Hraba Hospitality Consulting

Okay so I am really frustrated.  Well… that’s dramatic.  I am more confused, and too busy to gesticulate in the air and ask this question to the windows and fluttering leaves outside my office…. what in the hell is the point of Facebook for a hotel brand anyway??  I think a lot of people are using the Pareto Principle to organize their time in “doing” social media, as suggested earlier last week *here*.  I was going to try and find all the examples I have run into in the last year, but instead offer into evidence exhibit “B” – that time management is a very impacting conversation mentioned over and over because we are so dang busy and REALLY want to figure out what is important, and what isn’t.  So what’s important about Facebook?  Frankly, I am starting to lose my enthusiasm, especially since the stream change I reference right *HERE*.

Whether “Hotel Pages on Facebook” work isn’t a cut and dry question to say the least…. whether they are useful, or whether they are actually hotels to begin with is where we can start.  For example, if you search “Hotel” on Facebook, then filter so that only “pages” appear, the first 3 pages of over 500 results does have a hotel or two, but the majority of pages are for a band, or a page devoted to hating said band, or one of 15+ (I stopped count around 13) of Facebook Pages for the wonderful, if not somewhat antiquated, “HOTEL” board game.  Sure I enjoyed the game too, as you fair readers are just reminded of how much fun it was when you last played.

But this is no longer kid’s play.  This is business… and I want to make sure we are not wasting our time.

Two Important Questions, the latter being more impacting: “WHAT HOTELS ARE USING THEIR FACEBOOK PAGES THE BEST???”… and then the *really* important question….”THOSE HOTELS USING THEIR PAGES THE BEST… *what* *is* *the* *benefit*?”

Basically.. I would love to hear the positive, happy Facebook stories about hotels with groups or pages?  I am at a loss for any real examples of how it is “business”, or can be used effectively.  Like… none.  I know we have to be on FB… there has to be a presence.  But what am I missing guys?  I note this has come up recently, like *HERE*… but there hasn’t been much follow up.

I see people on hotel pages saying “I love your brand/hotel”.  I have also seen people upload a picture here or there.  But I *do not* see anything deeply meaningful or anything really happening (IE commerce, business, or jumps to booking engines, etc).  I know that the restaurants and especially lounges seem to like to use it as a place to update events, etc…. but most of the fans on a page would be previous guests, presumably not locals?  I have always thought hotels should ingratiate itself to the community, but there are only so many events and specials that you can target the community with, as they aren’t going to always be your strongest base or the people the pay the bills.  For brand image you need them happy, but they aren’t your guests.  What’s more, if you do constantly focus on locals… you are missing out on the bread and butter, which is rooms.  It is complex… is the page for a local clientele, for potential guests, for past guests that are part of your culture?  All 3? It’s almost like Hotels focus on the locals not because they *want* to.. but becuase, by default, they *have* to… as they don’t know how to reach others.

I for one haven’t the foggiest how you would get a potential guest to your facebook page, and what’s much, *MUCH* more important… is why?  Why would I want to get a guest to a page without much information, meaningful content, or a booking engine?  Isn’t the potential guest someone we want to end up on our hotel site?  Even the SEO premise is interesting, but if people aren’t searching or using FB to find brands, what’s the point of getting them to your page when they can’t do anything?  What’s more, if a FB page is basically a one sided twitter or RSS feed of brand info, wouldn’t you want your potential guest on your branded site instead of a dead-end of non-interactivity?

So what is the page for?  For now I have a couple things:  brand awareness (news, etc), SEO (your link on FB), contact info, (but FB’ers aren’t using pages as a yellow page, nor are they using it as a resource), events, specials.   Let’s look at some hotels and how they successfully use FB:

Hotel Costes – 25,000 fans, zero wall posts, obviously just a “front” or online billboard.  I think this may be the most effective use of a FB page out there.  Just build a nice page, and walk away.  I hate to be cynical, but it might be the simple best page I have seen, albeit a little tongue in cheek.  I will say that “Hotel Costes” is also famous in the younger scene for having downtempo lounge DJ’s playing, and have an associated line of CDs which may be part of its popularity.  Whatever the case, one of the hotel pages with the most fans, and they aren’t doing anything at all.

Hilton – 21,107 fans, with 8 posts on the wall in the last 14 days.  Those posts are the typical “Hilton is the best,i love it”…  meaning relatively benign, fairly non engaged commentary.  They aren’t posting anything, not even RSS.  I have seen some hotels pull back from posting, as the change FB made has wall posts injecting into people’s conversational stream like spam.  Hoteliers are confused how to handle this, and even I have found brand updates annoying as all get out (and I am the type that is meant to be tolerant of them, being my profession and all).

Hotel Aladdin – I love this example, because they are actually interacting with their 10,000+ fans.  You may not speak Spanish, but you can tell they are updating the wall, and people are actually participating.  So what is this meaningful interaction from a hotel doing a good job with their page?  People thumbs up, IE “Like This”, by clicking on the feed post and that’s about it.  Comments are frequent, but I still don’t see business.  People liking you doesn’t necessarily translate into “time well spent”.  They did have a contest where they gave away 3 rooms, which is a great way to garner attentions and fans… but does it make a booking down the road?

St. Julien – Obviously using the page, as they moderated a question I asked about their page.  They had a Earth Day special that got some attention, and some fans.  However… they got fans on the pretense of planting trees.  People joined, they announced 70 trees in those new fans honor.  But what now?  That first post since the event is about 20% off in the spa.  They have 216 fans right now.  Any wagers on whether the amount of fans goes up or down in the immediate future?  I *assume* new fans will tire of spa ads in their stream and de-fan pretty quick.  Whatever the case, are they spending time that generates business or justifies time spent?  Exactly *who* fans pages right now?  Who fanned St. Julien for that promo – people that wanted a tree planted, or people that wanted to know about the hotel?

HotelChatter mentions some more hotels that have pages, and that are potentially doing interesting things:

Whist at Viceroy Santa Monica with 125 fans is basically sending a dinner offer once a week, and nothing more.

