill to recognize the opportunities and dilemmas presented by change and know how to umpire about them.  To contemplate the need for change, to identify modern realities, either current or future, one must be able to view the expansive picture and the current climate in modern ways.  This skill to contemplate the present and near future from a modern vantage point is one of the main reasons common Electric (GE) CEO, Jeff Immelt, moved GE world headquarters to Boston’s expanding Seaport District.  GE’s modern home will “place his leadership team in a vibrant city with a world-renowned innovation scene, instead of in a wooded Connecticut suburb” (Boston Globe), thus giving his senior team a modern perspective, and the occasion to originate closer connections with institutions able to stimulate modern ideas and create a modern pipeline for employees.   Other than poignant a $240 billion company’s world headquarters—something that’s not always feasible to achieve—how else can one enhance a leadership kit with tools for responding effectively to change?  The skill to umpire more creatively, configuration modern habits, change paradigms, reframe one’s perspective, and umpire differently by learning modern ideas are outright tools that can aid in addressing the first component of leading change, that is identifying that change is needed.  The following examples highlight some of the ways one can learn to be more successful in thinking about and capitalizing on the opportunities presented by change.

    Creative Thinking 21st May 1974: A chainmail-clad John Cleese reads a newspaper while Graham Chapman smokes a still pipe on the set of 'Monty Python and the Holy Grail'. (Photo by John Downing/Express/Getty Images)

    Popular British comedy group Monty Python expressed creative thinking in outright of their productions, further captured by their tagline, “And now for something completely different!”.  Pictured above: A chainmail-clad John Cleese reads a newspaper while Graham Chapman smokes a still pipe on the set of ‘Monty Python and the Holy Grail’. (Photo by John Downing/Express/Getty Images)

    IBM interviewed 1500 CEOs around the world in 2010 and establish Creativity is now the single most distinguished leadership competency and is needed in outright aspects of leadership.  If one thinks in the identical way as everyone else, the occasion for modern ideas (and modern solutions) is limited.  The irreverent and offbeat humor of Monty Python is captured in their tagline, “And now for something completely different!”  umpire Different! is the mantra for Steve Jobs and Apple, as eloquently explained in Simon Sinek’s Start with Why. Sir Ken Robinson, author and the holder of the top TED Talk carry out Schools Kill Creativity, defines creativity as, “the process of having original ideas that Have value.” There are many ways to expand creativity, including:

  • Establishing a culture in which failure is a allotment of learning.  “A growing number companies are explicitly rewarding failure – giving cash prizes or trophies to people who foul up (WSJ). Earlier in his career, Johnson & Johnson CEO James Burke once went to contemplate Mr. Johnson after his product launch failed miserably.  Instead of being fired as expected, Mr. Burke establish instead that Mr. Johnson shook his hand and congratulated Burke on the failure.  Along with the handshake, Burke was given the following recommendation that became his philosophy: “Business is about making decisions.  You can’t originate decisions without failures.  Don’t ever originate that identical mistake again, but please, sustain making modern mistakes!”  Burke made this philosophy “always making modern mistakes” an distinguished value within his leadership vision. Similarly, Michael Jordan credits his success with skill to overcome the horror of failure: “I’ve missed more than 9000 shots in my career. I’ve furthermore lost more than 300 games. 26 times I’ve been trusted to retract the game winning shot and missed. I’ve failed over and over and over again in my life. And that is why I succeed.”
  • Collaboration.  Ken Robinson touts that creativity loves collaboration as even individual creativity is almost always stimulated by the work, ideas and achievements of other people. Author Daniel Goleman agrees:  “A close-knit team, drawing on the particular strengths and skills of each member of the group, may be smarter and more effectual than any individual member of that group. Yale psychologist Robert Sternberg calls it “group IQ”—the sum total of outright the talents of each person in the group. When a team is harmonious, the group IQ is highest…The value of collaboration is a difficult lesson to learn in [some] cultures, where the trailblazing lone hero has long been idolized, and where the role of the individual are so often placed over those of the group. But even those working solitary can learn the advantages of teamwork.”
  • Positive thinking.  It has been proven that merely thinking you are more creative increases creativity. Change your attitude with the mantra: I am creative. IDEO founder David Kelley establish positive reinforcement increased creativity for employees and helped discover modern solutions to design challenges.  As people become more comfortable with the realization that they can be more creative, the upward spiral of success is reinforced.  Goleman concurs: “The more you can sustain your own originality, the more confidence you get, the greater the probability that you’ll be creative in the future.”
  • Challenge the Rules. Pablo Picasso believed in challenging tradition, “Every act of creation is first of outright an act of destruction.”  A questioning attitude of asking “why” multiple times for the identical question (e.g. why carry out they exhaust time clocks for front line employees?) may result in discovering established rules may be hurting more than helping and organization. For example, typewriters were designed with QWERTY keyboards to avoid keys from sticking together if the operator went too swiftly (i.e. slowed down how swiftly one could type).  Why carry out computer keyboards still exhaust this configuration as a default?  World War II American five-star common Douglas MacArthur  believed “you are remembered by the rules you break.”
  • Humor. “More than four decades of study by various researchers confirms some common-sense wisdom: Humor, used skillfully, greases the management wheels” (Sala). When people are working together on a problem, those groups that laugh most readily and most often are more creative and productive than their serious counterparts. Joking around makes suited sense because playfulness is itself a creative state (Goleman). The exhaust of humor or “being silly” can reduce stress and create a learning environment conducive to modern ideas.  Author Jonah Lehrer agrees: “When people are exposed to a short video of stand-up comedy, they solve about 20% more insight puzzles.”
  • Brainstorming.  pile upon the traditional brainstorming technique where ideas are developed in an atmosphere of non-judgmental environment, additional creative methods Have emerged, including Edward Debono’s Six Thinking Hats, where “wearing” different colored hats requires addressing the situation with a special focus, Synectics’ inclusion of springboard and excursion techniques to expand opinion generation and intellect mapping to visually develop ideas. At IDEO, brainstorming sessions include the “odd person in” technique, involving people from very different backgrounds that can spark modern ideas.
  • New Habits

    Creating a modern habitude or set of habits is another way to change how they contemplate things.  In his iconic 1989 book, The 7 Habits of Highly effectual People, Stephen Covey illustrates how powerful an influence habits can be in their lives. Covey describes a habitude as the intersection of knowledge, skill, and desire: “Knowledge is the what they carry out and why they carry out it [principles], desire is the motivation, the want to do, and skill is the how to do.” His seven habits—Be Proactive, originate with the halt in mind, attach first things first, umpire win/win, seek first to understand…then be understood, Synergize, and Sharpen the saw—provide a way of thinking and acting in industry and life.  By embracing these habits, one can maintain a better equilibrium and create the occasion to find modern ways of looking at situations.

    Barista Kim Jung Mi, a mother who had left the workforce seven years ago and is now employed by Starbucks Coffee Korea Co. under its "returning-mom" program, right, serves a customer at one of the company's stores in Gimpo, South Korea, on Friday, March 7, 2014. Starbucks Korea's "returning-mom" program is allotment of a drive to raise female participation in Asia's fourth-largest economy as the nation's first female leader, President Park Geun Hye, tries to counter the effects of an aging population. Photographer: SeongJoon Cho/Bloomberg via Getty Images

    Through role playing, discussion, and feedback, Starbucks employees are trained to develop habits of willpower. (Photographer: SeongJoon Cho/Bloomberg via Getty Images)

    Charles Duhigg’s more recent bestseller, The Power of Habit, addresses the opinion of habits as “why they carry out what they carry out in industry and life.”  Taking a psychological approach, Duhigg explores the theory of cues (something that triggers a habit), routines (actions taken in response to cues), and rewards (the positive experiences resulting from routines), which together comprise the habitude loop.  For example, Starbucks develops habits of willpower to wait on their staff deal with stressful times. Through role-playing, discussion, and feedback, they train employees how to react to a cue (e.g., an ireful customer or a assiduous period) by choosing a inescapable routine ahead of time (e.g., remaining calm, looking for solutions, etc.). When an inflection point arrives (cue), employees are able to wield the situation smoothly, resulting in the reward of a satisfied customer and successful chaos management. In this scenario, Starbucks helps their staff create habits by helping them change how they approach and address dilemmas.  One employee now thinks of his green Starbucks apron as a shield – when he puts it on, ireful customers can no longer affect him!


    Taking a psychological approach, Duhigg explores the theory of cues (something that triggers a habit), routines (actions taken in response to cues), and rewards (the positive experiences resulting from routines), which together comprise the habitude loop.


    “The power of reframing things can unlock a vast array of solutions to problems expansive and small,” states author Tina Seelig.  She illustrates reframing using a classic scene from the Pink Panther movie (a hospitality example, no less).

    Inspector Clouseau: Does your dog bite?

    Hotel Clerk: No.

    Clouseau [bowing down to pet the dog] Nice doggie.

    [The dog bites Clouseau’s hand.]

    Clouseau: I thought you said your dog did not bite!

    Hotel clerk: That is not my dog.

    We might be tempted to fault the clerk when the dog bites Clouseau, but the clerk’s final statement surprises us and causes us to account the situation differently.

    One of the key elements of reframing is to view a circumstance with a fresh perspective. In Tom Stoppard’s play, Rosencrantz and Guildenstern are Dead, they contemplate Shakespeare’s classic memoir of Hamlet through the lens of two minor characters, and in the Broadway hit Wicked, the Wizard of Oz memoir is interpreted from the witches’ perspectives, revealing a more complex and altered understanding of the Wicked Witch of the West and Glinda, the suited Witch.  Reframing a situation allows the possibility of modern lessons and solutions which otherwise may disappear unnoticed.

