Latest / Suite Spot: A Hotel Marketing Podcast / 143 – TMG Hospitality Trailblazers: Shruti Buckley
Transcript
- Ryan Embree: Welcome to Suite Spot, where hoteliers check in, and we check out what's trending in hotel marketing. I'm your host, Ryan Embree. Hello everyone, and welcome to another episode of the Suite Spot. This is your host, Ryan Embree. We've got another great episode for you today continuing our TMG Hospitality Trailblazers series. If this is your first time, this series is all about the people and groups that are pushing our industry, our great industry forward, and I have such a special guest here to celebrate another impressive and awesome milestone. Shruti Gandhi Buckley brand leader of Hampton by Hilton. Shruti, thank you so much for joining me on the Suite Spot today. Shruti Buckley : Well, thank you for having me, Ryan. I'm really excited about our conversation. Ryan Embree: Yeah, it is exciting. And before we get into that, some of that exciting news and the exciting, incredible milestone that this brand has hit. Let's talk to you, Shruti, this is your first time on the Suite Spot. We love hearing stories from hospitality professionals, the webs and weaves of how people got into hospitality, how it kind of infused into their DNA, as we have heard so much in our industry. Share with us a little bit about your experience and the journey that led you to Hampton by Hilton. Shruti Buckley : Yeah, of course. It's really interesting. I had somewhat of a unique path into hospitality, but at the same time, I actually had some exposure at a very young age. My uncle used to own a hotel in New Jersey, and I actually used to spend my summers there helping out at the hotel, sort of understanding the guest piece of it behind the scenes, stacking the coke machine and folding towels, things like that. And that's when I was very young in elementary school. Years went by and when I graduated from college, I actually started my career in consumer product brand management and marketing. So I led global brands and businesses in a variety of different industries. So I started my career out in the food industry with Nestle. I then moved to Luxury cosmetics and I worked for Unilever and Estee Lauder and Chanel. And then I loved to joke with my friends that I traded in my Jimmy Chews for Converse sneakers and Birkenstocks and actually made my way back to D.C. which is where I'm originally from, to work for National Geographic, believe it or not. So I went from Chanel to Nat Geo. They had a very large product division where they had branded merchandise and retail, and I had a really great opportunity to work there for many years leading many of those efforts on the product side. And being in DC as you know, it's known as the hospitality capital of the world, actually had several friends that were in the hospitality industry and for a few years they kept saying, Shruti, come talk to us. We think you'd be a really great addition to the team. You've got really interesting strategic brand background. A lot of our folks are on the operations side, and it would be really interesting just to talk to you to see where this might go. And that is actually what led me into hospitality. So I actually started that part of my career with one of Hilton's competitors just down the street, in fact, for many years running one of Hampton's competitors. And I did that for eight years. But candidly, after chasing Hampton for that many years, I said, well, if I can't beat Hampton, I might as well join them. And was really fortunate seven years ago when Hilton called and was able to make my way to this fantastic company and lead, what many would call is the best brand in the industry. And I've been doing that for seven years and recently took on oversight for the our newest brand called Spark. Ryan Embree: Well, I'm sure you learned a lot competing against the brand too, right? Like I'm sure that gave you a unique perspective to be able to come in and probably gave you some insightful knowledge being on the other side of it. But I wanna go back to where your hospitality career started, and I can't overlook that enough. The cool part about our industry is we're all travelers from as young as we can walk, right? And hotels are such a magical place when we're young and we get to travel somewhere different. So to be a part of that story and to see families which I'm sure Hampton over the years has invited, you know, hundreds of thousands if not millions of guests in to have some of those incredible memories. And that's what we're here to celebrate, right? This is a 40 year milestone for this brand. Congratulations to you and your team. I'm sure that the celebrations are not gonna stop, but, share with our audience a little bit about the history and backstory. It's so unique to kind of talk about these brands and how they come and the ideas and how they've evolved over time. Shruti Buckley : Well, thank you, Ryan. This is actually one of my favorite topics. You know, being a brand enthusiast, it's really fascinating for me to see a brand like Hampton 40 years young and how it's been able to sustain this incredible legacy of leadership for that long. In fact, when you think about the world of brands, right across all industries, there