High Peaks Resort, frankly, seems to do everything right when it comes to social media.  As much as their stream looks solid, with 300+ fans, I still wonder what sort of commerce or interaction happens…

The Jane, with 52 fans, hasn’t really posted anything *since* the hotel chatter article.  This isn’t indicative of them doing anything wrong, I simply think it is indicative of no one really knowing how to create meaninful conversation on FB.

I could keep coming up with more pages, but these are simply a couple hotels whose pages have already been chatted about in the social media conversation.  I notice most people aren’t doing anything, when they do it is usually a contest to garner more fans (to what end I am not sure anyone knows) or a special on wine at dinner , etc.  All this just lends itself to a couple points:

1) Social Media is about conversation, which is something I see on very few pages.  On FB, it is basically a one way pushing of information.. deals, news articles etc.  If FB had reviews that could be fused into a page, or some “game” like Hyatt developing one of those “what’s your travel personality” quizzes, it might create better interaction… but very few have the time, money, or justification to do anything like that.

2) Social Media is open, which FB is not – meaning that most of the time, on Flickr or Twitter you can actually have a chance of interacting with potential clients, while FB only has those that already know of your property, IE locals looking for a good deal on wine at dinner.  How many people is that for?  What percentage of fans will be local, and will actually utilize that deal?  Who is your target on FB?  Why is that your target?  What are you attempting to achieve with FB?

In the end -I think that question sort of zinged even myself… “What are you attempting to achieve with FB?”

I for one don’t have a clue.  I just know, even worst case scenario, it’s great to have your link out there in a place with a high page rank.  So that is why I am there, even though why I started was totally different… it was to regale guests, interact with them, create stories and remember moments…. but now, I feel relegated to checking it once in awhile, staring blankly, and then moving on.

I think a lot of hotels set up a page, have absolutely *ZERO* idea how to meaningfully interact with potential guests, and resort to offering locals dinner deals in their restaurant, because there isn’t really a way to reach a prospective client on FB (and don’t get me started on their advertising program… because we know that doesn’t work.  No conversion tracking, Lack of results, users not seeking advertising, and the Social Media Ad Model is broken anyway).  You can only reach people that know about you, and that can act on offers, deals, and last minute specials.  These aren’t clients that provide a powerful revenue stream to your hotel, and often, as we have seen with dropping rates to garner occupancy… the people looking for a deal aren’t really the clients you want anyway.

Are we wasting our time?

I did find some other great pages on FB about hotels….Hotel Rwanda, Hotel for Dogs.. and I am reminded people are passive.  They want to watch a trailer, or be told about a brand or product… but consumers on FB don’t necessarily want to interact with the brand yet… nor are many looking to become a vocal endorser and push your hotel page to their friends and network.  Basically, it is just something to click… and a page is something to ignore until it annoys you and you de-fan.  What’s more, you can’t tell consumers about your product if you aren’t able to reach them within the closed network.  It reminds me of Mashable’s comments that “Facebook needs to convince users to SEEK advertising.

Very complex stuff.

Cure my cynicism.  Tell me why I am missing the point, the bus, and target?  How has a FB Page saved your hotel brand, and made things better for you?  I want to hear stories now because I am quickly feeling like a page is nothing more than the 80% not actually causing any real impact.  Time to cull, and focus on the effective 20%…..

Is FB part of that 20% that gives you 80% of results?  Let me know!  Otherwise… I might be encouraging clients to build the page, and simply move on.

Share your experiences and thoughts!

Seriously…. where are our revenue managers?

I know, in these times, you cannot maintain total rate integrity without looking like an out of touch management group.  Others try to maintain their rates by laughing at their clients and just being rude, something so pompous and idiotic I need to quote it here.  CMO Scott Williams, from Morgans Hotel Group (on behalf of the Clift in SF) said it professional as can be:

““You can bury your head in the sand, discount your rooms, piss your brand away. But we are a luxury brand and we will act like a luxury brand. I’m going to look back at this recession and say ‘we didn’t just drop our pants.’

He has a way of making a point, doesn’t he?  It is a valid issue, no matter how garrish, classless, and totally out of touch he is.  (Even using that “L” word can get you in trouble.  The current “luxury” fiasco that has everyone up in arms, from groups to spas.)  Not everyone is maintaining rates with such bravado.  Choice Hotels seems to be doing a great job.

Whatever the case, the question is clear.  Where the heck are our revenue managers?

Well… after reading this article that suggests group rates are higher than transient/FIT rates (based off Star numbers), we might be able to guess where they are…out of work.

Is it possible that a significant amount of hotels pulled the plug on the pricey, but imperative, revenue manager?  I have heard of a couple properties letting them go, or restructuring so a Rez manager *becomes* a rev manager at the same payscale…. but I am starting to think they have all been fired from the hotels that actually had them, possibly due to the economic problems we are experiencing.  That’s my best guest, and it might be wrong…. but they seem to have gone *poof* and vanished.

I know the industry has been slow to grasp the concept of revenue management. As I mentioned, many still think it is a reservation manager under the Rooms Division, but that’s a majour mistake.  If this new trending information isn’t enough to help hotels realize that it is imperative to have one, I am not sure what will get the industry to really take notice.  A Revenue Manager has the final say on negotiations with the Director of Sales and Rooms… as well as reports directly to the GM so their experienced leadership can help helm the ship….but it is vital to have one, and it simply seems the concept of paying one an appropriate salary has fallen by the wayside.

In an effort to conserve on salary, it seems that more Revenue Managers have popped up with the same pay they had as a rez manager… seeming to be some off-handed consolation from archaic leadership just trying to get a grip on the new position, and blindly filling it (“doesn’t cost me a cent? sounds like the same thing to me.” mentality).  But a title does not a Revenue Manager make.  It simply means they don’t “get” what a revenue manager is, or does.  What’s more, the revenue management job is so intensive, so incredibly complex, and constantly changing in the *very* real time (the best revenue managers I know work 24 hours a day, basically)… I think a proper revenue manager should possibly be the highest paid person on a hotel team, short of the GM.  Might be a big statement, but even I don’t totally understand revenue management…. and I know these people are vital – possibly more so than the rooms manager.

