The Major Prize Comedown Edition
On the Michelin star curse, the "Best Hotels," and the pitfalls of recognition.
Colin here. Recently, the second edition of ‘The World's 50 Best Hotels’ occurred in London. It was quite a shindig, with all the predictable glamor of a room full of high-end hoteliers. It's hard to be truly objective with such things, but the winners were generally hotels that strive for that extra 10 percent when it comes to aesthetic perfection, hospitality, and anticipatory service.
One of the coolest things I heard last year was that, after being awarded the top prize, Passalacqua, a wonderful hotel on Lake Como, took the metaphorical phone off the hook. They didn't answer requests from bold-faced named celebs, nor did they let oligarchs book out the place. They tried their best to avoid the limelight. This was the correct strategy. Many of the hotels that win accolades like this then have million-dollar problems: their guest base rapidly changes from die-hard fans to lookie-loos who just want to check off their list of where’s hot now. Suppliers suddenly have leverage to charge more. Your staff get poached quickly.
Why is this interesting?
I’m intrigued by this phenomenon: the second and third-order effects that come following a breakout award or success. The Economist cites some interesting data that many restaurants given a Michelin Star actually become more likely to close. The underlying reasons why are very similar:
"A Michelin star boosts publicity: the study found that Google search intensity rose by over a third for newly starred restaurants. But that fame comes at a price. First, Mr Sands argues, the restaurants' customers change. Being in the limelight raises diners' expectations and brings in tourists from farther away. Meeting guests' greater demands piles on new costs. Second, the award puts a star-shaped target on the restaurants' back. Businesses they deal with, such as ingredient suppliers and landlords, use the opportunity to charge more. Chefs, too, want their salaries to reflect the accolade and are more likely to be poached by competitors."
Obviously, the commercial and reputational gains to be had from winning one of the top 50 awards for hotels, or a coveted star, will keep hospitality pros clamoring for the recognition. But it's fascinating to see that behind that golden spotlight lie strategic, cost, and human resource challenges that lurk like a mugger in the alley after the confetti has fallen. (CJN)