Combining tradition and innovation

Combining tradition and innovation

Combining Tradition and Innovation Long-term, family-style ownership has helped The Homestead maintain its century-old traditions. But adherence to tr...

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Combining Tradition and Innovation Long-term, family-style ownership has helped The Homestead maintain its century-old traditions. But adherence to tradition hasn't prevented the resort from moving in new directions. In fact, innovation is a Homestead tradition

by Glenn Withiam THE TIME is 4:00 PM. For the past several minutes, guests at The Homestead have been gathering in the main lobby. Most of the chairs and settees are occupied, when a piano player starts playing the grand piano. Momentarily, William W. "Woody" Pettus, maitre d'hStel, leads his staff of food servers into the lobby, carrying coffee, tea, and plates of quick breads. It's teatime at The Homestead. For the next hour, anyone who sits down in the lobby is offered refreshments. Later that evening, guests will dress for dinner and, in the main dining room, will be greeted at the door by the same Woody Pettus. Amazingly, Pettus is also standing by the next morning for Sunday brunch. Woody Pettus is just one of the hundreds of employees who maintain The Homestead's tradition of gracious service, as exemplified by afternoon tea. A five-star resort, The Homestead faces several challenges--a relatively remote location (in Virginia's Allegheny Mountains), a tiny local labor pool, a huge physical plant, and competition from an expanding host of resorts. Such factors dictate that The AUGUST 1991

Homestead constantly work to maintain the high level of service and amenity signified by its fivestar rating, which it has earned for 29 years running. That rating requires constant attention to the many details that go into a resort guest's experience. This article describes The Homestead and discusses how the resort has continued to thrive despite the many challenges it faces.

Long-Term Ownership The Homestead's operation has been strengthened by the stable ownership of Virginia Hot Springs, Inc., the firm that has owned the resort for the last 100 years. When the original Homestead was built in the mid-19th century, it was one of several warm-springs resorts in the area. "Taking the waters" was regarded as a cure for a wide range of diseases during the 1800s, and travelers came to the warm springs despite difficult traveling conditions. In 1890, M.E. Ingalls, president of the Chesapeake & Ohio Railway, purchased The Homestead and set up the Virginia Hot Springs Company to operate the resort. Shortly after that, the C&O put a branch line to The Homestead, guaranteeing a steady flow of guests. (With the advent of the 61

automobile, that spur fell into disuse and was abandoned in 1970.) Construction of the present-day Homestead began in 1901, after the grand, wooden hotel Ingalls purchased burned to the ground. Subsequent wings stretched to the west and east from the original brick structure, connecting the hotel to a bathhouse (now known as the spa) that survived the fire. During this period, the resort gained international renown. In 1928, the resort's signature tower was added in the middle of the property, replacing a ballroom. The Depression and World War II were hard on The Homestead. It fell into bankruptcy in 1938 and was nursed back to health by M.E. Ingalls' son Fay Ingalls, still under the ownership of the Virginia Hot Springs Company. In 1942, the resort was used for three months as Quarterly executive editor Glenn Withiam acknowledges the assistance of The Homestead's director of public relations, John M. Gazzola, Jr., in the preparation of this article. Historical information is drawn from: Stan Cohen, The Homestead and the Warm Springs Valley (Hot Springs, VA: The Homestead, 1984).

an internment center for Japanese diplomats, but then was released by the government for use by civilians. J u s t five guests came at the beginning of th a t season. Separated from the C&O's holdings in 1948, The Homestead was free to make more improvements to its property, culminating in the construction of a south wing and conference center in 1973. More recently, the resort has opened a row of free-standing shops and is beginning its second development of single-family vacation homes adjacent to the fairway of one of its golf courses. As other parcels became available, The Homestead expanded from the original 4,700 acres purchased by M.E. Ingalls to some 15,000 acres today. One of the subsequent purchases was the property of the neighboring Warm Springs Resort, once more popular t h a n The Homestead's hot springs. The original men's warm springs bath, still in use, was built in 1761, while the women's bath, also still in operation, was constructed in 1836. Another subsequent purchase wa~ the "Healing Springs" property, now the site of The Homestead's two challenging Cascades golf courses.