    NEW YORK - JUNE 6: (HOLLYWOOD REPORTER OUT) American singer and actress Idina Menzel of "Wicked" performs on stage during the "58th Annual Tony Awards" at Radio City Music Hall on June 6, 2004 in modern York City. The Tony Awards are presented by the League of American Theatres and Producers and the American Theatre Wing. (Photo by straightforward Micelotta/Getty Images)

    The Broadway hit Wicked, the Wizard of Oz memoir is interpreted from the witches’ perspectives, revealing a more complex and altered understanding of the Wicked Witch of the West and Glinda, the suited Witch. (Photo by straightforward Micelotta/Getty Images)

    In their approach to reframing, authors Bolman and Deal exhaust frames as a useful tool to originate sense of organizations.  The four frames, structural (emphasizing roles & policies), human resource (highlighting human needs, skills and relationships), political (focuses on power, contest and competition) and symbolic (emphasizing culture, meaning, ceremonies and stories) present different perspective on how to umpire about organizations.  Each frame provides a different language and model in managing, evaluating, diagnosing and understanding and leading an organization.  Altering the way in which they typically frame an organization can wait on us better communicate with those who interpret the organization differently.  Viewing an organization from different frames may furthermore unleash a variety of modern ideas to address current or emerging dilemmas or raise up modern opportunities to respond to change in their world.

    Another example of reframing is illustrated, quite literally, in how they view the world. This spring, 600 classrooms in the Boston Public School system switched from teaching the traditional European-centric Mercator map, developed in the 1500s, to the Peters Projection map (1974), in which land masses are more accurately represented in relation (size and proximity) to one another.  For example, using the Mercator map, Greenland and Africa appear the identical size; in the Peters map, however, Africa, which is 14 times larger than Greenland, is more proportionally displayed.  This opinion was brought to mainstream US in a 2001 West Wing clip by the ‘cartographers for social equality’. At one point, when confronted with these modern perspectives, a West wing official asked, “You denote Germany is not where they umpire it is?”— to which a cartographer responded, “Nothing is where you umpire it is.” The issue of perspective and change about their world, met with incredulity in a fictional drama, became reality this spring in Boston Public Schools.

    Paradigms Shifts

    The Oxford Dictionary defines a paradigm as “a typical example or pattern of something; a pattern or model.” Scientist Thomas Kuhn introduced the concept of the paradigm shift in his influential 1962 book, The Structure of Scientific Revolutions.  Groundbreaking paradigm shifts include examples in areas as diverse as physics, health, and astronomy—think of what Galileo had to disappear though to convince royalty that the earth rotated around the sun (Copernicus theory) when most astronomers believed the transpose to be true.  A paradigm shift changes how they Look at things. Malcolm Gladwell’s best-selling books focus on rethinking preconceived ideas, starting with his breakthrough 2006 bespeak The Tipping Point and continuing with his more recent bespeak David and Goliath, which offers several existent life examples of when a perceived strength can be a weakness and a weakness… a strength.  For example, an extraordinary tall number of successful entrepreneurs are dyslexic, including Jet Blue founder David Neeleman.  The challenge of dyslexia as a child may provide coping skills later in life – billionaire Sir Richard Branson of Virgin Air considers his dyslexia his greatest industry advantage.

    AUSTIN, TX - MARCH 15: Journalist Malcolm Gladwell attends 'Bill Gurley And Malcolm Gladwell In Conversation' during the 2015 SXSW Music, Film + Interactive Festival at Austin Convention headquarters on March 15, 2015 in Austin, Texas. (Photo by Robert A Tobiansky/Getty Images for SXSW)

    “As the playwright George Bernard Shaw once attach it: “The reasonable man adapts himself to the world: the unreasonable one persists in trying to adjust the world to himself. Therefore outright progress depends on the unreasonable man,” from Malcolm Gladwell’s David and Goliath: Underdogs, Misfits, and the technique of Battling Giants. (Photo by Robert A Tobiansky/Getty Images for SXSW)

    In business, paradigm shift examples include disruptive innovations (e.g., the Internet, mobile technology, and expansive data analytics), shifting global economies, climate change, employee and societal demands, and changing consumer preferences.  Futurist Joel Barker explains that when a paradigm shift occurs, everything resets to zero, past successes guarantee nothing, and shifting industry models shift to create modern realities.  For example, once-successful expansive box stores and corporations that could not adjust to the digital age, such as Borders Books, Blockbuster, and Kodak, went bankrupt. Compare these examples to Netflix, which was able to successfully navigate from their industry model of renting DVDs through the mail to streaming movies and television shows over the internet to expand their market share.  Flexibility to adjust to paradigm shifts is a powerful tool. As Charles Darwin explains in describing his iconic research: “It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.”           

    UNSPECIFIED - AUGUST 01: Biology - Evolutionary theory: theories of Jean-Baptiste Lamarck and of Charles Darwin. Illustration. (Photo by DeAgostini/Getty Images)

    An illustration of Darwin’s well-known opinion of “Survival of the Fittest” (Photo by DeAgostini/Getty Images)       

    Self-Reflection and Understanding

    Shifting paradigms and changing one’s perspective starts with self-reflection: the better they understand ourselves, the better they can approach change.  Daniel Goleman provides the multi-faceted framework of emotional intelligence, including two personal competencies (self awareness and self management) and two social competencies (relationship management and social awareness) that should be examined to wait on better understand moods and how they affect those around them. Peter Drucker asserts in order to be productive over a 50-year work-life it is distinguished to cultivate a deep understanding of one’s self.  He offers several penetrating questions in his Harvard industry Review article Managing Oneself, including “How carry out I work?” “Where carry out I belong?” and  “What can I contribute?”

    There are furthermore many tools available to wait on provide insight into the ways in which they each view and navigate the world around us. With over two million Myers Briggs Type Indicator (MBTI) assessments being administered every year in more than 70 countries, this personality profile tool, based on the work of notable psychologist Carl Jung, continues to be wildly Popular in helping people better understand themselves. Key MBTI elements include how they focus their energy (introversion vs. extroversion), the way they retract in information (sensing vs. intuitive), originate decisions (thinking vs. feeling) and their attitudes toward the external world and how they orient ourselves to it (view the world to be organized and orderly vs. springy and be experienced).  The expansive Five personality traits, Fundamental Interpersonal Relations Orientation (FIRO), Thomas-Kilmann contest mode instrument (TKI), and the Strong Interest inventory are outright additional tools that can wait on analyze one’s preferences.

    Identifying one’s personal values is furthermore a strong trend in industry today, with a plethora of instruments available for self-discovery.  For example, after a two-day, internal values-clarification exercise, each member of the senior leadership team of the Vail Centre posts his/her top five values on the company’s website for everyone to see.  Determining and focusing on one’s strengths rather than one’s weaknesses is the cornerstone approach to Gallop Poll and Don Clifton’s Strengthfinder 2.0.  This self-assessment tool enables one to identify their  top 5 of 34 different talent themes, from Achiever to WOO (winning others over).  By better understanding one’s natural instincts, strengths, weaknesses and personal preferences, one can expand the likelihood to learn how other colleagues or customers from different backgrounds, cultures, generations or perspectives contemplate things differently, enabling modern approaches or frames to address change.

    In his book, The Spirit to Serve, Marriott International founder J.W. Marriott, Jr.  adopted 19th century philosophy Alfred North Whitehead’s  perspective when developing the Marriott Way, “The technique of progress is to preserve order amid change and to preserve change amid order.”  The skill to umpire differently as the hospitality industry moves into uncharted territories—both nationally and internationally, within organizations and in local markets, online and in person—is becoming more distinguished as change continues to evolve at a faster pace than ever before.  Being agile and open-minded enough to adapt, addressing challenges and/or seizing opportunities, will determine which companies wither away and which ones thrive.  At the heart of these circumstances is the skill to recognize trends, realize the need for change and act on these situations in ways that navigate the needs of an organization, and its staff and customers.  Mental flexibility, adaptability, creativity and personal awareness are key tools in this process that can wait on hospitality leaders contemplate things from different perspectives, gain modern insights, develop and pilot modern ideas and better respond to an ever-changing world.

    PDF Version Available Here


    Michael Oshins is Associate Professor of the drill of Leadership in the School of Hospitality Administration at Boston University. He is former Vice President of Integer Dynamics, a hospitality consulting solid focused on operational productivity and technology. He holds a doctorate in human resource education from Boston University and a master’s degree in hotel administration from Cornell University. Email: References
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  • June 12th, 2017 in Hotels, Spring 2017, Technology, Uncategorized

    Rack play cover

    By Peter Szende and Pooja Reddy

    Front-of-House & Front Desk

    Have you ever really noticed the front desks of the hotels that you visit? Chances are, you don’t umpire twice about it—because more and more, the front-of-house region is designed to be subtle and unobtrusive. If you are conscious of the front desk area, it’s more likely to be due to its high-tech accoutrements and services. Some hotels now attain equipped with features relish automated check-in kiosks and even computerized luggage carriers. While this may not be the standard, it’s rapidly becoming more common and indicates the direction that hotels are taking for their front-of-house environments. Since the front desk is usually the first point of contact that guests Have with a hotel and is where they check in and out, request information, settle their accounts, and present different types of feedback (Steadmon & Kasavana, 1988), the accessibility and style of this region can originate a huge impact.

    Prior to the introduction of computerization and other technological updates, front office tasks were performed quite differently, although the front desk was just as integral and the system  was extremely orderly and efficient. The evolution of the hotel front-of-house, as overseen by the front office department, over the last several decades indicates larger changes and trends within the hospitality industry itself. This article takes a trip back in time and offers a glimpse of the past through an exploration of the conventional systems of hotel front office racks.

