Human resource management issues appear to be the most troubling problem for the lodging industry.  A recent study determined that certain problems seem to be common in the industry’s leaders ability to manage effectively.  Sixty-four percent of participants from regions worldwide acknowledged that the largest areas of concern were attracting, retaining and training of human resources personnel.  Morale was also a key issue.

Most challenging appears to be finding the time to train employees, which seems to be impeded by competitive pressures.  General managers show concern with attracting talented human resources personnel, while retaining quality people is the major concern of executives.  Morale is a key issue for concern by all respondents.  Consistency in quality and training are an equal concern to both executives and general managers alike.  This study was conducted in cooperation with the Center for Hospitality Research at Cornell University.

Recent meetings at the White House, Treasury Department & Fed’s office have been constructive since the Obama administration began.  Before any more bailout’s can be distributed, the government realizes it needs a better understanding of the financial system.

Jeffrey DeBoer who is president & CEO of The Real Estate Roundtable stated at the American Resort Development Association convention that getting commercial real estate lending going again is top priority.  He believes that commercial properties will experience increased foreclosures as we have seen in the residential market.

Two facilities may offer a solution to this problem.  TALF (Term Asset Lending Facility) has been compared to a giant credit card, and offers attractive financing to investors and private equity groups.

The PPIF or Public-Private Investment Fund organized by the government is a program put together by the government that will use private capital along with public money.  The main task is to re-secure or refinance existing loans and new transactions, which will require a large amount of equity.  This will help regain investor confidence.

DeBoer stated that the current policy-making process contains dialogue that is very constructive towards relieving the downturn of the US.  Roger Dow, president & CEO of The US Travel Association, stated that President Obama, who recently met with them about the state of the vacation industry, left them feeling that he knows where the challenges exist.  During the President’s visits overseas, he has a huge opportunity to pitch American to the world.  He will keep the pressure on to help improve tourism in the US.

As revealed in the most recent travelhorizons (TM) survey, travel in America remains popular.  In fact, almost two thirds (63%) of adults in the U.S. are planning to take at least one overnight trip in the next 6 months for leisure enjoyment.  Of course, the higher the household income, the higher the incidence of leisure travel.  Also indicated is that 1 of 6 adults will make an overnight business trip in the next 6 months.

It appears that the number of adults who are traveling is not declining so much, but the travel behavior is changing.  In a questionnaire posed to respondents, here are some of the actions people are taking to reduce travel expense.

1.  87% say they will purchase a travel package to save money

2.  84% expect to spend less money overall

3.  64% will comparison shop online.  It is no surprise that the internet is becoming more and more popular for finding the best deals

4.  64% say they will take more frequent day trips

5.  51% will stay fewer nights to reduce costs

It is apparent that when travelers reduce the number of nights they stay, it will have a huge impact on lodging, cruise and attraction industries.

These statistics make it clear what needs to be done in future marketing and communications of these industries.  The focus should be less on getting people to take trips and more on persuading them to extend their stay.

These days, it seems that everyone is too busy (or maybe too automated) to deliver real customer service to our customers and clients.  Everyone knows that delivering that “little extra” or personal touch when it comes to customer service will make our business a winner, but still we don’t take the time to do it.

Current economic conditions are calling for cost reduction and cut backs in many businesses, but it seems that customer service is often the area where these reductions are made.  Will this lack of attention to customers have a long-term effect on how our business is regarded in the eyes of our customers?  Absolutely!  Today’s markets are overcrowded, so clients and customers have a wide range of choices - and may choose to do business with a company who offers superb personal care for their clients.

Even in this economic climate, companies like Zappo’s are thriving.  Why is this?  Every aspect of their business relates directly to excellence in the customers’ experience.  Developing personal, emotional connections with customers through popular networking tools like Twitter and Facebook makes the customers’ experience an unforgettable one.

Organizations that are successful know that you must engage people, employees, partners and customers.  Why is this so difficult for many companies?  There is a gap between “knowing” that you should implement great customer service and “doing” it.  It seems that there is plenty of talk, but very little action when it comes to personalized customer service.