So why do we know there is a problem beyond Group rates being higher than Transient/FIT rates?

Well.. No rate parity at all in majour markets (Las Vegas, Miami) and boutique markets (anyone look at rates in Monterey, CA the last couple months?).   What’s more, Revenue Management has taken a noticeable hit that has been trending since before this total economic meltdown, and polls suggest that thoughtful rate control has turned into a panic of sorts.  Ownership wants market share, even if it is out of step with the rates, often thinking “a full hotel is a happy hotel”.  This is where the pressure for Revenue Managers comes in… listening to the owners even if it is against their own best interests (lack of rate integrity kills future biz, and it will bite the person controlling it in the rump down the line).

With the economy, Rev Managers took a hit and now there is a dirth of any real control at all. It’s frustrating to see.  A lot of missed opportunities here, and a lot of smart people (like HotelSphere’s *incredible* post) are seeing that. I think this is an anomoly, and nothing more?  At least… I hope it is.  The real question is “Can our business work like this long term”?  I highly doubt it, which is why 2009 has got to be the year that Hotels cry out “PARITY!!” as a battle cry, and remain completely focused on integrity (Page 3 of this New England Hotel Mag has a great primer for Rev Management and maintaing rate integrity).

I know, as an owner and manager, you want to employ a lot of people.  What’s more, you especially don’t want to let valued staff go in this economy.  But it is what we do when times are rough, and we need to maintain rate for the longevity of your business rather than trade for occupancy for a handful of employees.  You won’t be able to employ them in the future if you drop the bottom out now, and what’s more – of the staff you do have left you won’t be able to pay a good wage.  This all degrades fairly quickly, and is obviously more complex than I could ever explain in this space (or totally understand).

So what do you think?  Do you, gentle readers, think they are still out there feeling constant pressure to listen to ownership, or did hotels let them go in droves when the downturn happened?  Is the industry just not getting “revenue management” yet?  I would love to know your thoughts.

Until then…. do whatever it takes to suck it up now.  Rather than panicking and having to pay a grave price in the near future (that may last longer than the downturn), do your due diligence, measure, watch, and manage.  Emotional rate management doesn’t help your business, and you don’t have the money to lose right now.  I have never been a big fan of paying with credit…. and in this situation it is just one post-dated check that your hotel shouldn’t write.  Don’t pay now with something you won’t be able to get back later.  It’s a bad move, and you need to trust your revenue manager much more than you are now.  Or better yet, hire one.

Josiah Mackenzie, hotel marketing pro, blew my mind once again with his exhaustive and insightful advice in using Flickr for Hotels.  His social media plan and help is just…. wow.  Thanks sir.  Some of his thoughts will be in the social media bible, whenever someone has enough time to sit down and write one (even though it seems to change second to second).  Whatever the case, his work always gets me thinking.  This time it brought me back to the vague, somewhat uneasy marriage of business and flickr.

Something people don’t seem to want to talk about, or at least isn’t brought up too often in regards to Flickr, is their famously nebulous Flickr TOS & Yahoo Terms of Service.  I have spoken to some industry professionals about it, and am confident these are quiet concerns people keep to themselves and the kitchen table at 3am.  A few have approached it, as well as there being spirited conversations, involving multiple staff, on Flickr itself.  Just like Yelp’s notoriously vague behind the scene manipulations, people have cried foul to the way Flickr chooses to manage/delete accounts, with seemingly random application of it’s TOS.  What’s more, it seems people aren’t confident in how to use it.  Even the staff have varying viewpoints and opinions on the matter.  At least one majour hotel flag and brand that uses Flickr relentlessly (and incredibly effectively) says he goes to bed at night thinking he will wake up and the accounts will be deleted. Other groups, like craft makers, are completely lost as to what “commercial purposes” means, and are getting frustrated with errant deletion of their groups.

The reason this concerns me is because I see the most avid users of flickr talk about it being “spam central”, and people being incredibly aware that brands are *really* starting to penetrate that site.  The above linked article is from a year ago, but the conversation is incredibly relevant.  If you are still unsure, try searching “flickr” and “TOS” on Twitter Search; that is pretty overwhelming that there is a big question looming.  As Flickr hears more from the community about brand spam, when will they take those famously vague words, “Flickr is for personal use only. If we find you selling products, services, or yourself through your photostream, we will terminate your account.” into account?  When might they start looking at a brand and suggesting it is creating less of a “story”,  and creating more of what their users don’t want.

People do not want their photo sharing site to turn into a business marketplace.  It is obvious by the discussions happening about “commerce and flickr”, and most apparent with commentary on flickr group discussions about Etsy, and people using Flickr to catalogue their offerings.  That is an incredible no no, apparently.  But that certainly draws our line a bit closer and more precarious, as we don’t *really* know what hotel’s photo sharing is about.  Can anyone define that?  We do know that “Flickereeno’s” (Flickr Staff) are incredibly helpful and accessible, compared with some other social sites.  They responded inside some of the above linked threads, as well as directly to people’s earnest questions.

These are some important problems to resolve in regards to exactly what space a hotel operates in, on flickr.  Their TOS expressively forbids businesses for using it, in any way, for commercial purposes. This includes etsy people using flickr to host a catalogue, or private, personal businesses owned by individuals who are using flickr in any way for their biz. This is complex, because they are obviously lenient, and cannot possibly have omnipresent control, but they have the right to clamp down any time they wish.

In a recent meeting, we met with Flickr’s GM on an unrelated note but asked him about brands and photos, *SPECIFICALLY* in regards to hotels.  His paraphrased words are as follows:

“We typically are fine with a collection of images that tells a story”, but they are down on direct advertising.

I doubt they will forbid relevant or useful brands from existing, but there is a chance in the future that they will crackdown.  Until the TOS are cleaned up to expressively permit a hotel from existing on Flickr, their right will be to delete your account without warning or justification. As of now, their TOS suggest that they *will* do this at some point in the future, in that a hotel is not a person using it for personal reasons.

