Hospitality Management
Article | August 28, 2023
The past year has been one of the most challenging for the travel industry. We saw the end of the expansion of the sector replaced by uncertainty, but it has reinforced our mission to bring the industry together to respond to travelers’ needs.
Our industry is famously resilient. Following the initial shock of the pandemic and the reduction of global travel volumes, the industry has rapidly adapted. Despite the challenges of this crisis, there is cause for much optimism because of two fundamental reasons: people’s innate love for travel and the creativity of our industry. Both will help to harness new opportunities for our industries as we rebuild.
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Hospitality Management
Article | July 19, 2023
The September 11th attacks. The Great Recession. The COVID-19 pandemic.
All three of these seismic and tragic events have resulted in heartbreak to humanity, including loss of life and our emotional well-being both individually and collectively. Of course, accompanying these global crises were monetary meltdowns reminiscent of the Great Depression that commenced in 1929 and lingered until the late 1930s.
After a “relatively” calm 70 years, the United States economy has suffered three devastating developments inside the last two decades, alone. There have been wars fought throughout the world and inflation escalations along the way, to be sure, but the start to the 21st century has suffered escalating and unusually concentrated economic calamities some that have profoundly altered the very fabric of our lives, both personally and professionally.
Indeed, on the business front, such periods have been among the most perhaps the unequivocal most trying of times. Amid current circumstances as the coronavirus rages on around the globe, I recently connected with internationally-renowned business restructuring executive James “Jim” Martin, founder of ACM Capital Partners with offices in Charlotte, Denver and Miami. Having spent the last three decades leading international middle-market companies through periods of distress and transition to actualize stability and growth, Martin is uniquely well-positioned to share insights on how business can rally to best assure a “COVID comeback.” Here’s what he had to say.
MK: First, before addressing the current coronavirus situation, what can you tell us about how you’ve helped companies navigate previous “rough waters”?
JM: Relative to the September 11th attacks back in 2001, I’ll share a representative example of a strategic pivot that didn’t just help a company survive, but actually drove profit. After that horrendous event, I stepped in to assist a large aviation maintenance repair-and-overhaul facility whose revenue had been cut fully in half immediately following the attacks the result of many carriers permanently parking older aircraft (including the 727 fleet). The sizable challenge presented was to maintain a 1000-person labor force while allowing the industry the necessary time to recover. To do so, we created a captive subcontracting company to which we transferred one-third of our labor force. During our troughs, we contracted this labor to our competitors and, during peak periods, we utilized this labor for ourselves. Thus, not only were we able to retain our skilled, well-oriented labor force during the recovery, but that very staff actually provided additional, supplemental profit. The end result was that we sold the business for $138 million, which provided our new investors with a 33 percent internal rate of return (IRR).
Less than a decade after 9/11, amid The Great Recession in 2008, I entered another industry that proved to be among the most brutalized by a global economic downturn: automotive supply. My client was a key supplier to the “Big 3” U.S. auto manufacturers.
At the start of 2008, the industry forecast was the production of 18 million vehicles in North America. Come summer, however, it was clear the automakers would not come near reaching that forecast due to the financial crisis. This did not come as a complete surprise to us, though, because amid our firm’s protocols we had had already fully immersed ourselves in our client’s industry and employed forecasting tools alerting us of trends ... this one in the wrong direction. So, we were privy to the situation well before management and others within the industry. By late June 2008, we instituted cost-cutting maneuvers and furloughs that enabled the company to withstand the industry’s brutal second half of ’08 that would result in two of the “Big 3” automakers filing for Chapter 11. Despite the industry producing less than half—as much as eight million—of its original vehicle-production forecast, our client not only survived, but ultimately grew and prospered.
MK: Turning attentions to COVID-19, what do you feel is integral for businesses to survive and recover?
JM: For businesses to recover from the coronavirus shutdown, it’s going to take a two-pronged approach: both financial and human capital. Starting with the financial, it will be a “loan-ly” world for those not well-versed in the intricacies of SBA, PPP and other “economic disaster” lending. Consider how expeditiously those programs were rolled out. Then consider how even more quickly they were scooped up. Did anyone really read those loan documents in full, or even halfway through, initially or even to this day?
My guess is at least half of the companies receiving COVID-related loans took a very “CliffsNotes” approach to these agreements. The result is there’s a solid chance funds were used incorrectly, which is going to make a lot of the loans, shall we say, less “forgivable.” For example, if your company’s payroll roster is shorter today than it was pre-virus, the portion of the loans forgiven is likely to be less.