    Let’s first disappear back to the early 20th century: during this time, hotels were considered to be “manual,” and most functions were carried out by systems that leveraged heavily on human capital. Besides billing and accounting, the hotel staff were liable for duties relish play status checks and guest registration. As advancing technology began to address some of these functions, hotels gradually transitioned to the exhaust of “electromechanical systems which were semi- automated, before poignant to a wholly computerized, fully automated arrangement” (Steadmon & Kasavana, 1988). The heart of the front desk became a metal file system that consisted of pockets to hold rooming and reservations slips, called the play rack. You may already be chummy with the play rack without knowing: it is from this system that they Have derived the term “rack rate,” the undiscounted expense a hotel will permeate for a room. Formerly, when guests arrived at a hotel without a reservation, “traditionally, the standard rate was posted on or near the play rack.” (Steadmon & Kasavana, 1988, p. 110).

    John Willy play Rack [Advertisement] (1920, July). The Hotel Monthly, 28(328) p. 11.

    John Willy play Rack [Advertisement] (1920, July). The Hotel Monthly, 28(328) p. 11.

    The pneumatic tube was furthermore a system used in earlier hotels. Behind the clerk’s desk, where the mail and information racks were located, a battery of pneumatic tubes connected to every department of the hotel. These extensively utilitarian tubes carried a mass of information ranging from mails and orders to charges and meal checks. These tubes saved a lot of time and labor and accelerated several procedures by creating a network between service departments (Willy, 1919). Even as recently as the 1980s, you could route restaurants checks through this pressurized air network directly to the hotel’s front office cashier. In just a few seconds, the check traveled through the pneumatic tube to the bill clerk, who would quickly post the charges before the guest checked out.

    Key Front Office Positions in a Manual Hotel

    Today, it would be almost impossible to maintain a play rack or pneumatic tube system because the sheer size and breakdown of coincident hotels render it completely impracticable. However, hotels in the past were smaller and contained fewer major departments. For example, the modern Yorker Hotel’s front office consisted of three departments: the reservations department, the mail and information department, and the rooms department. Using the modern Yorker Hotel as of 1931 as an example, they can trace the history and evolution of these departments and the positions within them.

    Reservations Department

    Reservation clerk: The reservation clerks answered reservation telephones and filed reservation slips or tabs in the play rack. The slips or tabs were usually color-coded to denote the type of reservations. Below is an example of a color code system (Dukas, 1960, pp. 24-25).

    Regular Reservation Late Arrival Special Attention Conventions Travel Agency Reservation

    In more advanced reservation systems, hotel reservationists completed carbonated, perforated rack slips on a typewriter, after which copies were distributed to various areas of the front office and hotel as needed.

    Mail and Information Department

    Mail and information clerk: relish the reservation clerks, the mail clerks answered telephones and inquiries specific to their department’s purview. They furthermore made verifications of “unregistered” reports which are given out by switchboard operators. The mail clerk checked emergency arrival slips and accepted incoming telegrams and special delivery letters. He/she furthermore handed out keys and mail to guests.

    Tube clerk: The tube clerks were in permeate of receiving and dispatching mail to and from the different floors and departments through the pneumatic tube system.

    Rooms department:

    Room clerk: play clerks were stationed at the registration desk to serve the guests. The play clerk had to be knowledgeable about the different types of rooms in the hotels, along with their respective amenities, furniture, and location. The play clerk instantly knew how to wield each arrival, as the color of the slips the guest carried or received indicated the type of booking (Ducas, 1960).

    Rack clerk: Rack clerks were in permeate of checking the status and condition of the rack at any point of time, as well as at specific hours against vacancy reports, and made any necessary corrections.

    Stacks of Racks: the Different Types of Racks

    The play rack is only the tip of the iceberg: hotels adopted a rack system for just about every facet of their front desk operations. Not only did they each serve different purposes, but the various structures furthermore reflected different styles and systems in vogue at the time. It may be difficult to imagine what they might Have looked like; so, since a picture is worth a thousand words, they Have compiled a quick photo gallery to create a visual usher to the past.

    Reservation Rack

    The reservation racks contained the names of the expected guests and their arrival dates. Typically, there was one rack for every day of the upcoming months and fewer racks for future arrival dates. In larger hotels, racks often covered the whole wall of the reservation office.

    Dumont [Advertisement] (1917, April). Office Appliances, XXV(4) p. 26.

    Dumont [Advertisement] (1917, April). Office Appliances, XXV(4) p. 26.


    Room Rack

    According to Ismail (2002, p. 200), “The play rack would identify each play type and configuration at a glance,” as well as the occupancies and vacancies available in the hotel (Dukas, 1960, p. 37). Managers would heed each play on the rack according to a inescapable color code in order to note the play status. The unique code would provide information regarding the occupancy, cleanliness, and pricing of that particular room. The play rack not only indicated the type and location of the room, but furthermore details relish the room’s occupancy status, its rate for single and double occupancy, and its connections to abutting rooms (Dukas, 1960).

    Much relish today’s front desk set-ups, play racks were designed to be nearly invisible upon check-in. Sophisticated systems were typically mounted and arranged in a 60-degree angle behind the front desk. A typical play rack is shown in the picture below.

    Handling Guests’ Accounts and Reservations (1953, January). Hotel Monthly, 61(718), p. 45.

    Handling Guests’ Accounts and Reservations (1953, January). Hotel Monthly, 61(718), p. 45.

    This is how the ‘The Hotel World Magazine’ described the job of play clerks upon visiting a hotel in modern York City:

    Swan, W.R. (1921, November 12). The Hotel World: The Hotel and Travelers Journal, 93(20), p. 10.

    Swan, W.R. (1921, November 12). The Hotel World: The Hotel and Travelers Journal, 93(20), p. 10.

    As with any expostulate feature, time and innovation gradually caused the play rack to evolve. Frederick A. Muschenheim, the brother of the owner of the Astor Hotel in modern York, made several innovations in hotel technology (Miscellaneous Hotel Notes, 1913, p. 66)., one of which was a play rack frame with springy card holders mounted on pivots.     

    Muschenheim, F. (1908, February 11). Hotel play Rack. U.S. Patent No. 878, 554. Washington, DC: United States Patent Office.

    Muschenheim, F. (1908, February 11). Hotel play Rack. U.S. Patent No. 878, 554. Washington, DC: United States Patent Office.

    Sales Rack

    To avoid selling the identical play twice and to facilitate the sales of rooms, assiduous hotels used a control rack that consisted of the cards of every play in the hotel that was available for sale.

    Room Sales Rack with expense Zones and Markers

    The Hotel Monthly (1920, March), 28(324), p. 31.

    The Hotel Monthly (1920, March), 28(324), p. 31.

    Letter and Key Rack

    The letter and key racks contained pigeon holes for the aforementioned items. They maintained guest keys and were arranged by play number.

    Letter and Key Rack at the Hilton Istanbul

    Hospitality Archive, Hilton College, University of Houston

    Hospitality Archive, Hilton College, University of Houston

    Key racks were sometimes combined with the play rack in order to minimize the number of racks. Below is an example:

    Used by permission. Copyright ©2017 outright rights reserved. American Hotel Register Company.

    Used by permission. Copyright ©2017 outright rights reserved. American Hotel Register Company.

    Information Rack

    These racks contained the names and play numbers of outright the registered guests of the hotel. The racks were alphabetically organized by the guests last name.

    A Rotary Type Information Rack

    Source: Kohler [Advertisement] (1921, July 2.) The Hotel World: The Hotel and Travelers Journal, 93(1), p. 59.

    Source: Kohler [Advertisement] (1921, July 2.) The Hotel World: The Hotel and Travelers Journal, 93(1), p. 59.


    Room Racks with Electric Signaling Devices – Early Efforts

    In order to facilitate instant communication between the play clerks and the housekeeping department, the Astor Hotel in modern York introduced an electrical system with lights in the early 20th century. The system is said to Have consisted of a set of sockets for small electric bulbs which were positioned at the front of the play rack. The system was directly linked to bulbs on the doors of every room. When the play clerks received notice from the cashiers that a guest had vacated the room, they would region a bulb into the corresponding play number on the rack. The bulb would light up, and the light on the play door would immediately twinkle up and down at regular intervals. This brought the attention of the housekeeping staff, who inserted a key below the bulb on the door when he or she went in to originate up the room. This would then turn off both the light on the door and the light on the play rack as well. The automatic signal device saved a considerable amount of time and labor (Efficiency at Astor, p. 26).

    Room Racks with Electric Signaling Devices – Efforts at the Advent of Computerization

    In the 1970s, leading hotel chains of the time, such as Hilton and InterContinental, significantly enriched their hotel signaling systems. Following in the footsteps of Muschenheim, play racks evolved to be complemented by consoles that indicated play status and housekeeping requirements. Toward the halt of the 1980’s, computerized systems based on a combination of lights enhanced front office operations by indicating the exact play status next to each play rack slip. Housekeeping employees could change the status of the play rack remotely by turning their keys in a socket located in the guest rooms.

    Room Status Light Combinations on the play rack at the Forum Hotel Budapest in the 1980s. (Courtesy of Péter Várhegyi)


    In automated systems, most of the racks discussed above were eliminated, as information is internally managed by the computer systems. Today, it is rare to find any hotel operating on a rack system; letter and key racks occasionally still exist to preserve a memento of the past.