I guess the point is that it is a relevant and important aspect of a hotel social media optimizer’s job.  Use it effectively and it can be an incredible tool to help your hotel.  If you aren’t sure how, you can find interesting articles like this about marketing and Flickr, or simply use Josiah’s incredible work.  You will miss out if you aren’t part of this, and it can really help your overall social media program.

At least for now.

Someone had asked what systems of PMS are out there… and where you start.

Frankly, researching, engaging, and dealing with the endless sales negotiations is daunting, and tiring. I still don’t get why PMS’ aren’t transparent and straight to the point. I don’t want to negotiate for 3 weeks just to find out there is a “competitive discount” at the end worth $60-100K. That’s asinine, and it wastes people’s time. Until then…. here we go with some loose numbers about IT!

A Note About These Numbers.

I have done my due diligence for many hotels, and these are the trends.  Vague, non binding, budget purposes only numbers;  IE – don’t quote me, but these are my experiences. I don’t think it is unethical to share these numbers… they are loose based off of many projects, and I am also not divulging the sensitive licensing fees, software costs, integration and implementation fees, etc. Ask me more or email me if you want specifics.  What’s more, this doesn’t totally include all hardware, but the big numbers at the end should compensate for much of it.  This isn’t stubbing out fiber optic, nor is it all the imlpementation time for your tech people to set up the server racks, etc.  Of course, that’s a different budget.  This is basically IT software plus some of the peripherals that make it run (like touch screen POS, etc).

Also… in interest of environmental concerns… there is little wrong with having redundant RAID array servers, and having your system work off of a thin client environment.

I am available, of course, to talk about this at length.

What PMS should you buy? How much should you budget?

The PMS you should buy is obviously the one that works for you.  There are many options, like the AMAZING and TALENTED and Customer Service oriented guys at Mirage Hotel Systems.  Sure it’s not pretty, but it’s going to run about $45K, and they are guys you can call to change something and it will be changed IMMEDIATELY.  They are amazing, I have always found it a pleasure to work with Armond and the gang… and if you talk to them, mention that I sent you.  They rock.  But it isn’t necessarily appropriate for some luxury hotels, or complex layouts, etc.

The big players (in my opinion) are as follows:

PAR/SMS – Springer Miller Systems will be the most expensive, and I am not a big fan. It’s huge, clunky, they oversell it, and the implementation and integration is not so great.  It used to be the leader, and might still consider themselves the “cadillac” of PMS.  I say it’s big… REALLY big.  It’s also prohibitively expensive, and the back end interfacing and tech isn’t always the best.  Of course, that is a problem with almost all these systems.  Once they sell it, they never seem as eager to fix things after they get the check.  Budget $166K w/o modules. It’s a *beast*… modules included I would say a total would be around $300K+, easy.

Micros/Fidelio Opera – Probably the industry leader now, and for good reason.  A windows based program that is slick, intuitive, and often prohibitively expensive.  They have the industry leader for F&B POS, but the sales and catering is light to say the least, and I am not even sure they have an integrated accounting system.  It’s a solid PMS, and you will be happy. Period.  However, the S&C module is nothing compared to Delphi, and I have seen properties buy it, and switch to delphi years later.  The spa system is limiting too, but not in price.  Micros/Fidelio Opera – $130-150K w/o modules.  Modules -
F&B $15 – $25K depending on the restaurant
S&C – $30K approx
Spa – $35 – $40K approx

This will end up around $250K for the total with modules.

Agilysys Visual One – Visual One is fantastic, but the peripheral modules (desk, F&B) aren’t so easy on the line and front of house as I would like.  The back end accounting, G/L, month-end is ***AWESOME*** (read, “like a dream”) and very simple. What it comes down to is sacrificing front end functionality with back end convenience.  The problem here is that you are paying that back end controller more money than the simpler line staff who have to deal with some complex, and frustrating issues.  It depends if you want unhappy staff and happy owners, or vice versa… however simplistic that sounds.  Honestly… we always want our reporting and accounting as streamlined as possible, but not at the sacrifice of losing a functional front of house system that is intuitive and simple to learn for the ever rotating line staff and management that actually have to deal with day to day operations.  $95K w/o modules
Modules – total them all up and it will run $260K or therabouts.

Northwind Maestro – I like this system, because we have made them do a couple builds where they are interfacing with industry standards for the modules… So instead of relying on an entire system that has multiple weak spots… IE Agilysys’ Visual One F&B & S&C weak spots, or Micros’ S&C, Spa, and Accounting weak spots, etc… you get to build out a vetted system with Delphi, Micros F&B POS, MAS 500 Accounting, and Harms Millenium for the spa. It does create a lot of extra work and communication, but you can rest assured that from front of house to the G/L and beyond you will have a solid system that can do a lot.  $80K w/o modules.  Modules -  The total cost ends up being around $180K – $210K with the benchmarked modules. So it is cheaper as well.

A word about interfacing

When you are interfacing, you have to realize that when Opera or Par/SMS talk about an integrated system, they aren’t really talking about an “integrated system” like Agilysys Visual One.  That one is wholly and completely tied into all parts, while the other systems are simply *interfacing* with other modules.  That means when you are choosing, it is just as easy to go with Delphi and an XML interface for inventory management as it is to go with the preferred S&C module that the company offers.  This is because those modules weren’t built with the PMS in mind, as much as they were bought as 3rd party programs and co-opted by the PMS to work with the system.  All this means is that you should pick systems you are comfortable with, and not feel the need to be a partisan picker, and go with an entire bundled system.  This is why we have gone with Northwind Maestro… it’s a great windows based PMS that integrates well with all the industry standards.  I also didn’t feel the hard sell from them as I did from other vendors…. Northwind wanted us to be successful so they looked successful, instead of just selling what they offered.

I am really happy with Northwind Maestro.  It will be the most affordable of the lot, and I am pleased with them across the board. The modules aren’t my favourite, so usually we use Maestro and go with Delphi for S&C, Micros for F&B, Mas 90 (should work, but mas 500 is better, a 2 way XML interface, and simply better reporting/much easier).. and HARMS MILLENIUM for the spa… because Harms is awesome, and I don’t think there is a better spa software anywhere.  At least not yet.

And that’s my two tech cents!