And while your mind may rush to claiming ignorance and throwing yourself upon the mercy of the government to which you already pay taxes, realize that third-party capital is likely to participate in this market through securitization. This means that thousands of SBA loans could be bought, then packaged to be sold to the secondary market, at a discounted rate, no less. If this happens, understand that the purchasers will have the full intention of holding their borrowers (i.e. small business owners) to paying back 100 cents on the dollar.
So, those companies who received loans and are required, but unable, to pay them back in full may be exposed to either foreclosure or, worse, a “loan to own” scenario. In other words, much like the agreement that comes with your big-tech user agreements, like those prompting users to “click agree,” the fine print matters.
What this means to recovery is that, once again, cash is king: gather it; preserve it; cease lines of credit; liquidate what you can; negotiate costs down with suppliers. And if your company had a healthy bottom line pre-COVID, than a professional familiar with these trenches can help you look to refinance or bring in equity.
With all of that said, the key to a COVID-19 recovery is going to be adhering to the rules of a lender’s road, as well as the ability to navigate the red tape when you veer off that road. If you have read all the fine print and properly managed your loan, congratulations! You’ve acquired some really cheap capital. For those who didn’t do their research, however, this road to recovery likely will need some paving.
MK: What about the human capital you mentioned?
JM: Yes, and then we arrive at the human capital. Lots of companies today are excessively top-heavy. Remember the part about removing emotions from this process? Companies that quickly recognize cuts need to be made will be better positioned to recover than those who dawdle. Again, compiling and preserving cash is going to best position a business for recovery.
This is an instance where it’s especially beneficial to know when to pull triggers (best if earlier than others) and to make decisions that are not based on emotions a tall order for many CEOs, which is why many turn to turnaround experts. However it’s undertaken, what’s certain is that reducing human capital is painful, but it is also often necessary and almost always beneficial.
The upside is that, when the virus no longer exits, businesses can already be well-positioned for a fairly quick recovery. Maybe not v-shaped sans a vaccine, but quick relatively speaking due to the downturn having been so specific to one singular causing factor.
MK: Tell us a bit about your role as and general value of a turnaround expert when turmoil strikes a business.
JM: During times of difficulty, owners and executives can greatly benefit from specialized knowledge that’ll help them best navigate those unchartered waters that are often entangled in a lot of red tape. So, turnaround experts bring to the table a litany of tried-and-true “been there, weathered that” experience and expertise. There’s simply no substitute for engaging with a partner whose entire mandate is ensuring your company’s survival and success during some of the most grim and challenging times it might experience those professionals who are willing to spend sleepless nights figuring out how to ensure the company meets payroll; who’ll work around the clock to keep the company’s doors open; and who can tackle challenges without being hindered by emotions that understandably weigh on a business owner or manager. It takes this kind of specialized expertise, experience and grit to lead companies through periods of distress and transition, to stability and growth.
No stranger to corporate chaos, during Martin’s own three decades as a globally-regarded turnaround expert, he has reportedly created and restored nearly $1.5 billion in value to lower middle-market companies; raised an additional $1 billion in capital; and managed mergers and acquisitions in excess of $500 million all collectively representing his company restructuring portfolio valuation in excess of $3 billion.
Today, as the coronavirus continues to wreak havoc on business operations far and wide, take heed that there are various key strategic and creative tactics that can help businesses not only weather the storm, but even emerge stronger and more financially secure on the other side.
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Hospitality Management
Article | June 20, 2023
Embark on transformative journey through top hospitality management certification in the tourism and hospitality industry. Elevate career prospects with industry-recognized hospitality certification.
The hospitality industry is a dynamic and fast-growing sector that requires skilled professionals to deliver exceptional guest experiences and drive business success. Whether you are an aspiring hospitality professional or a seasoned industry expert looking to expand your knowledge and enhance your career prospects, pursuing a hospitality management certification or course can be a valuable investment. Hospitality management courses are short-term, specialized training programs designed to offer learner with a comprehensive understanding of hotel management and the hospitality industry.
1. Management Foundations in the Hospitality Industry
Experience a transformative journey in hospitality management with the hospitality management certification, Management Foundations in the Hospitality Industry. This advanced course caters to industry experts, equipping them with a comprehensive understanding of motivation, leadership, communication, decision-making, and effective human resources management. Delve into service-driven excellence, ethics, social responsibility, and enhancing consumer experiences. This course consists of four modules covering resource allocation, talent recruitment, interviewing, employee training, performance appraisals, and liability avoidance. To solidify your knowledge, the course features curated readings, interactive discussions, and practice quizzes. Elevate your professional prowess and unlock new horizons in the dynamic hospitality industry.