    PDF Version Available Here

    image 11 Dr. Peter Szende has over 25 years of management sustain in the hospitality industry in both Europe and North America. He joined the Boston University School of Hospitality Administration as an lieutenant Professor in 2003. He was promoted to Associate Professor of the drill in 2010. Currently, he serves as Associate Dean of Academic Affairs.Pooja Reddy is a senior at Boston University, pursuing a Bachelor of Science in Hospitality Administration and a double minor in industry and Deaf Studies. She currently works as a student office lieutenant at the School of Hospitality Administration, and a marketing intern for Tasting Counter, Somerville. References
  • Willy, J. (1919). Hotel Pennsylvania of modern York. The Hotel Monthly, 27(321), p. 28.
  • Efficiency at Astor. (1917, September 15). Hotel World, LXXXV(11), p. 26.
  • Ismail, A. (2002). Front Office: Operations and Management. Albany, NY: Delmar
  • Dukas, P. (1960). Hotel Front Office Management and Operation. Dubuque, IA: WM.C. Brown.
  • New Yorker Hotel (1931). Front Office Manual.
  • Steadmon, C., & Kasavana, M. (1988). Managing Front Office Operations. East Lansing, MI: AH&MA.
  • Miscellaneous Hotel Notes (1913, May). The Hotel Monthly, 21(242) p. 66.
  • June 7th, 2017 in industry Practices, Hotels, Marketing, Spring 2017, Technology, Uncategorized

    The TripAdvisor Inc. application is demonstrated on an Apple Inc. iPhone for a photograph in Washington, D.C., U.S., on Friday, May 5, 2017. TripAdvisor is scheduled to released earnings figures on May 9. Photographer: Andrew Harrer/Bloomberg via Getty Images

    Photo Source: Andrew Harrer/Bloomberg via Getty Images

    By Nick Cohen

    The year is 2001, and the world is still recovering from the tragedy of September 11th.  The travel industry is in a downward spiral as fears of flying and terrorism ripple across the United States and beyond, and hotels Have lost significant occupancy due to a abate in demand.

    Simultaneously, a fledgling technology is emerging which will eventually retract edge of the internet explosion, as well as hotel management’s desperation to fill rooms. It will reshape their industry forever, and this platform now commonly referred to as Online Travel Agencies, or OTAs, will allow hotels to easily sell their rooms on the internet through modern consumer facing websites such as Expedia, Travelocity and Orbitz.

    Fast forward to 2017. The OTA’s Have gained the majority of market share for online reservations, and digital platforms relish and Have loyal member volumes that far surpass brand websites.  In many cases, the OTA companies are valued well beyond traditional hotel brands (as of May 2017, Priceline Group has a market capitalization of nearly USD 92 Billion).  They Have furthermore helped to create a modern concept as they grew in popularity and scale over the last number of years, and it was the precedent of transparency. Pricing that was once hidden to the everyday user, could now be exposed to the whole world, publicly, with a few clicks online. As OTA channels grew enormously with time, so did the access to existent time rates and availability for virtually every hotel around the world.

    With this concept in mind, from the OTA’s they Have seen the rapid expansion of ‘meta search’ channels. These are one-stop expense comparison platforms where a customer can view a expense for a single hotel play across multiple websites (without having to browse those websites one-by-one). Sites within this category include Kayak, Trivago, TripAdvisor, Qunar and Google, and they are outright working to simplify the travel research process for consumers.


    Featured above are some of the most Popular meta search channels

    With the OTA channels continuing to grow through massive marketing efforts and superior technology, and with meta search sites following their lead, a relatively modern challenge has emerged for hoteliers. It represents a very complex dynamic between one of the most traditional ways to sell a hotel room, and one of the most modern ways to sell a hotel room. This once again outright comes back to the concept of expense transparency. Wholesale has been a core industry driver in hotels for many years, helping properties build foundation industry through private negotiated rates and partnerships. Historically, these wholesalers would sell their inventory offline to their own private networks of contacts. Even though the pricing would typically be lower than publicly available RACK rates, it was a liable foundation of occupancy for hotels to build off of.

    As technology has become more sophisticated with Application Programming Interfaces (APIs) readily available, they Have seen the rapid growth of wholesale rates being sold publicly, online, through some of the powerful meta search channels mentioned above.  This means that wholesalers are selling discounted rates, which directly undercut brand websites and OTAs, to anyone who has access to the internet.  Beyond just meta search, some OTA websites are now even positioning themselves as ‘online marketplaces,’ where they too will sell wholesale inventory directly instead of the inventory provided by the hotels. To remain competitive and expand market share, online channels want to sell the lowest expense possible, even if it means reducing their own margins by selling a cheaper play to the customer.

    OTA Meta search

    Meta Search Websites such as HotelsCombined (shown above) showcase wholesale aggregator sites relish and which Have prices that undercut the brand’s direct website and other OTA channels

    You would umpire that hoteliers would want to fix this problem immediately. Online wholesale industry undercuts channels which are much more profitable such as their direct brand website.  This issue however is multi-layered and is not simple to remedy for the following key reasons:

    Hotels still want wholesale business!

    Hotels still maintain strong relationships with a number of wholesale partners, expansive and small, and they reckon on these partnerships to generate foundation business. Turning off these channels would potentially denote the loss of significant revenues, at least in the short term.  Although wholesale channels can undercut other websites when sold online, they furthermore still generate incremental industry when sold offline through the traditional method

    Finding the source of whole industry online can be very difficult

    When wholesale rates appears online, it’s generally very difficult to know which wholesaler specifically is providing that inventory. The wholesale partners themselves don’t generally sell rooms through their own websites, but sell their rates through wholesale aggregation channels such as  It’s channels relish Amoma who then sell the rates online through their own interface, and promote their rates through larger meta search intermediaries such as Trivago and TripAdvisor.  Generally the only way to find the apt source is to originate a test booking online, and then track how that reservation comes into the hotel’s central reservation system (each reservation is typically flagged with an inventory source).  Many hotels are reluctant to carry out this since a booking requires exhaust of a credit card and sometimes even pre-payment, and then cancellation of that test booking is not always simple to do. The test booking process is both cumbersome to manage at scale, and is furthermore financially risky for a hotel if those booking cannot be cancelled.

    Room bookings can be made through and other wholesale aggregator websites by anyone online. However, the back halt wholesale source for each booking from Amoma and other channels relish it can be very challenging for a hotel to identify

    Room bookings can be made through and other wholesale aggregator websites by anyone online. However, the back halt wholesale source for each booking from Amoma and other channels relish it can be very challenging for a hotel to identify.

    Employee incentives are at stake

    Within hotel sales departments, team members are still incentivized to drive wholesale volume, regardless of where that volume is being sold (offline or online). Wholesale partners generally don’t provide specifics on how they are selling their inventory, and as long as play allotments are sold, the liable sales team members are satisfied. This is creating an unavoidable rift between the direction of some sales leaders with the revenue management and digital strategy teams.

    So what’s next?

    Hotel companies are dealing with this situation in a variety of ways. Some are cutting off wholesale altogether since they simply can’t control where their inventory is ending up. Others are maintaining the partnerships, but are working to toddle away from static play allotments and over to dynamic pricing and availability where the hotels Have more control over the inventory they route to the wholesalers. This is a major problem facing the industry that very much remains unsolved.

    If they retract ourselves back to the 2001, expense transparency was a challenge for hoteliers. Properties simply didn’t Have direct access to a big enough segment of customers, therefore traditional partnerships relish wholesale was an absolute necessity. With the growth of the OTAs though, and the emergence of modern technologies such as meta search, that access is no longer an issue. The world is accessible for each hotel with a few quick key strokes on a computer. It is now only a matter of time until hoteliers originate one of the following decisions:

  • Utilize wholesalers purely as another online distribution channel, selling rates that are parity with every other website ( and OTAs)
  • Remove wholesale out of the channel amalgamate altogether, realizing that play inventory can be be sold among the host of websites and digital platforms already available
  • PDF Version Available Here

    Nick Cohen HeadshotNick Cohen is based in Hong Kong and leads digital strategy for Hyatt Hotels in Asia Pacific.  He oversees online marketing efforts for outright Hyatt brands and properties across the region, and manages a variety of e-Commerce and digital platform projects to wait on expand online revenues for the company. Prior to joining Hyatt, Nick held senior e-Commerce and digital marketing roles at Langham Hospitality Group, Mandarin Oriental Hotel Group and Sabre Hospitality Solutions.  Earlier in his career, working on-property for various hotels he developed extensive learning in operations, along with Sales & Marketing and Revenue Management expertise. Nick furthermore holds a graduate diploma in Hotel and Tourism industry Management from Boston University.   Sources:

    October 3rd, 2016 in topple 2016, History, Hotels, Restaurants, Technology, Uncategorized

    By Peter Szende and Annie Holcombe

    The evolution of society and technology has created modern trends and innovations. The hospitality industry tries to stay even with modern technological advances in order to sustain up and engage with their guests. This modernization has eliminated various practices and inventions that were once predominant in the industry.

    Throughout the 19th and 20th centuries, tourism changed dramatically due to the industrial revolution. A middle class emerged in society. This modern class had the money and occasion to spend on food and travel. Travel was made easier with the invention of steam engines that powered locomotives and automobiles. Through modernization, steam engines Have been eradicated and replaced by diesel-powered engines.

    With travel being made more accessible throughout the decades, the hospitality industry constantly evolved their practices as society and technology progressed. Hotels looked for tidings ways up service their customers, which led to the invention of the Servidor in 1918. The Servidor enhanced a guest’s privacy during their hotel stay. In Chicago, the Berghoff restaurant successfully operated on an conventional German system of coins until 1980. These once revolutionary innovations Have gone extinct, merely becoming fragments of the past.