Is there a set plan when it comes to improving your customer relations?  Not really.  By listening to what your customers want and responding to their requests, you can train your staff and employees to respond according to that customers needs.  When your people change, your organization will experience real change as well.

The economy seems to be affecting everyone.  Walt Disney Company acknowledged that in the last six weeks, 1,900 jobs have been slashed, most of them in Florida.  In Florida alone, 900 layoffs occurred and 500 vacant jobs will go unfilled.

Disneyland in Anaheim, California also suffered, with 200 layoffs and 100 unfilled positions.  The company stated that it has been affected by the recession, and has had to offer huge discounts to keep attendance up.  Disney began downsizing on February 18th.

According to the company, most of the layoffs pertain to management, executive and administrative positions.  Before the layoffs and buyouts, Disney claimed to have about 62,000 local employees.

For weeks, Disney refrained from revealing the total number of layoffs as it spread across the entire operation.  Some departments affected included entertainment, transportation, finance and human resources.

Disney did not notify the state about the layoffs, which is against a federal law known as the Worker Adjustment Retraining Notification Act (WARN).  The company stated that it was not required to give a notice because the cuts involved multiple sites, and that their company is not a single-site operation.

There are exemptions to the single-site rule outlined by the U.S. Department of Labor regarding notice, but there seem to be differences of opinion regarding this matter.  The Labor Department states that the single-site definition is not to be used for the single purpose of evading WARN notices.

So far, it appears that most of the layoffs have affected more salaried than hourly employees.  These employees received severance packages with benefits for a 60 day period.  Union representatives said they will oppose any efforts to cut remaining employees hours.

The world-famous Greenbrier Resort in White Sulphur Springs, WV - a 6,500 acre four-star resort founded in 1778, a past stop of US presidents and royalty, and locaton of a once-secret Cold War era nuclear bunker for Congress - has become another victim of the economy. The resort filed for Chapter 11 bankruptcy in mid-March, in the US Bankruptcy Court for the Eastern District of Virginia, located in Richmond.

Greenbrier is owned by the Greenbrier Hotel Corporation (GHC). GHC is a wholly owned subsidiary of The Greenbrier Resort and Management Corporation, which is wholly owned by CSX Corporation. According to bankruptcy documents, CSX, a railroad company based in Jacksonville, Fla., shut down an internal cash fund for the resort last December, just as the economy had started to nose-dive. CSX has owned the Greenbrier since 1910.

The Greenbrier has been losing money for the past five years, and had debts to CSX of $91 million. With costly renovations and accelerating losses, CSX insisted that Greenbrier file for bankrtupcy.

Along with the bankruptcy announcement, Greenbrier said that hotel operator Marriott International of Bethesda, MD was willing to buy the Greenbrier for up to $130 million, pending court approval, new labor contracts with potentially 9 unions representing over 900 employees, and a court-supervised auction process to allow other qualified buyers to have an opportunity to bid on the Greenbrier.

If no new labor deal is reached, the Greenbrier could eventually be forced to liquidate.

The glut of hotel rooms in Las Vegas has led to “some screaming deals out there to go to Vegas,” according to Orbitz Worldwide Inc. Chief Executive Officer Barney Harford. “There’s been a lot of construction activity in terms of building out new hotels,” Mr. Hartford continued. “That was happening in the run-up to this tough economic environment, so capacity was moving in one direction and then as demand started to go downwards, you really felt a challenge.”

Las Vegas added about 8,000 hotel rooms in 2008, bringing the total to 140,000. With two major casino/resorts expected to open this year, that number will only increase. Other Las Vegas Strip developers have suspended construction on four projects that would have added an additional 6,900 rooms and condos.

According to Rossi Ralenkotter, chief executive office of the Las Vegas Convention & Visitors Authority, visits to Las Vegas are expected to decline 3 percent to 4 percent this year.  Airline flight capacity in to Las Vegas remains almost 15 percent less than a year ago, Mr. Ralenkotter said. At the same time, Las Vegas developers have been preparing to open more than 13,000 new hotel rooms in 2009.