2. Guest Service in Hospitality and Tourism
Enhance your hospitality and tourism industry expertise with the exclusive certification in hospitality management, Guest Service in Hospitality and Tourism. This advanced course caters to industry experts, equipping them with essential skills and knowledge to excel in customer service. Dive into the intricacies of greeting guests with finesse, responding adeptly to complaints, and creating unforgettable experiences. From maintaining composure in challenging situations to demonstrating empathy, you'll master the art of exceptional service. With this course, you can learn and leverage practical strategies to handle common grievances, ensuring guest satisfaction at every turn. This certification program will unlock a world of opportunities in the dynamic field of hospitality management.
3. Introduction to Hospitality Management
Embark on a transformative journey with a certificate in hospitality titled, Introduction to Hospitality Management. As you transition into a managerial role, renowned restaurant consultant Mike Ganino shares expert insights in this comprehensive online course. Acquire essential skills, from preparing for your first day as a manager to effective task prioritization, delegation, and confident leadership. This 30m 35s online course will help you to optimize staff rostering, master multitasking, and ensure exceptional service standards. Gain expertise in handling challenging situations with demanding customers and effectively respond to customer feedback. With this course you can unlock new possibilities and elevate hospitality management career.
4. Hospitality Management Cornell Certificate Program
Uplift in the hospitality industry with Hospitality Management Cornell Certificate Program. As one of the premier hospitality courses developed by the renowned School of Hotel Administration at Cornell University, this advanced certification equips industry experts with the essential skills and best practices to excel in management roles. From finance and marketing to team building and guest loyalty, you will gain a comprehensive understanding of every facet of hospitality management. The course allows one to learn from renowned experts and participate in virtual Zoom sessions, exploring the industry's trending topics. This certificate program is for a duration of three months, divided into weekly modules of three to five hours per week.
5. Teamwork in the Hospitality Industry
Embrace the power of effective teamwork in the dynamic hospitality industry with the comprehensive Teamwork in the Hospitality Industry course to improve your work experience. As a hospitality industry expert, one must understand teamwork's crucial role in enhancing work experiences and driving success. In this microlearning program, organized with four lessons to fit seamlessly into a busy schedule, you'll develop the essential teamwork skills required to thrive in the fast-paced hospitality environment. From understanding the significance of effective communication within teams to practical applications and navigating noisy environments, this course empowers you to elevate collaboration and deliver exceptional results.
6. Understanding Travel and Tourism
One of the best hospitality and tourism management certifications, The Understanding Travel and Tourism, a course published by NuYew, is one of the best hospitality management programs to enhance expertise in the thriving world of travel and tourism. This course provides a platform for learners and industry experts to gain valuable insights into the travel industry's fundamentals, benefits, and terminology. Acquire the essential skills necessary for success in this dynamic field and discover renowned global tourist destinations and attractions. In addition, the course also includes the intricacies of business travel, hygiene standards, food safety, and event planning within the hospitality and catering industry.
7. Accounting and Financial Management for Travel Agencies
Overcome the difficulties of managing the travel and hospitality businesses' accounting transactions or financial statements with Accounting and Financial Management for Travel Agencies. Designed to help industry experts boost their financial management skills, this course will equip you with the knowledge to navigate accounting transactions effectively, interpret financial statements, and make strategic decisions that drive profitability. With the combination of practical case studies and interactive simulations, the course has been created to develop a deep understanding of accounting principles and learn proven strategies for financial success. Whether aiming to meet investment requirements or comply with industry regulators like IATA, this course ensures you have the skills to manage the agency's financial health.
Summing Up
Learning has become more accessible and convenient than ever before thanks to the advancements in technology. By embracing the listed hospitality management courses, individuals can equip themselves with the necessary skills and knowledge to thrive in the ever-evolving landscape of the hospitality industry. As we move forward, it is evident that continuous learning and upskilling will be crucial in staying relevant and competitive. The online hotel management certification allows professionals to adapt to the changing demands of the industry and stay ahead of the curve. By harnessing the power of digital platforms and innovative learning methods, individuals can unlock new opportunities and pave the way for a successful career in hospitality management.
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Article | December 3, 2020
The travel industry is getting back to business, and demand has skyrocketed for travel technologies that make interactions possible between companies and corporate travelers. A recent Gartner survey reveals how 2020 affected CFOs with their corporate travel and expense management tasks globally.