    The Servidor – The Silent Servant

    During the early 1900’s, technological advances such as the electric fridge invented in 1910 and the creation of stainless steel in 1916 started to modernize the hospitality industry. In June 1918, the contraption known as the Servidor began emerging in hotels. The Hotel Fort Shelby of Detroit was the first hotel in the world that implemented Servidor service. (Ibbotson, p. 45).  The Servidor transformed the way hotels provided guest services by offering guests the privacy of a existent home.

    hotel cleveland Hotel Cleveland advertising Servidor Service. Source: Hotel Cleveland [Advertisement]. (1922, January). The Hotel Monthly, 30(346), 103.

    Servidors consisted of a full-length cabinet, which has one door on the play side and another one on the corridor side. Its privacy feature was the fact that the doors could not be opened at the identical time due to an interlocking device. For safety, the door to the play side could only be opened from inside the guest room, not from the outside. This protected guests from intruders. In order to notify the guests that there was a completed delivery in the door there was a silent signal device on the play side of the door. (Hastings, 1919).

    A Servidor was used to minimize interaction between guests and employees. Guests would telephone the front desk and request for items to be delivered to their rooms. Guests could furthermore leave their clothes to be pressed or shoes to be shined in the Servidor. A hotel employee would grab it and then recrudesce it without disturbing or interrupting guests.  Servidors provided a modernized, efficient system for guests to receive and deliver their personal belongings. Guests were saved the danger of bringing their parcels to and from the lobby.

    SErvidor Co Hotels highlighting minimized interaction with staff. Source: The Servidor Co. [Advertisement]. (1921, June). The Hotel World, 92(26) 4.

    This particular invention reduced inefficient practices such as delayed messengers and repeated service calls when guests were out of the room. outright of these faulty practices resulted in an ineffective exhaust of employees paid time.  Regardless of where the guests were and the time of day, Servidors allowed for a 24/7, delivery service, whether it was to the guest play or from the guest room. Employees would be able to leave guests’ belongings in the Servidor, thus making the hotel’s labor more efficient.

    The following magazine ad summarizes the anticipated advantages of Servidor. According to the Servidor company, installing their doors is a not only a service enrichment but furthermore a profitable investment.

    Source: The Servidor Co. [Advertisement]. (1922, June). Hotel Management, I(5) 237.

    When the Hotel Pennsylvania, the largest hotel in the world at the time opened its door in 1919, the Statler management, known for breakthrough innovations, equipped the hotel with servidor. They enhanced this modern feature with a morning newspapers convenience delivered discreetly through the servidor. (World’s biggest, 1919).

    Hotel Pennsylvania Source: Hastings, C. W. (1919, March) Hotel Pennsylvania, modern York. Architecture and Building. LI, Number 3. 18-24.

    The Servidor changed the way hotels provided service to its guest, but furthermore created modern problems within its hotels. One issue was that guests would request items and Have them charged to their hotel bills, but leave without having paid their bills. These guests were commonly known as skippers. In addition, because the Servidor minimized the interaction between hotel employees and guests, tipping occurred less frequently. When ensuring items were taken from and delivered to the Servidor employees did not attain in contact with the guests in order to be tipped.

    Although the Servidor was widely seen in hotel advertisements in the middle of the twentieth century, the concept soon disappeared altogether from hotel advertisements. As hotels underwent upgrades and renovations the Servidor slowly disappeared. Today, the only region in the United States where Servidors still exist is the Hotel Pennsylvania in modern York City. However, the Servidors are no longer in exhaust and Have not been for decades. The doors Have been sealed shut and are slowly being phased for modern wooden doors, eventually becoming a fragment of the hotel industry’s past.

    One of the few remaining Servidors in the Hotel Pennsylvannia. (Source: the author) One of the few remaining Servidors in the Hotel Pennsylvania. (Source: the author)

    Servers are Independent Contractors: The German System of Coins

    When the first author did his military service in the early 1980th in Hungary, he worked as a server for a night in an upscale military club where drinks could only be delivered to the guests if he paid for the drinks from his own pocket at the bar and then charged it to the customers. At that time he didn’t know too much about conventional time European restaurant cash control systems.      

    During the 1890’s Herman Berghoff, a German restaurateur began his career by selling beer from a stand outside the World’s Columbia Exposition in Chicago. He went on to open the Berghoff Café in 1898 where he sold his Berghoff Dortmunder Beer for five cents a glass and ten cents a stein. During the Prohibition era, which lasted from 1920 through 1933, Berghoff refocused his efforts from beer to making Bergo soda pops. To this day, the Berghoff Rootbeer is still popular. When the halt of the prohibition came in 1933, Berghoff became the first person to receive his liquor license, Liquor License #1 was awarded to him for his bar and Liquor License #2 was awarded to him for his restaurant. Since then, Berghoff has received the first liquor license in Chicago every year.

    Berghoff Restaurant

    Throughout the years the bar itself has gone through various changes. Originally, Berghoff’s was a men-only bar. However, during the American Feminist Movement in the 1960s through 1970s, Gloria Steinem, a celebrated women’s rights activist walked into Berghoff’s and demanded to be served. Since, then Berghoff became a men and women’s bar. She modernized the traditional way Berghoff operated. In the 1950’s and 1960’s barstools became very Popular and could soon be establish in every restaurant and bar. Until 2001, Berghoff was a stand-up bar. Stools could not be establish in the bar until 2001. Men and women would consume their sandwiches and drink their beer while standing up. To support themselves they would attach their foot on a brass rail that can be establish along the bottom of the mahogany bar.

    However, the biggest change the bar experienced occurred with modern technology in the 1980’s. Until 1980, the restaurant staff operated on the conventional German system of coins. The conventional German system of coins consisted of the waiters buying metal coins from the restaurant at the dawn of their shifts and using those coins to buy their customers’ food and beverages. In return, customers would pay for their bills using cash. At the halt of their shifts, waiters’ checks were audited and to forestall theft, they had to “zero out.” (Berghoff, p. 41) Why coins? Servers were assiduous carrying plates in one hand, so they could easily attain the coins in the pocket of their aprons. (Ledermann, 2004). Their source of income came from their cash tips. With the 1980’s bringing about modern technology, this system was soon eradicated with the modernization of computers, credit cards, and the modern automated ordering and billing systems.

    True, this system seems to Have largely disappeared but sporadic, conventional time examples indicate restaurants’ relentless efforts to secure their revenue. modern Orleans’ Café Du Monde is one example of a modern restaurant that loosely follows the German System of Coins. (First Stop in modern Orleans, 2010). Servers Have trays that they will fill with Du Monde’s celebrated beignets and chicory root coffee. After they fill their trays, the food is purchased with their cash and the waiters serve their customers with the food. After, they Have been served the customers pay the servers for their meal, therefore mimicking the German system of coins. Though the system has largely been eradicated it still influences how some businesses today are run.

    Coins (Photo Courtesy of The Berghoff) Szende Dr. Peter Szende has over 25 years of management sustain in the hospitality industry in both Europe and North America. He joined the Boston University School of Hospitality Administration as an lieutenant Professor in 2003. He was promoted to Associate Professor of the drill in 2010. Currently, he serves as Associate Dean of Academic Affairs.     Annie Annie Holcombe is a senior at Boston University’s School of Hospitality Administration. Her studies and areas of interest include sales and digital marketing, revenue management, and finance.   



    References: Berghoff, C., Ryan, N. R. & Berghoff, J. (2007). The Berghoff Family Cookbook: From Their Table to Yours, Celebrating a Century of Entertaining. Kansas City, MO: Andrews McMeel Publishing, LLC. Berghoff Restaurant History Facts [Information Sheet]. (n.d.) Chicago, IL: Berghoff Restaurant. First Stop in modern Orleans, Café Du Monde. (2010, November 15). ChefsOnTheRoad. Retrieved from Hastings, C. W. (1919, March) Hotel Pennsylvania, modern York. Architecture and Building. LI, Number 3. 18-24. Ibbotson, P. (2007). Detroit’s Historic Hotels and Restaurants. Charleston, SC: Arcadia Publishing. Mazur, A. (2016. May 23.) Personal Interview. Ledermann, R.P. (2004). Chicago’s State Street Christmas Parade. Charleston, SC: Arcadia Publishing. World’s biggest hotel opens today (1919, January 19). The modern York Times, p. 9.   Acknowledgments: The authors of this article would relish to admit the staff of the Hotel Pennsylvania who made taking pictures of the Servidor possible. The authors would furthermore relish to thank Ashley Mazur, Marketing & Media Manager of Berghoff Catering & Restaurant Group as well as Paul Turner, server at the Berghoff for their assistance.

    PDF Version Available Here

    October 3rd, 2016 in topple 2016, Restaurants, Technology, Trends

    By Christopher Muller

    What is a restaurant?

    In today’s omni-channel foodservice system what exactly does it denote to snarl something is a restaurant meal?  Does it denote a complete formal dining sustain with a chef-prepared customized meal, presented by a waiter to a guest at a table with a white tablecloth or can it be a hand-made burrito delivered by a kid on a bicycle working for a third party service directly to your front door?

    Ultimately the question comes down to determining the two main components of a restaurant, food and service. For the food the questions are: how fresh is it; what configuration is it in; and how near to immediately edible is the preparation of each meal? For the service the main question is: how much supplier labor intensity is required versus how much consumer labor intensity is necessary?

    The Evolution of configuration and Function

    Just a few decades ago the restaurant sustain was divided into only two categories, complete Service (or “white table cloth”) and Limited Service (or “counter service’) restaurants.  Both were built on the requirement that food was personally served by someone to the consumer, typically in a very structured menu format, inside a simple square meter of physical space.  The diner was expected to Have a working learning of this system: being informed of the hand crafted preparation in the kitchen by the trained chef or a skilled short-order cook; the nature of the ratiocinative rush of the courses as they were presented; and how to order and pay (including how to properly leave a tip).  For the vast majority of customers this was something done only on special occasions or when dining away from home, and could be too intimidating to master.