Gambling revenue at Las Vegas Strip casinos dropped 15 percent in January, and 19 percent in Atlantic city in February as the recession tightened its group on consumer travel and gambling spending.

Mr. Hartford said ““People are really trading up to four-star and five-star properties, because the folks are going to go down for a long weekend or something, and they can afford to do that at the current rates.”

In a Corporate Responsibility report, available here, the Walt Disney Company has announced long- and near-term environmental goals for its extensive network of theme parks, media outlets, resorts, studios, consumer products, and cruise and travel tours.

The report, released March 9, identifies seven long-term environmental goals:

• Zero waste.
• Zero net direct greenhouse gas emissions from fuels.
• Reduce indirect greenhouse gas emissions from electricity consumption.
• Net positive impact on ecosystems.
• Minimize water use.
• Minimize product footprint.
• Inform, empower and activate positive action for the environment.

Near-term goals (next 3-5 years) include:

• Cutting direct emissions from fuels in half by 2012 through reductions, efficiencies and offsets. The report said direct GHG emissions from fuel combustion and refrigerant leaks amounted to 566,042 metric tons CO2eq in 2006.
• Reducing energy consumption by 10 percent by 2013 compared to a 2006 baseline, which the report placed at 2,006 million kilowatt hours.
• Decreasing the solid waste sent to landfill by 50 percent by 2013 compared to a 2006 baseline level. The company’s parks and resorts segment, for example, generated 298,000 tons of solid waste in 2006, diverted 128,000 tons of it and sent 170,000 tons to landfill, the report said.
•Increasing the percentage of purchases that include post-consumer recycled material by 2013.
• Developing and implementing an integrated approach by 2010 to design, engineering and habitat protection for all new construction projects.
• Increasing the level of support from the Disney Worldwide Conservation Fund each year for the next five years. The fund contributed more than $1.8 million to 72 nonprofits for 104 projects in 43 countries in 2008.

For 2009, Disney said it will focus on:

• A comprehensive water conservation strategy.
• A corporate-wide green energy strategy.
• A comprehensive waste minimization strategy.

In its annual report to the SEC, Empire Resorts told shareholders that it might not survive the summer.

Owner of the Monticello Gaming & Raceway, Empire reported losses in operations for 2008 of $9.5 million, which is up from $7.5 million in 2007.

Empire is required to pay an outstanding balance of about $7,150,000 from the Bank of Scotland on May 29. The holders of the company’s senior convertible notes ($65,000,000 principal balance due) have the right to demand repayment of the principal amount due on July 31.

The report said “We do not presently have a source of repayment for this credit facility or for these notes and our operations will not provide sufficient cash flow to repay these obligations.”

“These factors, as well as continuing net losses and negative cash flows from operating activities as well as an uncertain economic environment, raise substantial doubt about our ability to continue as a going concern. These consolidated financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern.”

The recession is taking its toll on ski industry giant Vail Resorts, Inc.

According to the Salt Lake Tribune, through March 1, total skier visits are down 5.1 percent from a year earlier. Lift ticket revenue is off 8 percent. Lodging bookings have slid 13.9 percent.

Ski school, dining and retail operations at Vail Resorts’ five ski areas — Vail, Breckenridge, Keystone and Beaver Creek in Colorado and Heavenly in California — have posted double-digit percentage declines.

To avoid layoffs in what Chief Executive Rob Katz called “this unprecedented environment,” Vail Resorts announced wage cuts Wednesday ranging from 2.5 percent for seasonal employees next year to 10 percent for executives. The cuts are projected to save $10 million.

“With the uncertainty that lies ahead, reducing cost is an imperative,” said Katz, who is bypassing his salary for 12 months and then will take a 15 percent reduction. “We have chosen to address this situation by making the preservation of jobs and protecting the guest experience our highest priorities.”