You know, I really admire Tom Sargent.  I have known a lot of developers, but very few have had such a long-view approach, coupled with steadfast determination.  Even those I know that approach that level of professionalism don’t have the empathy, humanitarianism, self awareness, or committment to the integrity and vision.

I know I sound like a fanboy, and a bit cliche, but if any of you realized what he went through on his last green-build/historic rennovation/national park land reuse… you would understand.  Very rarely do we see a holistic approach to development, with as much concern for the land use as well as the people that are impacted by it.

It is no wonder why he is featured in this month’s Contract magazine, and I post those articles here because… well… it’s important.  For any developers, architects, designers and more… he really has a wonderful philosophy to this madness that we “do”.  I think his words will make you think, and the ideas he is promoting are relevant, if not before their time.  Maybe not all that too soon… apparently commercial builds are still heavily enthused and leaning towards green builds, regardless of the economy.  This editorial from Contract says a lot about that… and about people like Tom that make it a priority to “lengthen the timeline” of development mentality, and focus on the Native American “7th Generation approach” in a business sense.

Tom is trying to spread some very big ideas around… magnanimous in their complexity, to be sure.  But huge in their forward-thinking, dedication to building community, and creating sustainable structures that are functional and practical, aesthetically pleasing and innovative.  Actually… all the people at Equity Community Builders in San Francisco have put together some amazing work.  So three cheers to Tom, and a moment in the spotlight for one of the most humble people I have ever worked with.

PERSPECTIVES, with Tom Sargent; Principal with Equity Community Builders

The yelp post garnered 5 times as many views as anything I have ever posted, and stimulated a lot of interesting conversation on multiple outlets.  This is a follow up, clarifying a lot of stuff… might be too long, but I will let it stand.  Thanks for the dialogue, comments, emails, etc.  Be Well!

I have apologized for long posts before.. but this is ridiculous.  Actually.. if you need to blame anyone for length, chat with the thoughtful Jeff at http://www.IwantMoreFood.com.  He asked some great questions.. I was replying in an email and then it just went forever.

–

I want to go on record saying I am an ardent yelper, and *love* *love* *love* it. Beyond the frustration of losing reviews with little warning, it is a fantastic food blog for me. With my memory, I need all the help I can get. However we have seen so much in this web world fail in the blink of an eye, and it causes concern to many people with how Yelp has responded to the media, user and business owner accusations, etc.  However, it doesn’t detract from my passion for the site.  I generate content like a madman. My canned response is always – I am excited to share this with people for years to come. I can’t wait until my kids comprehend it, and I can share the first meal I ever had with their mother by sending them a link and reading it while we tell the story. It is sort of a magical place to have fun, interact with people, build *real* local community, etc.

But I am in for the long haul, and I have seen so many sites that had a foothold get blown away by newer sites that had fixed the problems that existed in the failed site. Then there was that damned bubble.  Remember webvan? Kosmo? There is another one coming, and it is waiting in the halls.  Even the Richter Scales know that with ver 1.1 (by the way I am sure you have seen it, but that is the funniest thing you will see today, sung to Billy Joel’s “We didn’t start the fire”)

When you ignore those inherent flaws, you become obsolete and people quickly move from you to the “next big thing”. In fact, I think what has happened to Myspace vs. Facebook is incredible.  MySpace lacked accountability, verifiability, and transparency…. Which is why Facebook took off. They improved on MySpace’s flaws, and people bailed on myspace immediately. I am not suggesting that will happen to yelp, but trust is what social media is all about… and if it wavers for too long people give up. I have seen this concern constantly on the yelp boards… frustrated, confused people not getting answers. I am also not saying Myspace is dead, but you can draw your own conclusions. I don’t know anyone that even talks about it anymore. What’s more, when Facebook started challenging users with subversive marketing ideas like Beacon, without full transparency it backfired big. In fact, with their latest update I personally see long term trouble for brands (see this post: http://www.hrabaconsulting.com/blog/2009/04/09/facebook-all-atwitter/) and their ability to create commerce within the site. But that is neither here nor there.

The point is… I think yelp will be fine. They sure as hell don’t need some random hospitality blogger’s opinion about it…. But I am sure they have a foothold enough to carry them on. The question about whether it makes money, integrity or not, is a important. It’s still not profitable, and they have to figure out how to make it so. I know of hotels jumping off the advertising bandwagon on yelp, as well as business owners and users frustrated with a lack of explanation, clouded in this secret algorithm. Integrity is key, but for now the shoulder-shrugging reality may be that making money is more important. However, the money won’t be there in the future if no one trusts them. Integrity does *not* make money, but sacrificing or compromising integrity will lose money fairly quickly. If the company doesn’t focus on the following specific issue, it will be in long term trouble:

****It isn’t whether their business practices are unethical or shifty – it’s that they appear that way to so many people****

They aren’t shifty. They are just some young people trying to build a useful site. That’s the facts. No conspiracies, no conscious removing of reviews, no favouring of sponsors……

But the *PERCEPTION* is that there is something wrong, and until they come out and are fully accountable for this *PERCEPTION*, whether true or not, they will be digging themselves a deeper whole. They need to own these issues, and start to come to terms with them.

As users and businesses, instead or rolling over and allowing them to damage their brand by ignoring this stuff, we need to hold them to task. I got worried posting that last post simple because yelp doesn’t like dissention. They have an interesting philosophy, and it does seem they prefer a head in the sand mentality of celebrating their cult-like followers, rather than ever really engaging the people that have concerns or questions. In fact, even prior to my post I had been somewhat unwelcome in that I am constantly critical of these business issues. The members of yelp often like to make fun of it, not realizing that sometimes…. Yes…. “the internet *is* serious business”, mostly because I forget the difference between being inside the community, and having an industry bird’s eye view.  That is a balance I need to work on for the benefit of people that tire of my biz, or vacuous, commentary. They want people to mindlessly endorse them, as if they were followers of a religion. I never was too good at that, and yes my teachers got upset with all my questions too.