    Then in the mid-1950’s came a modern upstart, the Fast-Food or Quick Service Restaurant, which by being systems based and not chef driven created a modern approach to how consumers viewed the dining experience.  In a disruption of tradition, both the composition and order of the meal (“…if I want to consume my fries before my burger, who cares?”) and the concept of self service (“…no waiter, no tipping, I’ll gladly transparent my own table”) were controlled by the consumer, not the supplier.  Much of the food was prepared in an off-site facility and assembled to order or batch cooked by semi-skilled kitchen workers. Once the drive-thru window came into play, the need to even ensnare out of the car for a meal disappeared (“…is my front seat a restaurant?”).  Anyone could exhaust this system at any time during the day. While the QSRs were not originally considered “real” restaurants, dining out became an simple and every day option.

    During the 1990’s the market saw the explosion of the Casual Theme restaurant which took outright of the formality out of Fine Dining, including the white table cloth, and significantly sped up the dining process. Table service was still an integral allotment of the sustain but with less personal connection to the waiter as food was often delivered by a runner directly from the kitchen. Standardized meal choices were assembled on-site by slightly more skilled journeymen led by a kitchen manager instead of a chef, who used a mass customization process to match the individual desires of the consumer.

    In the last decade the swiftly Casual restaurant came to the attention of the consumer public. This modern hybrid is a amalgamate of the self-service from swiftly food with the consumer selection options presented by a traditional cafeteria system.  Table service is replaced by a modified multi-phase counter service with customers being given more customizable options, whether by a barista or a burrito-maker.  This customization is made practicable with the recrudesce of an on-site short-order cook who assembles to order food which has the appearance of being hand-crafted, but is prepared in a batch style and often brought in from an off-site commissary.

    This brings us up to date where they are witnessing an explosion of segments and dining choice. Today they contemplate a marketplace of narrow segments (Casual Elegance, Food Trucks, Grab & Go, Build Your Own, GastroPub, Convenience Store, Market Hall, Delivery) and other fine grained niches that front simple categorization.  For example, Panera Bread is a leader in the swiftly casual segment while filling the role of the top retail bakery/café offer. But it furthermore leads in the technology of smartphone based customized take-out.  The top of the food chain for fine dining is at one and the identical time a luminary chef-driven stratospheric offering such as Keller’s French Laundry or a standardized, national prime aged steakhouse chain relish Del Frisco.  For the dining public, what exactly does Casual elegance denote except that there are no tablecloths, there is a wine list and expensive cocktails, no chef and the wait staff wear logos on their shirts? What really is the disagreement if I buy a packaged turkey sandwich at a Pret a Manger, at a 7 Eleven, or at a Whole Foods?

    Where Are They Heading?

    So, the retort to the question “what is a restaurant?” can really only be answered with “it depends.”  What does it depend on- mainly how the dining public continues to redefine how, when, why, where and what a meal actually is?  Is a smart phone a modern day vending machine? Is a communal table in a market hall a dining room? Is a “sous vide” pouch heated by a chef in a two-star restaurant a freshly prepared dinner? Is Chef Chang’s Ando really a restaurant or just a conceptual kitchen? Are Just Eat, Grub Hub, Deliveroo, Uber Eats and Amazon Prime just waiters expanding the last square meter of personal restaurant service? The answers are probably outright yes.

    When someone wants to eat, it might be better to examine “what isn’t a restaurant?”

    A Restaurant Taxonomy for 2017 A Restaurant Taxonomy for 2017 If I Bring It Home To Reheat For Dinner Tomorrow, Is It A Restaurant Meal? Photo Source: Olive Garden If I Bring It Home To Reheat For Dinner Tomorrow, Is It A Restaurant Meal?

    Photo Source: Olive Garden

    Is Eataly a restaurant or a market?Source: Creative Commons / Mary Crosse Is Eataly a restaurant or a market?

    Source: Creative Commons / Mary Crosse

    What Does It denote If My Pizza Restaurant Is On My iPhone? Photo Source: Pizza Hut Mobile App Screenshot What Does It denote If My Pizza Restaurant Is On My iPhone?

    Photo Source: Pizza Hut Mobile App Screenshot

    If I Pick Lunch Up In 10 Minutes And consume In My Office Is It A Restaurant Meal?Photo Source: Panera Bread Mobile App Screenshot If I Pick Lunch Up In 10 Minutes And consume In My Office Is It A Restaurant Meal?

    Photo Source: Panera Bread Mobile App Screenshot

    How About Dinner Arriving Via UberEats in 3 Minutes To My Front Door? Photo Source: Uber How About Dinner Arriving Via UberEats in 3 Minutes To My Front Door?

    Photo Source: Uber

    Is It Really A Restaurant, Chef Chang? Is It Really A Restaurant, Chef Chang? chris-muller-423x636Christopher C. Muller is Professor of the drill of Hospitality Administration and former Dean of the School of Hospitality Administration at Boston University. Each year, he moderates the European Food Service Summit, a major conference for restaurant and supply executives. He holds a bachelor’s degree in political science from Hobart College and two graduate degrees from Cornell University, including a Ph.D. in hospitality administration. Email

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    January 15th, 2016 in Hotels, Marketing, Restaurants, Technology, Winter 2016

    By Leora Halpern Lanz

    It’s challenging to be a hotel market today, let solitary one who needs to understand and masterfully manage digital marketing for one or more properties. How carry out the hotel marketer and revenue manager ride the endless wave of online travel agency (OTA) distribution, commission structures, and rate parity? How much should a hotel budget for key word searches, Google Ad Sense, and Facebook ads? When carry out they determine to “turn on” or “shut off” the search engine marketing campaign? Who is the voice of their product and services on social media? How effectively is that voice engaging with guests, ultimately resulting in effectual customer relationship management (CRM) and brand advocacy? Is the website sufficiently optimized to yield an actual cyber network of digital visibility, online presence, and distribution channels? How much does it cost to acquire a modern guest and how carry out they embolden this modern guest to bespeak directly through a brand’s website?

    As Sean McCracken, Hotel tidings Now editor, wrote in his December 22, 2015 piece, Digital Marketers Deal With Shifting Landscape, digital marketers in the hotel industry are working to drive bookings among a changing climate for OTA’s, guest expectations, and advertising. Attempting to demystify the confusing arena that is digital marketing for hospitality is challenging. Is it productive to learn by trial and error?

    Here are a few pertinent strategies to account when trying to find a region in the digital marketing landscape:

    A Hotel Website Connects to Cyber Network: Link and Hyperlink

    Websites are dynamic vehicles. In addition to being an attractive and interactive dashboard, a site should be continuously updated and optimized for searchability to be truly functional. pile a website with no objective of continuous enhancement is indigent planning; pile it properly and keeping the content fresh will support a strong online presence.

    1. account reducing text and adding more visuals, images, videos and opportunities for viewers to remark or examine questions.

    2. account how someone would search to potentially find you when writing site copy.

    3. Create strategic links from the website to a brand’s social channels and industry partner’s.

    “It’s not enough to Have a beautifully designed website anymore,” says Sara O’Brien, Associate Director of Marketing at HeBS Digital, “The technology behind it is what will allow you to generate more bookings and tryst from visitors. Responsive / Adaptive design for the mobile, tablet, laptop and desktop screens is a must, along with the skill to personalize content based on the visitor, entice visitors to return, complete the booking, and more. This type of technology is affordable and accessible, even for independent properties without big budgets.”

    Photo by Viktor Hanacek A suited website is more than just aesthetics – it considers how users will find the information they need and how they will potentially search for the site.  (Photo by Viktor Hanacek)

    Responsive websites duty properly on a variety of devices – tablet, mobile, desktop, laptop – and they are more critical than ever. Even four years ago, author Sam Laird shared that more than 65% of people who bespeak a hotel play within 24 hours of checking in carry out so from a mobile device ( According to Expedia, more than 15% of travelers who bespeak a flight 24 hours or less in further furthermore carry out so via mobile device. Hotels with ratings between two and three stars are most commonly reserved via mobile devices, indicating that they are likely the best (or most available) last-minute lodging option. Smart phones Have given modern power to the harried, last-minute traveler and the companies with the applications that are simple to access and instinctive to exhaust are most likely to attract these customers.

    Search Engine Marketing and Search Engine Optimization Assessment: Understanding Key Words, Google, and Facebook Marketing

    Search engine marketing (SEM), the process of maximizing the number of visitors to a particular website by ensuring that the site appears tall on the list of results returned by a search engine, is imperative to expand web traffic and social media news. Successful navigation of key word auctions can best be achieved with the aid of digital agencies that understand the nuances of purchasing search terms in recrudesce for higher search engine rankings. Another less expensive strategy that can be extremely effectual is the exhaust of Long Tail Keywords, specific phrases that touch upon a variety of customer needs. A phrase such as, “midtown Manhattan hotel consummate for social event and with ample parking” may expose precisely the birthright search results to expand a specific customer’s likelihood of purchase. Branded terms that directly related to a particular product or service are furthermore effectual search engine marketing tools. Such terms, for example, “Inn at Fox Hollow, Long Island, NY” must be purchased requiring a larger marketing budget.

    Paid Advertising

    It is distinguished to budget for paid ads because relying on organic posts is just not enough in today’s world of information overload and marketing clutter. Marketers need to understand the unique advertising sales system for each platform. For example, Twitter ad sales are often based on tryst rates as opposed to Facebook where one can pay per impression. It is extremely profitable to work with experts who can optimize user data to target specific content to the birthright audience, and determine which content would perform best with paid support.