really are very few brands that haven't had a lot of ups and downs, right? Hampton has been this steady and consistently delivered against performance for almost throughout its entire 40 years of its life. And you know what started out, many folks don't actually realize this, but Hampton actually started out as a small kind of roadside motel brand, right? With exterior corridors, and and more along kind of the highways of America. And as time went on, Hampton was actually able to move up market and eventually created what we now call the upper mid-scale category. You know, in the eighties when you, you think about that time there were, there were full service hotels, and then there were economy hotels, and there really wasn't much in in between that. And I had to realize, hey, you know what? Guests actually are willing to pay more for an upgraded experience. We believe that to be the case. And so over time, through years of innovations like introducing free hop breakfast, the waffle free wifi, um, creating more functional and elevated design, and then taking risks, like introducing the industry's first a hundred percent money back guarantee, and then keeping a really close king focus on service and hospitality, Hampton was able to move up market to create a better product, a better guest experience, and that ultimately drove higher rates and incredible guest loyalty. So, you know, when you think about this incredible legacy, right? It's, it's sort of a longstanding commitment of innovation, quality, consistency, and service. And that's really been kind of the secret sauce behind creating this power brand. And you know, you, Ryan, you asked earlier or you made mention, you know, when you're running a competitor, you're always looking at, um, or you're running a brand, you're always looking at who your competitors are. And I studied Hampton, right? I wrote right papers on Hampton, um, would have to present to my last company on why Hampton continued to be such a leader. And it was those pieces of the pie that I just, I just talked about, right? That quality, innovation, the commitment to consistency, that, that real sort of breathing life into service and what that meant in that kind of mid-tier product. And that has really created this unique brand that has become a leader and stayed the leader, you know, for almost four decades. And Ryan, what is really great is that's driven our growth. We are now 3000 hotels strong across four continents, soon to be five and in 41 countries. Ryan Embree: Well, it's absolutely incredible because right in, in the theme of what this spirit, uh, of the series is all about, which is TMG trailblazers, it really sounds like the brand itself was a trailblazer and pioneer into that upper, that segment there and really kind of carved out itself. And probably is why it is such a staple today. And you know, as you've mentioned, Trudy, that you know, 40 years is no easy feat. You have to have buy-in from a lot of stakeholders. And we've learned that with the good brand, it has to be the, the guests, the consumers, right? But it also has to be the developers, the owners that are interested in actually building these hotels, right? So why do you believe there's just been this synergy between this brand and why guests and, and developers and owners alike all love it so much? Shruti Buckley : Yeah, you know, it's interesting, it's almost creating this balance between all of the different stakeholders. You know, we're working and as we think about the brand and all the different things that we do to drive brand performance for the guests, for the owners, for the developers, there are many things that sort of come top of mind. I think first of all, there's been a consistent investment in Hampton's guest experience, right? Through the innovation that I talked about through marketing and a hyper focus on service. So we invest a lot in our service experience and training of our team members, and that really makes our guests a priority. And that's really what has garnered unparalleled guest loyalty. And it's why Hampton has more five star social media reviews than any other brand and why our guests are willing to pay a premium. So that's the guest side of it. But what's interesting is that loyalty and that desire, or the willingness to pay more for great quality then has driven really great market share and RevPAR premiums. And that's why we're recognized as the number one hotel brand franchise, right? The operational models really strong, the cost to build is favorable, and all of that drives great returns and margin performance for our owners, right? So they work in combination for each other. And on the development side, we continue to deliver efficiency with our prototypes. So in fact, we just launched, we're super excited, a new North American prototype and renovation package both for the Hampton Inn and the Inn in Suites. And it's more flexible, more favorable and the cost to build. And so then that drives, the fan favorite from a development standpoint, and so we, our goal is to always set the bar and continue to raise that bar, you know, for all the various stakeholders that we have. Ryan Embree: Yeah, I love to hear, even 40 years later, there's still evolution, there's