The point is…. Some bloggers and so-called “experts” target yelp because they *really* dislike it. I ask questions and bring up points because *I love it*, enough to forsake that “love it or leave it mentality” and try to help identify problems so we can work on solutions. I got worried about posting that stuff…. but it is all real, it is all pretty damning of that algorithm, and it doesn’t seem like something they want to deal with.

However… they are the *best* out there by far. It isn’t even a question. That is why so many people are trying to take them down, target them, etc. It also isn’t their fault that business owners with absolutely no idea what “social media” is, lash out, and make baseless accusations about their business practices. The idea that a social media review site would have some secretive, unethical behavior is asinine, conspiratorial, and not very helpful. However, it is a very tenuous and precarious position backing and protecting an algorithm that is obviously, in many eyes, flawed. In fact, it’s dangerous. Anyone that uses the site knows the search algorithm is, for all intensive purposes, worthless. Identifying the problem is a first step… and I really dislike naysayers and dour types that bring up problems with no solutions, but I have little that I could help with, really.

Crowdsourcing? Getting a large group of users to commit to auditing reviews from newer users, etc? They used to have moderation, maybe it’s time to bring it back in some form. Maybe an independent expert or consulting group to vet the algorithm’s stability or functionality? This is where I sort of lose it… I am not nearly as qualified as some of the incredibly smart people at yelp to offer advice. Most social media sites like twitter or facebook have multiple blogs. I am not so interested in the cult of elite on the CEO blog as much as I am with technological advancements, internal ethical dialogue, etc. When there is a glitch on twitter, twhirl, facebook api, etc….. you know about it. There is constant communication that is open, honest, accountable and humble. I would love to see this with yelp… letting the programmers inform us of problems, advancements, etc. Of course, I want to help, but don’t know where to begin.

As for yelp… I don’t even know if this is something they are working on, or if they are too focused on marketing and stabilizing a business model that, for all intensive purposes, might not work. Ad-model is failing for a lot of social media, but yelp has a grounded network based in the real world… which totally alters that model. If that is their main focus right now, they seem to be working day to day instead of having a business model that is long term and thought out.  It’s possible I don’t have a clue, but lately it does seem they fly by the seat of their pants.

As for Stoppelman, the company just hired PR to deal with damaging press, but would still go onto blogs. It looked very bad and defensive. I do think they have recently had a dialogue about how they interact with people, especially critics, online as well as how they respond. In the past, when someone outside the “yelp” community remarked, yelp (read “he”) snapped back, often at the messenger, and not the message. I made a joke about them not keeping up on their Sophocles.

It doesn’t maintain high regard or put yelp in favour of the travel/hospitality, food, or social media ethics sphere.  I don’t even know if it is important…. I think what yelp should continue to do is precisely what they did with my previous post – ignore it. If the issue that is brought up is so compelling, simply respond on the yelp blog. This seemed the course set by the PR people for the East Bay Express article (or at least a great decision by Mr. Stoppelman) and it worked fairly well (other than attacking the reporter, instead of the accusations).

In the end, it will be fine… but it will take the community to police their lack of openness and forthrightness in regards to their business practices. People who really love the site should be able to recognize it’s merits, ponder it’s flaws… have an open discussion about it…. And work together in improving it. As of now, that isn’t happening and that is frustrating to a lot of people.

Pardon this huge ramble.  I have had so many private email messages.. this has sparked controversary, discussion, interest…. and hopefully attempted to create an open dialogue about what is going on.  In fact, this has attritubted to some of the rudest email I have ever gotten, because people are passionate about this.  All I wanted was proper discussion.  I am big on data, so before making some random claim, I knew I needed to back it up.  Now that the dialogue has started, I am incredibly interested in hearing more of what ALL of you say.  I will end with this……

It’s funny that Unilever’s CEO was recently chiding businesses for not realizing that their brand is not their own, and includes Ad Ages new rules of marketing.  It is for all brands, not specifically online…. but I think it is wise for anybody in this new media world.  I think it says a lot.

1. Listening to consumers is more important than talking at them. As Mr. Clift said, “We may be ahead of our competitors, but we’re most definitely behind consumers.” The consumer is not a moron, she’s the person defining your brand.
2. You can’t hide the corporation behind the brand anymore — or even fully separate the two. Even this editor’s creaking computer only took 0.13 seconds to show that Philip Morris is owned by Altria Group. Welcome to radical transparency, where bad corporate behavior will damage your brands, and vice versa.
3. PR is a primary concern for every CMO and brand manager. If “marketing” and “PR” are not the same department, tear down the wall. Spend time deciding whether PR is underleveraged in your organization.
4. Cause marketing isn’t about philanthropy, it’s about “enlightened self-interest,” as Mr. Clift puts it. That doesn’t mean it doesn’t count. Don’t be ashamed of your profit motive, because great branding and doing good are increasingly one and the same.
5. Social media is not a strategy. You need to understand it, and you’ll need to deploy it as a tactic. But remember that the social graph just makes it even more important that you have a good product. Put another way: The volume and quality of your earned media will be directly proportional to the impact and quality of your product and ideas.

–NB: recent removed reviews seem to have been flagged by the community, a bunch were taken down at once, and they explained it was somewhat of a “chain” review of a 7-11.  I was shown the text, but not how many reviews.  I am totally fine with them taking them down.

NB: As soon as Yelp sees this, they will be working on fixing these specific errors, which is fine.  The point is that these exist… endlessly… throughout the site, and these were just the obvious ones I catalogued in a few hours.

–

I was so pleased to see a 2 star review disappear from one of my client’s pages today… one that sponsors yelp.  I doubt that means anything, because the below problem looks as if it follows zero rhyme or reason.  This looks like that algorithm really does have a secret aspect about it…. that it is irrevocably flawed.

So… this isn’t about yelp being unethical.  This isn’t about deliberate unethical behaviour.  All Jeremy Stoppleman seems to do is look for blogs, waiting to defensively react against criticism… usually ending with the incredibly vapid “it’s the algorithm and it’s secret” argument.  But really, that’s harmless.