How will finance teams report and forecast expenses? How can corporate travel costs be managed? How to manage travel expense management processes effortlessly? Does this sound familiar to you? These were a few valid questions that kept companies engaged in finding answers during the pandemic.
Many finance leaders want to implement proper corporate travel and expense management services and find solutions to bring consistency and clarity to their financial processes. While switching from manual processes to automated management systems can be difficult post-pandemic, with an efficient travel and expense management tool or software, your company can gain optimum benefits and stay productive in the future. This article will show you how it evolved through the coronavirus phase efficiently.
Adoption of T&E Management Process for Seamless Work Experience
An American Express survey found that 55% of the chief executives and senior financial managers ranked rising travel and expense costs as a top concern during the peak pandemic phase.
Digital transformation of your processes is a critical strategy for spend management, and it ensures that employees are using the right product to get the best value. By adopting an efficient travel and expense management tool, your company can gain stellar benefits for your finance team to cater varied requirements, and keep a rigorous control over corporate travel spend.
Before looking into how travel expense management processes are evolving post-pandemic, here are the benefits and value travel and expense management solutions offer. Also, this will further facilitate your finance team to manage the current corporate travel scenario effectively.
Benefits of Travel and Expense Management Solutions
The travel and expense management didn’t disappear during the pandemic. Instead, it accelerated its core value. The idea of integrating travel and expense management services with the help of big data in the travel industry is to leverage best practices for travel expense management that can help analyze and extract key information to diverse corporate travel finance functions.
Travel industry leaders who are integrating effective travel expense management services in their corporate travel system have experienced the following benefits:
Automatic processes of expenditure
Data-driven decisions are smarter
Time-saving mechanism
Simplifies budgeting
Ability to forecast more accurately
Delivers better user experience
Quick access to integrated data from expenditures
Gain deep data visibility
Higher rate of compliance with corporate policies in finance
These significant upticks will benefit your company and will simultaneously improve your corporate travel policies. Understanding these benefits will help you identify how travel technology can help your company manage complex financial tasks that arose during the pandemic.
According to a Gartner survey, a travel expense management system is essential as a key solution to manage the corporate travel economy. Any company, big or small, needs to control its expenditure to recover during the pandemic.
Complex Forms of T&E Management Are Gone
Legacy processes may get a job done, but they are more time consuming, error-prone, and do not provide visibility into travel spend. And when your travel and expense management process is slow and cumbersome, it can slow down the growth trajectory of your business.
Corporate travel and expense management automation and its associated features like corporate travel policy, quick and easy booking, automated expense and reimbursement solutions, live credit card feeds, backup analytics capabilities, and more have taken precedence post-pandemic. These services offer more visibility into the travel spend of your employees. With top travel and expense management solutions, your finance teams can monitor and control costs and expenses in the long run.
While many corporate travelers have started researching and organizing trips online, you need to add value to financial services by adopting automated travel and expense management solutions that work effortlessly.
Core Focus Areas of Travel and Expense Management
The post-pandemic era has seen a lot of companies embracing new and updated travel and expense management solutions to drive cost savings, and enable finance teams to have a better control over their road warriors. Here are some:
Contactless Data Record Is the next Big Thing
Travel and expense management systems allow employees to record all corporate travel bills and receipts through mobile apps and create expense reports immediately. Big data in the travel industry has played a significant role during the pandemic. Technology leaders have already experienced the benefits of travel and expense management.
For example, TripActions’ travel and expense management platform uses data to learn about business travelers’ preferences, and predicts within 30 seconds what travelers are going to book with 90% accuracy. The advantage of big data to travel and expense management has already organized several effortless finance processes for corporate travelers to experience seamless budgets.
Automation Is Crucial
Integrating travel and expense management solutions could easily add to the unimaginable overheads that companies are experiencing. Automation is one of these solutions. Its integration in the travel and expense management system will give rise to a paperless world that will facilitate finance functions to build an audit trail. With this, it also ensures total compliance to keep the organization and its process fast.
Agile Technology Is the Enabler
Critically for the travel industry, agile technology has allowed multiple methodologies for incremental development in corporate travels, which has transformed the processes from rigid to flexible. The agile process in corporate travel and expense management allows analyzing tangible results on expense. The approach also provides the potential to change plans according to the requirements.
For example, Lola.com, the agile travel management company is helping corporate travelers book, re-book, and take the task of expense reports off the table easily. Finance teams arrange travel policies in minutes and equally manage, control, and view expenditure effortlessly. In short, agile technology is making it much easier for travelers and companies all round.