still innovation going with this brand and, and especially adapting to, some of the things that you just said. A lot of developers are probably just, they're rubbing their hands together because that's what they need right now. We're going through unfortunately, a staffing shortage right now. Guests are looking for more flexibility. Developers are looking for different ways to build and obviously with rising construction costs. So to be able to still have a legacy brand that everyone knows that reputation, everyone knows what to expect when you come to a Hampton, but also have these new things that are still adapting to where we are in 2024 today, I think probably puts you in a great position for future success and growth. So, you know, for me personally, Hampton is synonymous with a great stay and equally great breakfast. You brought up the famous Hampton Waffle. I mean, that is so cool. You know, there's 40 years of a brand, but there's a couple singular things I think I associate with Hampton, still a lot of guests do. One being this waffle. Can you talk a little bit more about this staple breakfast item that's really been associated with the brand and how social media has really contributed to its popularity. I know you guys definitely lean into that over there and embrace that. Shruti Buckley : We absolutely do. And the waffle is definitely, one of the fan favorites and certainly something that has become very synonymous with the brand. So, while service and consistency really remain the heroes at Hampton, breakfast is something that is hugely important to our guests. We actually have over an 85% take rate on our fabulous breakfast. So it's really important that we double down on high quality food items like the scrambled eggs, the yogurt, fruit, bacon, other delicious protein items and healthy items that we have. But our famous Belgium waffle was introduced in the industry as an industry first in 2009, but our favorite famous Belgium waffle was introduced as an industry first in 2009. And as I mentioned, it's become synonymous with the Hampton brand. You know, when you think about a waffle, right, what do you think about it makes you smile, right? They're fun, they're warm, they're tasty, and kids and adults alike, they love that actual ceremony of making the waffles and that smell of the waffles that kind of wafts through the hotel definitely creates an appetite for all of our guests. So, it was really important as we think about breakfast, how do we continue to make the Hampton brand relevant across all of our guest touchpoints? But breakfast being a really important part, we started to focus on the waffle, right? So we always look every year at our breakfast program on, what are things that we wanna remove? What are the things we wanna improve on? And you know, a couple of years ago we said the waffle, you know, how do we invigorate the waffle and do something new with it? And this idea of waffle flavors came up and we said, well, let's test it out. Let's see what happens. So in fall of 2022, we actually introduced pumpkin spice, waffle. Pumpkin spice, you see it all over the place during the fall season, whether it's coffee flavors, all different types of things. And we said, there could be something here. And it was an instant favorite Ryan. People loved it, and it created a buzz. It gave guests and our hotel team members something fun to talk about. And it became an instant hit on social media. So much so that even Paris Hilton came to us and became a fan and now is featured in our social media waffle campaign, which is really great. So since then we've been introducing new flavors, several times a year, including red velvet that we've done for Valentine's Day strawberry and apple cinnamon. We currently have the fabulous lemon waffle just in time for summer, refreshing lemon and more to come. So it's really been an exciting journey that the waffle has gone on for Hampton. Ryan Embree: It's, it's so cool. I love that we just talked about like waffles for a couple minutes, but it's so important and you know, hats off to you and your team on the creativity, because you're right, there is a ceremony there of, as someone who is not the best person at cooking, to just to be able to pour that and be a part of that experience, I think that subconsciously does something for you. And I think it makes it a part of your hotel stay. Shruti Buckley : It does. And actually what was really nice is there's a service element because oftentimes they have a breakfast attendant that's actually there to assist our guests with actually making a waffle. And that's a great opportunity to strike up a conversation or ask how is your stay, welcome them to the hotel, thank them for their business. So it actually was a really nice opportunity for us to create a dialogue with our guests centered around the waffle. Ryan Embree: Yeah, no, absolutely. Brilliant. So a lot of positive side effects of the Hampton Waffle and excited to see what the new flavor you and your team might have up your sleeve there, but, you know, another trademark unique to Hampton, and you brought this up, Shruti was the one hundred percent Hampton guarantee. And I truly believe that it was this campaign that really went a long way in marrying the