However, that argument might not hold water anymore guys.  Below is an afternoon of research, and it is hardly complete.  This could go on forever.  Hopefully… you will recognize that this is enough proof that the integrity of yelp, and it’s functionality, is endlessly flawed.  This is about a faulty algorithm, no more no less.  The below links are all too self explanatory…. pointing out profiles with reviews that are suppressed from business pages.  Whether or not it is about “maintaining the integrity of yelp” as they so often suggest is moot….

These are real people, and real reviews.  In the below documentation, I have often countered the suppressed review of a certain business by highlighting a reviewer that has a nearly similar profile that actually *has* a review posted.  What that means is that many of the profiles that have suppressed reviews are no different from reviews that are posted on the site (sometimes no avatar/pic, sometimes very few reviews, sometimes long periods between reviews)

Many of the arguments against the below research will be:

1) that they don’t have a picture…. but many of the posted reviews do not have a pic as well.  You have to start out with a fresh profile at some point.  If they aren’t giving a voice to people, why would anyone finish updating a profile anyway.

2) Yelp is protecting against “one hit wonders”…. but that won’t stand up, in that many of those people have completed profiles with many reviews that are totally legitimate.  What’s more, some businesses pages have multiple one hit wonders, just to have one of those suppressed?

I also find it interesting that, after a person voices concern on a talk thread…. the reviews magically appear.  I am not suggesting that yelp is reviewing talk threads and acting accordingly when people bring this issue up, but look for yourself…. seems a lot of the voiced reviewers’ concerns have been placated since the beginning of those threads.  I guess it is tantamount to yelp having the mistake brought to it’s attention, and fixing that error.  Admitting that the algorithm is flawed is one thing… but having to constantly correct and second guess, or act as oversite, sort of lessens any integrity or trust I had in the site.  If I have to sit and think about whether it is honest, or whether it can be trusted… well isn’t that a problem?  Many yelpers I have spoken with don’t think so.  You decide.

I have also supplied links to other talk threads where people are simply confused about flagged reviews, or why their review was taken down or isn’t showing.  I added some confused businesses to boot.

If this is your algorithm yelp, you have built your business on one of the most flawed I have seen.  Just my two cents.  If real reviews by real people is what this is all about, yelp has some serious explaining to do about the incredible flaw in their model.  I don’t think this is fixable, and I don’t think they can defend it.

Frankly, I love yelp.  I hope they can.  I think they may want to start.  I knew this wasn’t out and out unethical behaviour… it was just a deeply flawed model.

If you have any odd situations like this…. a review on your profile not existing on a business page, or confusion of the lack of transparency or communication on yelp’s part… let it be heard.

I may be way, way off on this.  But the below is interesting to me.  I hope it is for you as well.  While we wait for transparency, communication, openness, earnestness, and any ounce of interest in clearing up the confusion… Jeremy will pop into any conversation acting defensive and contradictory.  Instead of being defensive and having to always manage bad press… why not just fix it?

Funny that yelp helped destroy the original marketing model so you can no longer damage control or control any “message”…. which is precisely what yelp is retroactively doing when things like this come up.

I have said it before… you need to be an ethical business that consumers identify with, and have an ethos that draws people to “opt-in” to your offering… and not trick people into thinking you are something you are not.  If you aren’t ethical, or you aren’t run well… people will find out.

It’s possible that yelp is both.

Below was sent to “elite” (read “drunken”) members of yelp. This is INCREDIBLY exciting. This will legitimize yelp, and I have to say this is the most important development in the last couple months in social media. This is huge, exciting, and I am very happy to explore this with my hotels. What a PHENOMENAL tool.

———–from yelp————

As a member of the Elite Squad, I wanted you to be among the first to know about a new feature that is rolling out in about a week or so. It’s called Business Owner Comments, and as the name suggests, it will allow a business owner to write a public Comment after any given review. Comments will be the latest addition to the free Business Owner’s Account that any business owner can sign up for, and that lets them add Photos, post Special Offers and create an ‘About This Business’ section (for more info, read up *here*). As a reviewer, you’ll be emailed each time you receive a new Comment, just like when you get a Compliment.

The goal is for all Comments to be pleasant and useful. For example, if you wrote a glowing 5-star review some months ago about your favorite pub, in which you mention drinking Harp because they didn’t carry Guinness… both you and other readers would probably be happy to see a new Comment saying, “Just got our Guinness tap last week. Hope to see you soon!” Here are a couple other example Comments.

Comments will NOT be a forum for a business owner to disparage a reviewer. As you’ve probably seen with Private Messages, most business owners are actually appreciative of honest and constructive opinions, and realize that being rude to customers is — both on and off Yelp — bad for business. But for those few ill-mannered folks out there, we have come up with some fairly strict Comment Guidelines — and our customer service team will remove violating posts.

Brands on Facebook are nothing more than dissonance now.  Whereas before they were meaningless, and the pages were little more than non-functional, limiting, and fairly non-interactive static places….

….now they are annoying, interruptive, and totally dysfunctional.  The new layout for facebook has turned personal conversations into nothing more than reality TV with advertisements at random intervals. Brands and Pages used to be benign, and it was obvious there weren’t *doing* much of anything.  But now people look at these pages as malicious marketing that is getting in the way of their social network.  The furor I have seen is remarkable, but I hadn’t experienced it until today.

I have three facebook accounts… two for work, one for personal.  Because I sorta “work” I don’t get “personal” too much… but I was on there this morning jibber jabbering, catching up, being a voyuer… and all of a sudden one of my *FAVOURITE BRANDS EVER* pops up with a blurb about an art showing.

I won’t say what it is; but it is sassy, salacious, lurid, and compelling.  So a little blurb pops up into my stream.  Remember…. I love this brand and what they do.. sort of punk chic stuff.  Maybe I do get personal, and will let you know I don’t mind salaciousness.  But, we are talking about something that should be compelling to my core.. a brand I have followed for years, enjoyed, interacted with, and whole heartedly endorsed.

I found it annoying… but brushed it off like a harmless spider on the table.. ignoring it but knowing it may come back.  Then another popped up… and another.  So what did I do with my favourite brand’s page?  I immediately unfanned it.  Immediately.  I don’t want that information in my personal, closed network of friends.  If I want information on the brand, I will search it out… go to the site… peruse the conversation.  But I don’t want it in my feed.  It was just total dissonance, and totally irrelevant.

