Hospitality Management
Article | July 24, 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 | August 28, 2023
Aviation security gets a new face with an AI-driven accessible screening solution that is a part of Project Dartmouth, a collaboration between tech company Pangiam and Google Cloud. This solution uses artificial intelligence and pattern analysis technologies to analyze vast amounts of data. All this analysis happens in real-time to identify potentially prohibited items in carry-on baggage to prevent coordinated terrorist attacks so that security agencies can take swift action against perpetrators. The Transportation Security Administration (TSA) is currently using this solution on a trial basis.
Threat Detection with Project Dartmouth
Pangiam uses state-of-the-art edge computing with Google Cloud’s AI and ML at the frontline. These cloud-trained AI models run at the edge to speed up the process of threat detection. In addition, using edge computing ensures that there is no concern around network latency and that the solution functions when a network is disconnected.
Achieving aviation security becomes easy with this solution because it uses specialized algorithms to analyze data and patterns within the data. It replicates human intuition to detect items that may look suspicious to a human.
The solution harnesses Aggregated Threat Detection (ATD) software that detects coordinated threats spread across multiple checkpoints, bags, and lanes. For example, the threat could be a weapon that needs assembling with its parts spread across multiple points. In this case, the solution offers a national protective security capability to alert security agencies. Pangiam’s platform collates data from any OEM anywhere using its API approach.
What does Project Dartmouth Mean for Aviation Security?
Safer and Improved Passenger Experiences Dartmouth’s AI and ML capabilities deliver the changed security measures to travelers seamlessly, so their travel experience is not disturbed, nor is their security jeopardized.
Enhanced Security Measures Using this AI and ML-based solution that replicates human intuition, no item that looks suspicious passes the security check. The aggregated threat detection software enhances the ability to detect complex, coordinated attempts to breach security.
Refined Operational Efficiency Automated threat detection software lightens the load on security officers so they can focus on examining baggage alerts. Additionally, airports can utilize their real estate for something more constructive.
Future of Aviation Security with AI and ML
AI and ML enabled tools can streamline some of the security processes and ensure that passengers safely pass through each security checkpoint. Agencies and security personnel can also handle traveler load without breaking any protocols. AI-enabled security systems continually learn, evolve, and make aviation security robust. They will continue to be an important part of the security process.
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Hospitality Management
Article | July 19, 2023
Flight carriers across the world are constantly processing bookings from travelers. To keep up with the demand, they need to be on top of everything. Technological advances have helped airline reservations move away from a manual system. At a time when commercial aviation relied on physical systems, they offered tickets through dedicated reservation centers dotting popular cities. Such facilities had employees to assign paper tickets to travelers. These paper tickets represented the sale of a seat on a flight. But as more and more people could afford air travel, alterations became necessary and a stressful process. The challenges in airline reservation were mostly related to mobility, alterations, and refund and the solution was an online flight ticket reservation system that addressed them all at once.
Cut to 2022. Today, we book flight tickets on-the-go using an automated passenger reservation system, thanks to the computerized reservation systems that are crucial for any airline company or tour operator to offer outstanding customer experience to travelers.
Airline Reservation System: Getting into the Nitty-gritty
The airline industry is not an exception to cut-throat competition, as the number of airline companies has seen a rapid increase in the last few decades. Every company is trying to adopt a new technological solution or business strategy that can help generate higher revenue, offer its customers a satisfying customer experience, and remain up-to-speed with the dynamic demands of the industry. This need to stay ahead of the game led to the creation of the airline reservation system.
An airline reservation system is a web-based flight booking engine used to conduct flight bookings. The bookings are made by collating information such as airline schedules, fare tariffs, passenger reservations, and PNRs with the help of global distribution systems. This system provides real-time inventory and rates for travel agents and travelers so they can choose from the many options available.
Flight Ticket Reservation System Streamlines Flight Booking Processes
A flight reservation system streamlines air ticket booking with key features that make it easy for a travel agent or traveler to book a ticket from their computers or phones. Here are the components of online flight ticket reservation system:
Reservation Management
Inventory Management
Multi-city search Option
Payment Gateway Integration
A Mobile-friendly design
A Customizable System
Online Reservation Facility
Multi-language Compatibility
Why Airline Companies and Tour Providers Depend on Travel Tech Providers?
Airline companies like yours make it a point to use a computer reservation system to achieve their revenue goals. Tour operators also rely heavily on flight ticket reservation system so that they can offer their end customers a platform for mobile airline reservation. Let us take a look at the many ways an online flight ticket reservation systems has changed the airline industry:
Bookings Don’t Have to Wait
Tour operators and travelers can buy flight tickets 24/7 without having to visit a physical counter. This increases convenience and makes the process of booking a ticket hassle-free. Consequently, your business remains available for your customers through your flight ticket reservation system provider around the clock, so they don’t have to struggle to book the ticket.
Your Staff Can Focus on More Important Tasks
With the help of an online booking system, you can reduce the administrative time that your staff spends on tedious filing and noting down customer information. Easily automate key tasks such as payments, report generations, waiver signing, and reservation and let your staff focus on other important tasks. Additionally, customer success teams can give their time to important issues than mitigating smaller challenges.
API Integrations are Your Best Friend
Online booking systems allow API integrations with large distributors and well-known brands within the travel sector. This can make your airline visible to a larger customer base. Such tech integrations can get you more bookings and help you with branding.
Offer an Enhanced Customer Experience
When you integrate flight ticket reservation system solution into your website, you offer end customers a seamless experience. They are in charge of the entire process, right from exploring the flights you offer to checking-in at a time that is convenient for them.
Get Insights into Your Business
You can get valuable insights through the analytics dashboard that tells you about popular sellers, add-ons, time-slots, and seasons using a flight ticket reservation system technology. You can get a clear idea on what’s working for the customers and what isn’t. You can improve your offerings and business processes to achieve business growth.
Last Thoughts
Integrating an online flight reservation system into your airline or tour operations business can help you keep up with the current market trends, and grow your sales and market share.
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Travel Technology
Article | April 13, 2021
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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