Hampton by Hilton brand with the exceptional customer service that you've been talking about. Can you talk a little bit more about this initiative and what this means for the brand and its reputation? Shruti Buckley : Yeah, sure. Of course. You know, initially, the Hampton, one hundred percent guarantee was launched in the late nineties, and it was really intended to give consumers confidence in a category of hotels that at that point in time wasn't really known for reliability. And the idea was to create something that essentially communicated that we at Hampton are so confident that you as a guest will have a great experience at our hotel, that we're willing to refund you a full night's stay if we don't live up to your expectation. And what this did is it got consumers talking, it got new consumers into the door, and it gave consumers confidence they could trust Hampton. But more importantly, the one hundred percent hands and guarantee actually became the bedrock of our on property team culture. So the guarantee really motivated our hotel teams to kind of double down on service and cleanliness and commit to creating an experience that was truly best in class. And it really created, you know, what we like to call a service culture movement within the brand that became so strong that we even gave it a name, Ryan, we call it Hamptonality. And it's really how Hampton has become this beacon of humanity, right? It connects people of all different races and cultures and backgrounds, and our culture is about taking care of each other and also taking care of the guests. Because when you think about it, if your team members are happy and they're in a great environment and they are well cared for, they're in a better position to take great care of their guests. And then over time, what we found is it was less about money back. What our guests were telling us is, you know what, we just want you to make it right for us. And so we evolved from a hundred percent guarantee to what we call the happiness guarantee. Making you happy makes us happy. And again, it's this, it's creating an emotional experience for our guests and creating a real dialogue and a relationship between the team members and the guests. And it's been a home run. That's really what has created a big differentiation for Hampton, is that true commitment by each one of our over one hundred thousand team members around the globe, to delivering against the guarantee. Ryan Embree: Yeah, another trailblazing. I would say, a point in this brand's history. I would've loved to have been in the room when this idea was pitched or even maybe said to some of those individual stakeholders when this was first rolled out. But I think you're right, Shruti, two of the things that we've learned on this podcast today is, maybe some side effects of these initiatives. It had just as much effect on the guests as it did on the employees of Hampton by Hilton and the brand itself. And then overall, I mean, that led it to a place of success and growth that we've seen today. So it's so cool to kind of see how these little changes here, you think it's gonna have some sort of impact, but that impact might be much greater and, than you ever could have imagined there. Shruti Buckley : You're absolutely right. And you know, when we rolled it out, we weren't sure what the reception was gonna be. Certainly from owners, they were really concerned, right? Certainly from the guests, how would they react? But it's been a home run and it's something we've stayed committed to for the last three decades. Ryan Embree: It's so cool to hear those stories, and I've had the pleasure now of interviewing, several Hilton brand leaders and some of the most key and fascinating takeaways I get from those conversations are the decision to either implement something like we've talked about, or sometimes the even more fascinating is when not to change something. When there was a decision that came down that said, you know, what we're, we're thinking about doing this and then reacting to either, whether it be owner feedback or guest feedback about like, no, this is one of my favorite parts of my experience or my stay. Do you have any stories like that with the, I'm sure we've talked through some of them, but any stories like that about some of these changes based on guest feedback or owner feedback that have really contributed to where the brand is today? Shruti Buckley : There are many examples. You know, it's interesting. There's definitely a delicate dance between the guests need and the owner need. And, and candidly, Ryan, it's become even more delicate as costs have increase. So we have to be really deliberate about the decisions that we make. And, Hampton is considered a premium brand, right? That our guests are willing to pay more for. So we really have to do our due diligence to know what guests want, what they're willing to pay for, and then how that is gonna translate to, market share and RevPAR performance for our owners. And I'll give you two examples very briefly. One is a breakfast refresh. So it was not just the waffle, but it was sort of the entire program of breakfast. We knew that was one of the most important parts of a guest day, and they actually choose Hampton. Shruti Buckley : Many guests choose Hampton because of the high quality breakfast, but the competition was catching up, right? So we said, look, we need to continue to elevate the program. How do we do it in a way that is going to meet our guest needs, but also make sure we don't drive costs? And so that was something, uh, that we started in 2019, but every, every couple of years we're, we are actually looking at that program and refreshing it on a regular basis, but we're, there's a little bit of push and pull, right? What do we touch, do we not touch? And then how does that, that impact the actual cost? But what we find is when we do those things in a deliberate way, it does drive loyalty and then it drives performance for our owners, which is great. Um, another recent example, I'm really excited that this year for Hampton, we were able to launch a new hotel prototype and renovation design for both the Inn, Hampton Inn and Hampton Inn Suites. And what we were able to do was create actually a more functional design package and more modern decor, uh, which would definitely appeal to guests, but we did it in a more cost efficient way to really drive bottom line performance for our owners. So I think those are two exciting recent innovations that were guest led, but uh, ultimately the operational component and the cost component ended up really being very in line with, you know, owner margin performance and driving revenue for those hotels. Ryan Embree: Absolutely. Well, those are the win-wins that you're, that you're looking for, right? And, you know, it helps, I will say having over 3000 hotels and, and, and hundreds of thousands of guests coming through your door. So you have a big sample size of if you do need to make a change, if you're hearing feedback from guests online, whether it be online reviews, social media, keeping an ear, you know, on the pulse of your guests. And we preach that all the time on this podcast, you know, whether you're a, a giant brand, a collection of hotels, or even a single hotel, you know, your guests are really printing out a, a roadmap to that perfect guest experience, but you have to be open and willing to hear them. And some changes may be easier than others, right? But a lot of it needs to be thoughtful due diligence, uh, and very, very data-driven, which, you know, at Hilton, you guys do a fantastic job of. And I'm sure, like I said, you know, there's a lot more stories I think every single time I come into a hotel. Now, I'm trying to think through if I, you know, I I, if I'm a brand leader, you know, why was this put here? Why was it everything in a hotel has a reason for why it's somewhere I'm finding, which is really, really cool to see if you look through the lens like that. So, so I'm sure Shruti after 40 years, you know, you have a lot to be excited about, obviously the big milestone here. But are there any recent projects or developments, you know, you talk about the new prototype, but any projects that are going on right now that really kind of bubble to the top when it comes to Hampton by Hilton for you, Shruti Buckley : You know, one development project that I'm really excited about, you know, as I mentioned earlier, we are in 41 countries and four continents. We are actually currently building the very first Hampton in the continent of Africa, which is very exciting in South Africa. Uh, which, uh, we are looking forward to opening a little later this year. So what to me is so wonderful about the continued expansion of this brand is the way that we can continue to really deliver the spirit of hospitality to new people and different people and bringing these communities together. And, you know, whenever I'm talking to the team members, we always talk about not only taking care of each other and taking care of our guests, but also taking care of our communities. A lot of our hotels do an amazing job with outreach and, um, raising money for various charities and not-for-profits within their communities. And by expanding to a new continent, uh, you know, we're able to now reach a whole new audience, um, and really deliver that spirit of hamptonality to new people, which is really exciting for us. Ryan Embree: Yeah, that's in, that's incredible. Five, five continents. I mean, in the spirit of the Olympics that are going on right now, you know, so many countries, that's really, really cool. So congratulations to, uh, you and your team on, on that, that achievement. Now, Hilton, like I I mentioned, very innovative company, you know, received numerous awards and recognitions for its innovation and technology. Love to hear how we talked about cost are rising right now. There's a staffing shortage. Some of these can be improved with technology, whether it's on the guest side, guest technology, or even on the employee side with technology, implementing that into everyday jobs and tasks. Any technology that we're exploring or recent updates by the Hampton, by Hilton brand, um, when it comes to looking to improve the guest experience using and leveraging technology, Shruti Buckley : You know, we're always looking for ways to improve the experience through technology. Uh, Ryan, I won't share some of the things that we're currently working on, but I am excited to share something that