To address the use of agile technology in travel and expense management, Jeanne Hopkins, former CMO at Lola.com, the agile travel management company shares
“Finance teams at Lola.com have tried managing, controlling, and got visibility into expenditures efficiently by implementing travel and expense management. Small and mid-sized businesses have to be fast and dynamic in the changing scenario of travel, so that actions like booking, re-booking, and managing corporate travel could be performed with efficiency and results in high productivity.”
A Hassle-free Expense Management System
Expense has been one common challenge with corporate travel programs. Integrating travel and expense management in your company can eventually introduce you to a hassle-free work solution. As the process involves collecting receipts from multiple sources, either from hotels, flights, or car rentals, travel and expense management solutions make it easier for a manager to look at all corporate travel costs at once. Also, in terms of future travel spend and potential savings, the capability of this management remains exceptional. Modern travel and expense management solutions also include self-service, real time, and easy navigation.
For example, for travelers, Lola.com has a large inventory of flights and hotels that allow users to avoid going to various sites to compare fares, and save preferences, loyalty programs, and provides payment options in one place. Traveler profiles are automatically stored so that users can book with one click. The 24/7 support team then ensures easy booking and re-booking for its users without any delay.
End-to-End Integration Is the New Order of Workforce
End-to-end integrated systems in your company will help your finance team implement best practices for travel expense management. This will make it easier for your employees to initiate, approve, and pay each transaction out of hundreds within minutes, thereby creating a seamless task without any manual involvement.
Travel and Expense Management Trends
When you automate your travel and expense process, it will not only maximize your returns but, at the same time, it will minimize your spending. This will save you both time and money. Below are the reasons you will want to consider making a switch to automate from a manual process.
Remove Guess Work from Expense Process
For finance personnel in your company, the new travel and expense management system can be set up in five minutes. One of the travel and expense management tools, like Expensify, helps with easy expense tracking and reporting. Similar to this, SpendCatcher – a mobile application of MobileXpense.com that is infused with AI and deep machine learning extracts payment information with just one tap.
Supplier-direct Bookings
Companies whose employees use a corporate travel and expense management system can receive reports according to department, employee, direct travel supplier, hotel, or car rental company. This information helps managers analyze spending patterns by actively monitoring it with up-to-date information in one flow from various travel suppliers.
In this case, Concur TripLink connects to corporate travelers for direct bookings across the borders. It gives visibility of bookings no matter where it is booked.
True Visibility into Spending
The corporate travel and expense report management system automatically flags and creates analyses of dashboards highlight hidden expenditure. This can be helpful to know:
How much expenditure is going in personal corporate travel cards, and why
Find expense categories easily
Find out why expense is falling short and ask for details
In this context, MasterCard International is rapidly approaching towards a smart, web-based expense management system to control spending, generate comprehensive spending reports, and accurately integrate purchase data. Thus, delivering business efficiently, quickly, and easily.
Rise of Bleisure Travel
Corporate travel and expense management also includes ‘bleisure travel’ for corporate travelers, those looking to combine business travel with leisure time. With agile travel and expense management tools, you can make quick changes in plans to keep your employees and finance team happy and productive while mapping the budget. In this case, Lola.com has made travel and expense management real by providing an effortless way to manage, book, and report on business plus leisure travel, by encouraging its employers to save most of their time and money.
Travel technology offers a deserving platform with travel and expense management to companies for added efficiency and visibility over travel spend. As corporate travel businesses are returning rapidly towards their regular work scenarios, the travel industry will see a rise in revenue. Travel and expense management system will be one of the powerful remedies to the travel industry and will increase its scope to drive growth post-pandemic.
According to the new Skift report, 88% of corporate travelers will drive travel technology company growth. 86% of corporate travel managers believe it. Put an end to complex budget management and legacy processes; it is time to know how to manage travel expenses in corporate.
Frequently Asked Questions
What is travel and expense process?
The aim of the travel and expense process is the complete administration of travel expenses, including the recording of expenses, posting in Financial Accounting (FI), and allocation in Controlling (CO) and Funds Management (FI-FM). The process also involves the valuation of costs associated with business-related activities.
Why is expense management important?
Expense management is important for businesses because it helps employees to keep an accurate track of expenses. This caters to them to plan financial aspects for the future with more clarity and confidence. Capital flow is a daily process in any business, so to manage some significant amounts could get efficiently done through expense management and generate a profit.
What is travel and expense management?
Travel and expense management is a process that includes finance management by the employee when on a business trip or any expense is made for business goals. Each travel and expense management consists of detailed records of costs, expenditure, budgeting, and report submission.
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