Facebook…. you just made a terrible mistake.

I know I know… all these bloggers like to shoot from the hip and say, “critical fault”, “nail in the coffin” nonsense…. but just like most emotive reporting (if you want to call it that), it really is just a storm of hot air brewing in an empty tea kettle. Okay I know it doesn’t totally make sense, but you get the idea.

Video didn’t kill the radio star, and the earlier, initial report of radio being crushed by TV was premature. They found a symbiotic relationship, and their niche.  FB is an a/v laden TV, while Twitter is more like visual radio.  The analogy is flawed, but they are two things similar that are fundamentally very different…

Facebook made an error thinking they were like twitter.  And albeit all of *us* (the eyes that hit this are undoubtedly thoughtful – industry eyes well versed in social media) know that twitter and FB are different…. FB didn’t realize that.  I am not sure why, but in wanting an open stream for brands to interact with users, they neglected to see the difference between a closed and open network.  All this immediately before their CFO leaves?  Maybe they finally realized that the ad model won’t help them reach profitability?  Maybe because the ad model is failing, as Mr. Khan from JP Morgan suggested?

They want a page’s wall to post to user profiles, effectively allowing marketing and more “business” to happen on facebook…. they want a brand’s wall posts sitting in the middle of a private stream of communication within a closed network?  I hadn’t really thought about it during the initial changes, but it just seemed odd.

Twitter is an open stream of networking and collaboration. People ask strangers questions about how-to, products, and more.  FB has a closed network of friends interacting about personal things. This difference is obvious, but let’s talk about FB’s myopia in attempting to capture all of social networking, the “there can be only one!” mentality.  This has caused FB to move into territory that is unfamiliar, and it is seemingly eroding the base of trust and interactivity that made FB so popular to begin with.

Why did Myspace (maybe this is premature) fail?  The answer is that there was no accountability, no verifiability, and no real trust… which is where FB swooped in and confirmed status based off real world markers. Is this person real? Where do they work? Where did they go to school? When?  What’s their birthdate?  Facebook found a way to solve that accountability problem, which gained them quite a bit of trust with users. This trust has been challenged multiple times with things like Beacon, etc. The public outcry is because FB was famous for having built a trustworthy social network and then started eroding that trust by attempting to inject business and marketing. Apparently, people didn’t want that on FB.

What’s funny is that the Beacon outcry was a huge disaster, but I am thinking it was a gain for FB because they were able to immediately rectify a big problem noting canceled accounts and the media buzz.  In light of this new issue, I think the erosion of the users trust will be just as severe, if not more so… but in a long term, sustained migration away to new networks (that are inevitably on the horizon).

The new problem might take far longer to discover… instead of a large group of people complaining, closing accounts, causing a stir immediately…. you are going to have one or two people at a time slowly get frustrated with “advertisements” and walk away, or unfan pages making any business commerce obsolete.  I still would love to know what that commerce is supposed to be anyway, but I guess that is a different post.

Now, I am using one of my largest, most popular brands to run an experiment for our fans:

“Cheers to all our fans! I would love to know your honest opinion. Facebook changed without asking all of you what *YOU* want. Do you find it an imposition or annoying to see pages interacting with your closed network of friends? I won’t post on the wall if it is dissonance. Please let me know!”

I will update you as I find out more information, but the test will be successful. Either I find out what they think, or they don’t say a word and I further note that no *real* or *meaningful* interaction happens on Facebook in regards to business or brands.

It *might* be fine for posting events, but I really didn’t think anything more than long term brand building.

Now I am thinking it is not only *not* that… I think their new layout might actually kill any ability to market or further a brand.  Enough wall postings and people will be unfanning pages immediately.  “Why did I fan Tabasco hot sauce anyway?”, “He’s a great musician but I don’t need to know everything he is thinking!”, or “I love that hotel, but who cares about events I can never go to?”, ad naseoum.

Whatever the case, these are my ramblings.  I am one of the most patient, accepting, and brand aware people out there… and I was annoyed to the extent that I immediately acted, an unfanned a page.  If you have a guy like me doing that, no telling what people less tolerant of marketing will do, and how quickly they will react.

I don’t think this is anything Facebook can fix… I just think it is something we will have to ride out and watch.  Any comments on this would be appreciated!  I am not going to shoot from the hip and suggest this is doom for Facebook, but I will suggest that this will rapidly become a problem.  Pages were totally benign before; now they are, frankly, annoying.  I know I am not the only one that thinks so… what about you?

I haven’t been able to really wrap my head around this until today, and would like ANY industry advice or thoughts.

I am a hotelier that is attempting to simplify our lives as SMO, CRM, etc.

With all these accounts and things to keep up with, I want the simplest method of updating and keeping my fans up to date with our news, events, offerings, and great pics, etc.  I was boggled as to how to best manage this, considering we are constantly posting one article to multiple pages and sites.

So… for now… this is the best practice for syndicating and streamlining your SMO work.

1st – use yahoo pipes to grab any aggregate content you need… meaning flickr photos, etc.  There are a lot of things to build and use here, and I am still learning, but it is simple to – at least – create automatic feeds for photo uploads and other information.

2nd – take all possible feeds and mayhem you have created with yahoo pipes and parse those feeds into twitterfeed, so that all content you are interested in (external corporate blog, tags of flickr pics, etc) is fed into your twitter account.

3rd – Siphon the single twitter RSS feed into your FB page by importing it through the “Notes” settings.  Notes posted through the RSS are, SEEMINGLY, posted to the wall so that all our fans and followers are able to see them.

therefore… any tagged photos, blog posts, newsfeeds, press releases, etc can be fed from pipes into twitter, therefore creating one RSS feed that will distribute *all* aggregate data through the RSS for your twitter page.  Taking that and embedding/importing it into your Facebook Page means that you only need to post on twitter, publish your blog articles, and make sure all these connection are up and working.

NOW.. correct me.  Is this the simplest and most elegant way to manage content, push content, and create less work through simplicity?  Let me know!