    Both Facebook and Twitter advertising allow for targeting users based on demographic and psychographic data. Both platforms furthermore present Promoted Posts as a way of boosting a post to modern or existing fans. These posts may consist of imagery, stories, or testimonials. Facebook’s Carousel ads can appeal to multiple markets as a rotating gallery is embedded into each ad. Additionally, Facebook’s Remarketing Ad option uses “cookie” tracking to identify audiences that may Have already visited the site, thus Have shown interest in the brand.

    Facebook's Carousel ad option Facebook’s Carousel ad option gives the brand space for multiple photos as seen above. (Image via Facebook Advertising) Geo-Targeting an Ad

    Geo-targeting advertising is particularly useful for local or neighborhood food and beverage establishments as it allows a industry to attain existing and prospective customers by radius, geographic zip code, or specific location. It is always distinguished to communicate and engage with your “internal” audience and local community as they can be your brand affiliates, spreading the word to their networks. Geo-targeting can be added to most social and digital ads.

    Twitter and Facebook provide particular advertising analytics, but Google Analytics is a useful tool to track website activity in conjunction with an ad campaign. Social media ads paired with the purchase of Google’s Keywords, Ad Words, and Pay Per Click (PPC) ads provide an occasion to boost a website to the top of germane search rankings.

    No matter what type of paid advertising channel is used, marketers must set measurement goals for paid posts. Doing so gives them the skill to monitor performance at different stages of the campaign, and select if the ad should be adjusted, taken down, or has “done it all”.

    Social Media Presence: Regram and Hashtag

    Hashtag (noun \ hash·tag \ˈhash-ˌtag): a word or phrase preceded by the symbol # that classifies or categorizes the accompanying text (such as a tweet)

    Effective branding and marketing in the 21st century demands social presence and two-way conversation. Specifically, social media marketing requires the combination of manpower, time, and expertise in proper social media decomrum while utilizing branding, engagement, and relationship management (CRM) tools. Successful social presence is achieved by using existing data to create specific, targeted content based on the intended audience and the purpose of a specific social channel.

    Marriott Hotels strategically uses both short video and inspirational text to capture its audience on Instagram. Additionally, they exhaust a crusade hashtag, #TravelBrilliantly, to enhance the contents searchability and messaging.

    Social media marketing can be a cost-effective and efficient system to interact with existing and prospective customers. A hashtag symbol that precedes a word or phrase classifies the text to be easily searched on social media (such as with Twitter). Properly using hashtags helps a brand start a conversation with consumers and identifies who is already talking about them. Brands should regularly search for and exhaust hashtags with a brand-name and category keywords. For example a local Boston restaurant could exhaust its name, #TellersIslip and #LongIslandRestaurants, in Instagram posts. Instagram users often post photos of their meals followed by captions reviewing their sustain at the restaurant,, and include a hashtag with the brand name , and relatable keywords (e.g.#BestMealEver!). These searchable posts attain to serve as reviews for a brand.

    Regramming: It is suited practice, upon finding an Instagram fan who has posted a mighty image with a rave review, to examine for leave to “regram” the photo on the hotel or restaurant account. Mobile apps relish or Repost are specifically designed for ease of “regramming” and properly crediting the original photographer. examine the original photographer for leave to share the photo as a way of initiating engagement, trust, and loyalty. (Image via #Tremont647 Instagram results)

    Regramming: It is suited practice, upon finding an Instagram fan who has posted a mighty image with a rave review, to examine for leave to “regram” the photo on the hotel or restaurant account. Mobile apps relish or Repost are specifically designed for ease of “regramming” and properly crediting the original photographer. examine the original photographer for leave to share the photo as a way of initiating engagement, trust, and loyalty. (Image via #TellersIslip Instagram results)

    In addition to Instagram, visually-focused tools relish Pinterest and YouTube can powerfully convey a message and brand through strong imagery. Pinterest uses virtual bulletin boards for brands and users to showcase and categorize images of everything from places to products. Hospitality brands can exhaust these platforms to highlight amenities that are best shared visually. In determining which platforms to exhaust and how to exhaust them, it is vital to research the primary audience that uses each platform. For example, Facebook is most used by audiences ages 29-40; Twitter is used by those 18-29 years old. With the requisite demographics in mind, brands can be more effectual in selecting proper photography, imagery, and copy to capture the attention of the targeted markets.

    Managing and Monitoring Social Media

    There are dozens of programs available to wait on manage and monitor social accounts such as Hootsuite and Buffer. These programs can organize each social account (Facebook, Twitter, etc.) and stream information based on inescapable criteria. For example, in Hootsuite, a stream can be set-up just to expose Tweets in which a particular brand is mentioned. Another could be established to expose only Instagram posts that exhaust a specific crusade hashtag, such as Marriott’s #TravelBrilliantly. Most notably, the platform allows for posts to be pre-scheduled, creating continuity of messaging on various social sites. After content is posted, analysis and data features enable marketers to assess which posts are most effectual or need to be changed.

    LMA Communications founder Larry Mogelonsky contends that marketing will eventually be “limited to infographics, photos and videos.” (, 12/2015). Every action will be built around mobile devices. There will be scant text and descriptions on websites. Infographics will be used to account for and provide most technical information. This prediction into the future of content reminds marketers to sustain content visual, meaningful, and tight.

    Online Review Sites

    Consumers reckon heavily on the reviews from others in their online communities. Consequently, brand-presence on a user generated content (UGC) site relish TripAdvisor and Yelp is extremely important. In as such asAs customers who post reviews Have the potential to be brand advocates, there is an ever-growing need to learn how to properly engage with online reviews and comments. Replying to positive reviews and addressing complaints or critical comments transmits a tone of trust to a UGC community. According to industry expert and Rouse Media president Glenn Haussman, the impact of a customer rating three stars versus four stars on Yelp or TripAdvisor can be a significant impact to a restaurant’s bottom line.

    Some hotel companies hire firms to monitor online brand reputation and respond to customer inquiries, guest comments and create guest surveys. Providing particular analytics, vendors such as ReviewPro can wait on hoteliers prioritize operations and service enhancements to deliver more memorable guest experiences. These companies can create complete assessments of guest feedback, enabling organizations to ameliorate rankings on TripAdvisor and OTA’s with the goal of boosting revenues and differentiating from their competitors.

    The Langham Hotel in Boston, Mass. regularly responds to both compliments and concerns from its guests on Trip Advisor. The Langham Hotel in Boston, Mass. regularly responds to both compliments and concerns from its guests on Trip Advisor. E-Mail Marketing

    E-mail continues to provide a successful tactic to attain modern customers and reinforce relationships with current customers. Travel intelligence platforms, such as Adara, Have access to loyalty program data, historical purchase patterns and other significant information that can aid in pile strong customer profiles. With guest data, special offers through targeted emails can be personalized to attain definite audiences – not due to specific purchases, but rather based on buying habits made over time. When customers receive emails that are designed especially for them, and in ways in which they interact with the hotel or restaurant, it can enhance the likelihood of repeat business. effectual email campaigns, with the wait on of firms relish Revinate, can boost the rate at which customers open targeted emails, click-though to a company’s on-line present and hopefully metamorphose (book) the business.

    So Much More to Learn

    There are many lessons to learn from this tip of the iceberg Look at digital marketing. The following are immediate take-aways:

    1. Technology changes so rapidly, it is distinguished to continually learn.

    2. It’s distinguished to work collaboratively. Hospitality marketers must surround themselves with vendors and partners who are equally pushing for mutual success

    3. Remain collected and confident, willing to experiment and modify when necessary. When decisions or tactics don’t seem effectual or yield results, it is perfectly acceptable to change paths. Just give modern channels some time to work.

    4. The choices and options for marketing are overwhelming – carry out not attempt to exhaust every channel and spread yourself and the brand too thin. Select a few arrogate marketing or social media channels. carry out not attempt to exhaust every channel because that will spread human resources and pecuniary resources, as well as the brand itself.

    5. attain out for professional expertise along the way. examine colleagues to share best practices for a robust exchange of ideas and solutions.

    6. effectual marketing solitary is not enough. Product quality, service, sustain and the investment of manpower, time, and/or capital will always be necessary to maintain quality, guest satisfaction, and long term success.

    [1] Sean McKutchen. (2015, December 22). Digital Marketers Deal With Shifting Landscape, Hotel tidings Network. Lanz modern 2016Leora Halpern Lanz is the president of LHL Communications, a hospitality content marketing, branding and media relations advisory firm. LHL clients include hotels, hospitality investment conferences, leisure products, hotel management companies as well as other industry related services. Previously, for 15 years Leora served as global director of marketing and head of the marketing drill for hospitality consulting giant HVS. Prior to HVS, she  served for 10 years as director of public relations and advertising for ITT Sheraton Hotels of modern York and for 5 years as director of public relations for the Greater Boston Convention &Visitors Bureau. She is currently furthermore a full-time lecturer at Boston University’s School of Hospitality Administration.

    Tagged digital marketing, E-commerce, Hotel Marketing, social media

    January 8th, 2016 in industry Practices, Restaurants, Technology, Winter 2016

    Will technology disruption in the back-of-house enhance

    Is the next innovative disruption going to be establish in the back-of-house?

    by Makaela Reinke

    Opening the door to the highly acclaimed fine-dining restaurant Eastern Standard is akin to drawing back the curtain of a Broadway musical: the lights are dimmed, the music starts, and your attention is captivated by the elegant set before you. Your spirit is soothed by the muted ruby reds and royal purples that greet you, and deep shadows cast by glamorous chandeliers further cancel the memories of a tiring day. The long, granite-topped bar harkens back to days of elegance, while the modern, stunning hosts, servers, and sommeliers are experts in their performance as cast and crew guiding you through a truly sensual experience. The meal is an indulgence to your taste buds, the wine an illumination to your tongue, and the entire sustain restorative to the soul. You leave the restaurant reluctantly as the candles burn low, already planning your return.

