By far, one of the things I look forward to the most as The Hotel Guru is going out and interacting with people who are impacted by and interested in travel and the lodging industry. This week, I was invited to speak with 60 thought leaders at the La Jolla Rotary Club and reflect on the hospitality industry, its future and its influence on our economy. Here are some of the hot points that I highlighted:

RA Rauch and Associates

· My company, RA Rauch and Associates, has played many roles for more than 20 years. We are hotel developers, owners, managers, and also consultants for other hotel owners, lenders, developers.

· There are four levels of service: basic, expected, desired, and WOW.  Stephen Covey of 7 Habits of Highly Effective People, referred to an emotional bank account that keeps guests returning to your business if you create that special “mojo” that is referred to by Chip Conley in his book, Peak.

·  RAR targets “wow” customer service in EVERY guest interaction.

What matters now

· Revenue management, distribution channel management and social media marketing has changed the face of hospitality from art to science.

· Today’s consumer is wired and dangerous in this Internet age…social media drives five times the impact of traditional media or more!

· The economy – housing, unemployment and GDP –  are all weak. Our present situation includes the rising oil prices, slowing global growth and shaky consumer confidence.

· The stock market drop in 2008 also caused a drop in hotel values. The net income dropped 40 percent and that is what drives value of real estate assets.

· The San Diego leading indicators were down in June, but we expect to come back on track and not dip into another recession.
Lodging Industry – local and national

· Most forecasters are calling for 6-8 percent revenue growth over both 2011 and 2012. Supply is constrained and occupancy approaching long term average of 60 percent.

· California is doing better in every way.

· San Francisco is leading the country with 20 percent revenue growth this year.

· In San Diego, we ran 66 percent at $121 in 2010, 68 percent at $126 in 2011 and should be at 70 percent at $134 in 2012.

· Revenue per available room (REVPAR) was up every month this year.

· There is virtually no new supply as construction loans are very difficult to obtain.

· The San Diego Convention Center expansion is a big topic on the table. The current plan being tested by Mayor Sanders and Steve Cushman is for a 3 percent hotel fee in the vicinity, 2 percent around a larger circle (estimated  5 miles away from the center) and 1 percent  in areas like La Jolla and outlying regions.

· Another big topic on the table is the Chargers stadium downtown. There’s possible funds from the NFL’s G3 stadium subsidy program, naming rights sponsorships and redevelopment dollars (if it comes back from the state).

· San Diego is home to 56,000 hotel rooms and employs over 150K in the hospitality industry. We have arts, attractions, beaches, climate, gaming, restaurants, shopping, spas, sports and wineries.

· With all of these assets, many of which are available in La Jolla, how are we not busy outside of the summer?

· It takes marketing dollars, especially the funds provided by the Tourism Marketing District!   La Jolla has done a great job with the limited dollars it has, but it is time to keep the San Diego Convention & Visitors Bureau accountable with their own La Jolla marketing efforts.

I ended with one of my favorite verses:  “He who faileth to market, will perish” From the Gospel of Bob, Verse 3.

If  you’d like to hear expert insight on the local and national lodging industry during one of your events, please give me a  call. My team is happy to speak to your association or organization and are  consistently quoted by local and regional media. You can reach me directly at [tel:858-720-9500] 858-720-9500 (office), [tel:858-663-8998] 858-663-8998 (mobile),  rauch@hotelguru.com.

Talk to you soon,
Robert Rauch

From Left: Robert Rauch, Guy Maisnick, and Alan Reay discuss the state of the hospitality industry at the regional lodging conference.

The speakers at the conference discussed how the hospitality industry is coping in the current economy, and what those in the industry can expect in 2011.  Additionally, they discussed who the buyers and sellers are in today’s market, how to value and save and manage distressed assets, and legal considerations for distressed assets.

  Trip Advisor is now partnering with Facebook, and has a great new tool, “Trip Friends.”  The purpose is to let friends consult each other before traveling to a new place. Below you can see our travel map, of locations we have been. We will consult our team, and update the map regularly. If you want to be our friend on Facebook, click here.

• Create your own travel map or travel blog
• Find the best vacation rentals at TripAdvisor

We invite you to join us at a local exhibit and reception titled: “Lilian J. Rice: her life, work and legacy” on Saturday, June 12 from 1:00 – 4:00pm. The festivities will be hosted at 635 s. Hwy 101, Solana Beach, CA 92075.

Event: Lilian J. Rice: her life, work and legacy
What: Exhibit
Start Time: Saturday, June 12 at 1:00pm
End Time: Saturday, June 12 at 4:00pm
Where: 635 s. Hwy 101, Solana Beach, CA 92075

He owns the property, and offers hands-on personal fitness too
By Rob MacKnight

How many hotels have you stayed in where you’re invited to get fitness training or run 3.5 miles…with the hotel’s owner?

Bob Rauch (far right), keeps his hotel guests on the run.

Meet Bob Rauch. He shares his healthy lifestyle in a hands-on manner as he runs and works out with hotel guests at his Hilton Garden Inn and Homewood Suites in Del Mar.

The two properties attract many business travelers. The 7 a.m. runs and grunt sessions provide an ideal outlet for guests to receive personal instruction, sweat hard and attack their days with clear heads. Among other regulars, the properties are home-away-from-homes to entertainers who pass through town to perform at the Del Mar Race Track.
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