we actually have introduced that is live in the marketplace to support the growing need of, you know, for frictionless travel and introduce easier ways for guests to engage with hotel team members. We are expanding mobile messaging. Um, we're expanding that platform to all of our over 7,000 Hilton hotels. Hampton being of course, the largest brand, uh, partaking in that. And we are getting really great guest feedback from mobile messaging, right? It's allowing us to have a dialogue with the guests. They're able to instantly send us a note. We're able to respond very quickly. And that's been really exciting for us. Um, and, and this new system, it was actually developed in partnership with ksu. Shruti Buckley : We actually had several hotels that were leveraging it already. And because we had received such great feedback and the, the data supported the need and the desire to have that, both from a guest standpoint and an owner standpoint, we were able to roll that out to all of our brands. So that's something that for Hampton specifically, you know, how do you take, um, as people are bypassing the front desk with another, yet technology that Hilton was the forefront of with Digital Key, we now have the ability to still have an interaction with the guest through instant messaging, right? So we talked about breakfast as being a really important touch point for Hampton, and I would say digital messaging being another really important touch point, and, uh, just another way that we can, you know, service our guests and provide a really great guest experience in, in, you know, by leveraging technology. Ryan Embree: Yeah, no, another brilliant example of, again, adapting to the times, right? I think, I think guests are gonna become more and more comfortable with that type of communication rather than, you know, picking up the physical phone that's in the, the hotel or even coming down to the front desk. They want maybe that, uh, more seamless communication. So another great example of a byproduct of you create this one amazing guest, uh, technology with the keyless entry, but then that removes a piece of hospitality, which everyone loves, right? Everyone, you know, come to the front desk, you check in, you ask why you're here, you know, that now all of a sudden that removes and now finding a different way and a different path to get in front of the guest keeps you very, very connected to the guest and I'm sure has profound impact on the brand and its communication moving forward. So as we wrap up here today, Shruti, let's fast forward, we'll time travel five years down the line, we're, we're celebrating, uh, Hampton by Hilton's 45th anniversary at that point, obviously in five continents at that point. But what's your vision for the brand five years down the line? If, if I had to ask you today, Shruti Buckley : Oh my goodness, five years down the line, you know, is to continue to deliver the service experience that keeps us on top of the game, right? So our objective is, you know, how do we continue to deliver great product, great experience to drive consumer loyalty, to drive owner returns, so we can continue to be the number one brand for owners from a franchising perspective and the number one brand in the upper mid-scale category for consumers to choose. And my hope is right, as we, in fact, we have the largest pipeline in the industry of over 800 hotels that will come online. So by then, you know, five years from now, I think we're probably looking at around 4,000 hotels. Um, maybe even another continent who knows. But more importantly, you know, in, in a world that sometimes seems a little divisive, I think what is really exciting about the world that we live in, Ryan Hospitality is, and with a brand that is at the scale of Hampton, is that we truly can make meaningful connections and bring people together. And I think that to me is how all of us in this industry can have a positive impact is by creating these moments, building connection, right? People travel regardless of the background you come from, and they're often all staying in a hotel together. And, and there are opportunities, uh, to bridge those gaps that sometimes exist. And that to me is what's really exciting. So continued leadership, continued success, and continue to be the number one brand for owners and for consumers. Ryan Embree: Well, very well said, Shruti. And hopefully, uh, a lot more hotels and a lot more, uh, different flavored waffles, uh, as well for us to try for me and, and all of, all of our Hampton by Hilton loyal guests out there. So thank you so much for joining me on the Suite Spot. What an incredible celebration of 40 years, uh, Hampton by Hilton and this brand. And it sounds like, uh, this is just the beginning for, for you and your team. So congratulations again Shruti. Shruti Buckley : Thank you very much, Ryan. Appreciate it. Ryan Embree: Alright. It's a pleasure speaking with you. And thank you all for listening to the Suite Spot, we'll talk to you next time. To join our loyalty program, be sure to subscribe and give us a five star ratingon iTunes. Suite Spot is produced by Travel Media Group. Our editor is Brandon Bell with Cover Art by Bary Gordon. I'm your host Ryan Embree, and we hope you enjoyed your stay.