    Like many of the finer things in life, such as a classic car, an Old-Master painting, or a poignant jazz performance, the fine dining sustain has changed dinky in the past century. A inescapable degree of expectation accompanies one’s conception of “fine dining,” and this expectation differentiates fine dining from merely “going out for dinner.” This expectation does not merely include food character or preparation; it does not require a specific setting or menu, wine list or top-shelf bottle of Scotch. Rather, the expectation is more an overall character of experience, and interestingly enough, it is the patent unchanging nature of both “fine dining” and “eating out” that is noteworthy and puzzling. Eating out looks much relish it always has, even amidst today’s storms of disruptive and breakthrough models. How is it that while so much of their world changes, the industry of eating has essentially stayed the same? Has the restaurant industry been affected by disruptive models at all?

    Disruption capitalizes on improving the efficiency of existing systems as seen with the success in other branches of the hospitality industry: transportation (Uber) and lodging (Airbnb). Uber and Airbnb Have achieved remarkable success because their systems capitalize on independence and convenience for the traveler. In both models the customer does not need to reckon on a system operated by another party (hotels, hostels, taxis, etc.) but instead can be the captains of their own destiny by calling their Uber and booking their dream stay without third-party fees. Even more conveniently, these innovative models are utilized through the exhaust of smart technology and online interactions. The restaurant, however, cannot exist online, and the successful restaurant is as much experiential as it is product-based. Any adaptation of the restaurant model (pre-ordering, tablets on tables, etc.) Have not lasted very long as they tarnish the very essence of a dining experience. A apt meal in any self-respecting restaurant is tech-free, engaging, authentic, and sensory.

    This leaves quite the challenge for any entrepreneur looking to insert innovative, disruptive models into the restaurant world without tainting the sanctity of the experience. The reality, however, is that perhaps the front-of-house model does not need innovation. Instead, it may be the back-of-house that could profit from some disruptive thinking. Eli Feldman, a 2001 SHA alum, recognized this early on. A former restaurateur himself, Eli is very chummy with the operations and service philosophy that restaurants hold so dear. This however, is what gave him the opinion for his start-up platform, Clothbound.

    Clothbound is an online platform that connects potential employees with restaurants. Similar to, it provides a convenient, simple job board specifically for the restaurant industry. Finding reliable, talented staff takes up more time and pains than most employers would relish to admit. With a current nation-wide turnover rate for 66% (according to the U.S. Labor Department) this time and pains amounts to an gargantuan monetary and time cost for restaurants that need to re-hire over half of their staff each year, essentially causing a bottle-neck in the employment process and productivity. Clothbound looks to lower this rate by helping employers find potential staff by searching ‘tags’ of skill sets, personality traits, and employment history allowing them to filter through candidates more easily. In short, Clothbound is innovating the current human resource model for restaurants. Throughout outright of this process however, Eli and his team Have continued to recognize the consequence of the human component of the restaurant industry. Clothbound does not supersede a human’s job. It connects the birthright person to the birthright job so that they can wait on the restaurant become more efficient in providing a personal sustain to the customer.


    The userprofile on Clothbound makes it simple for employers and job-seekers to find each other based on skills and interests. Image via Clothbound.

    Restaurants thrive because of their human component. They are vital art, culinary museums that only exist when people provide a product through thoughtful service. This is why other ‘disruptive’ technologies Have not seen success in the market: they try to remove the human component through the exhaust of iPads at tables or ordering kiosks. But these sorts of models will only achieve initial success in fast-casual settings when the customer is looking to receive food quickly. For those looking for the undoubted dining experience, technology will not interfere with that any time soon. Clothbound’s model though, which disrupts the system behind the scenes, is dawn to originate its mark. Zagat most recently recognized Kelly Daigle, co-founder of Clothbound, in their 30 under 30 list of Boston’s finest, acknowledging her innovative thinking and impact on the market. Clothbound’s technological platform is bringing the restaurant network to a digital space, effectively bringing together the two networks of employers and their potential staff.


    Using Clothbound’s tagging system, Eastern Standard can strategically post openings on the modern platform. Image via Clothbound.

    This means that restaurants can now become more selective in admiration to their hiring practices. With access to more qualified staff who will furthermore be a better meet in the company, restaurants will contemplate additional benefits emerge over time: devoted staff, higher levels of customer service, higher restaurant reviews, and lower turnover rates, which expand the bottom line. The employment process now becomes more sustainable as labor costs abate and the staff become more efficient, eventually reaching a higher even of service. These employees, already a ‘best fit’ for the company, are more likely to receive promotions and positions within the company. Now they Have the introduction of a skilled workforce in this hospitality sector, many of whom are already graduates with hospitality degrees.

    Danny Meyer, CEO of the Union Square Hospitality Group and modern York City restaurant Entrepreneur recognizes this shift in the service industry. He has just recently attach outright of his servers onto salary, announcing that no allotment of them will accept tips. To him, their expertise deserves not only a higher vital wage but furthermore secure full-time employment. “There’s not a more distinguished stakeholder to ensnare birthright than their staff” he said in an interview with modern York Eater. By poignant his staff to salary positions, Meyer is recognizing his staff as a skilled workforce with his own disruptive behind-the-scenes model. This has introduced sweltering debate over sustainable industry production and increased minimum wage, neither of which will disappear any time soon. The issue of inadequate wages for these over-qualified employees is gaining attention, which in itself may give momentum to another disruptive movement as employees require a vital wage for their top-quality service. But with a revenue expand of 4.2% in the fine-dining industry in the past year, supporting skilled workers has become vitally distinguished as restaurants compete to become the best of their markets.

    Danny Meyer, CEO of Union Square Hospitality Group is causing a shift in the restaurant industry by doing away with tipping in recrudesce for higher salaries.

    Danny Meyer, CEO of Union Square Hospitality Group is causing a shift in the restaurant industry by doing away with tipping in recrudesce for higher salaries. (Photo via Wiki/Financial Times)

    And as restaurants bring in more qualified staff to their businesses, there is the incandescent domino-effect that now provides an occasion to re-approach the culture of each restaurant. Restaurants are now taking a proactive approach to fostering modern work culture for the staff they Have brought to the company. Many restaurants are now implementing learning programs: bartending classes, wine service seminars, increased menu comprehension. In hiring the ‘right people’ for the job, the company is furthermore taking liberties to nurture the ‘right culture’ for a restaurant to create an atmosphere that encourages server participation, teamwork, and internal promotions.

    The result of this back-door disruption is due mostly to consumers. Consumers want to sustain memorable service. As restaurants toddle to meet these expectations they must in turn provide service that is liable and organic. And here they contemplate the occasion for restaurants to innovate their former systems of recruiting, hiring, training, and retention of staff in the company. This is a vulnerable turning point for the industry as it takes edge of this time to re-define what it means to work in food service. Chefs are dawn to receive more recognition, servers are attach on salaries, and hospitality and industry degrees are prerequisites for entry-level positions. The outcome is a highly efficient workplace with a skilled workforce that wants to be in the restaurant doing what they carry out best. Restaurants are taking better care of their employees outright because of consumers who require higher character of service, which allows restaurants to become more selective of their team. This is already present in other branches of the hospitality industry: Disney is known for its positive, ‘can-do’ cast, and Ritz-Carlton for its elite professionalism among even the hourly employees. character restaurants are looking to link their ranks; introducing new, disruptive service models has simply taken its time. Innovation and disruption of the restaurant industry must befall slowly and cautiously. Any restaurateur worth his breadsticks will protect his space. However, he will furthermore Look for creative ways to Cut costs and expand the service value. And while the tradition of food service may not change within the next decade or so, it is transparent that modern models of employment are dawn to Have a presence in the industry.


    As consumers expect higher character of service, restaurants can be more selective in their hiring and build innovative industry models. (Photo by J. Annie Wang)

    In this they contemplate the undeniable relation between disruption, innovation, and culture. Creative disruption has provided space for innovation which now leads to a new, exciting work culture that will appeal to both sides of the employment relationship. If outright goes well this means the next time you disappear out to eat, Look for the behind-the-scenes disruption models not in the food you eat, but in those who bring you the food. Work culture will bleed into the performance of the front-of-house service, drawing guests to consume out again and again. Restaurants, if they capitalize on these innovative models, will contemplate success as they impress their audience with their artistic expression of the traditional dining sustain that will surely deserve a standing ovation.

    ReinkeMakaela Reinke is a student at the School of Hospitality Administration, class of 2016. Having worked at both small cafes and larger restaurants, she is excited about where the industry is going. As apt Bostonian at heart, she enjoys exploring the city one restaurant at a time. 

    Tagged Clothbound, Danny Meyers, Eli Feldman, restaurants, Union Square Hospitality Group

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    PEOPLECERT [4 Certification Exam(s) ]
    PMI [15 Certification Exam(s) ]
    Polycom [2 Certification Exam(s) ]
    PostgreSQL-CE [1 Certification Exam(s) ]
    Prince2 [6 Certification Exam(s) ]
    PRMIA [1 Certification Exam(s) ]
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    Trainers [3 Certification Exam(s) ]
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    Wonderlic [2 Certification Exam(s) ]
    Worldatwork [2 Certification Exam(s) ]
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