A Tradition of Innovation The Homestead's location in a peaceful, narrow mountain valley is, at the same time, a strength and a hazard. The strength is t hat the valley has a considerable number of highlights, both natural and man-made. The hazard is that the valley's remote location--90 minutes from the nearest major airport--will discourage guests and employees from coming. In response to that challenge, the resort has steadily developed an increasing number of guest activities. Attractions. The valley's earliest drawing card, the warm springs themselves, are still available for

people who want to take the w a t e r s --bot h externally, in a 230year-old bathhouse, and internally, using a traditional metal dipper (or from bottles purchased in The Homestead's gift shop). In the century t ha t the Ingalls family has overseen The Homestead, a vast array of other activities has been added. The bathhouse, built in 1892, holds a geothermally heated indoor pool constructed at the turn of the century. The adjoining spa was developed over the years, starting decades ahead of today's interest in health and fitness equipment. In the early 1900s, Gustav Zander developed a set of early-day exercise machines that are still in use today. The spa also still offers the "spout bath," a muscle-conditioning t r e a t m e n t during which a stream of water is sprayed on a person. The Homestead developed its first golf course in 1892, just five years after the first golfing club was organized in the U.S. That first hole still begins one of the resort's three golf courses, making it the oldest tee in continuous use in the U.S. In 1899, The Homestead employed its first golf pro. Also during the 1890s, the Hot Springs Company laid out several miles of bridle and walking trails through the adjacent hills. Those same paths are still used today by hikers and horse riders alike. Through all those years, The Homestead had always been a steeply seasonal resort. Winter in Virginia's Allegheny Mountains was not an attractive time. That situation changed in 1959, when The Homestead introduced one of its most remarkable innovations. That year, prominent Austrian skier Sepp Kober turned an old golf course into the south's first ski run. With that addition, The Homestead became a year-round resort and has remained so since. Although winter is still a relatively slow

T hat long list of activities, however, doesn't really provide a complete description of what sets The Homestead apart from other resorts. The Homestead has a distinct personality, embodied by a person who spent time as a child at his grandfather's resort, was away for awhile, and then came back as president of Virginia Hot Springs Company three years ago. That person, Daniel H.H. Ingalls, Jr.,

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THE CORNELL H.R.A. Q U A R T E R L Y

time, The Homestead is booked solid for Thanksgiving and Christmas. During the holiday period, the clientele is strictly social. Changing travel patterns caused The Homestead to make another innovation in 1973--the construction of a conference center, which seats up to 1,000 persons. That development was a recognition of the fact t hat group sales had become a substantial piece of The Homestead's business. Chiefly to serve its group clientele, The Homestead put mini-bars in its guest rooms in 1990. In 1991, The Homestead offered its guests the choice of European-plan pricing, after decades of including a modifled American plan in its room rates. Tradition. With its many innovations and changes, The Homestead has become a resort that offers a wide variety of activities. In addition to those already mentioned, these include bowling, carriage rides, fly fishing, movies, skeet shooting, and tennis. There's even a sand "beach" adjacent to the outdoor swimming pool. Moreover, the resort has added a more contemporary diversion--the specialty shops, known as Cottage Row. And for people who would like to buy a piece of paradise, The Homestead's residential community, Northridge, allows families to take extended vacations and still experience the resort.

A n Ingalls Returns

carries that childhood memory of the warm, family resort as he operates The Homestead today. At the same time, Ingalls draws on his former career as a computer engineer to bring current management concepts to the resort. It was under Ingalls's guidance that The Homestead installed the mini-bars, developed the Cottage Row shops, and built the million-dollar golfcourse residences. In each development are the intertwined themes of building the resort's revenue stream, offering more and different amenities for guests, and preserving the ambience of its fivestar service. Ingalls's vision for The Homestead is "to preserve what's wonderful about this place and to communicate and serve it effectively to guests," as he put it. "I'm happy about inheriting the name 'Homestead,' because it calls to mind a great deal of what I want to provide here--the feeling of an extended family and comfortable elegance." The idea of developing portions of The Homestead's property for residences fits with Ingalls's view of the resort. "We had a clientele who came in for the summer and settled in," he said. "Families who have purchased those homes know that when they take up residence, they'll be seeing their friends--it's a real nice community feeling." Ingalls is particularly proud of the depth of The Homestead's "gentlemanly sports," as he termed them. "We have over 100 miles of riding trails, plus a large stable of horses. It's hard to find good stable horses anymore," he said. "It takes this kind of place to do it right. "For the shooting sports, we have four skeet and two trap fields in beautiful settings," he added. "The Homestead used to have three skeet tourneys each year, and I'd like to revive that tradition." The resort also offers fly fishing. AUGUST 1991

Travel Patterns Despite its many attractions, The Homestead's human-resources and marketing departments must work constantly to offset the negative aspects of the resort's location. A large share of The Homestead's 1,100-plus employees are residents of Bath County (population 5,860) and nearby towns. But local residents could never supply sufficient staffing for the Homestead's many departments, which include a furniture shop, a printing press, a butcher shop, and a bakery, in addition to the usual rooms- and F&B-related departments (not to mention the golf courses and other activity areas). While local residents can supply sufficient labor for most of the trades, the resort casts a far-flung recruiting net, including bringing people in from Jamaica and the Philippines, to fill positions in food service. As a five-star resort, The Homestead's main dining room offers essentially French service, which involves at least two servers (often assisted by the captain) at each station. Ingalls is philosophical about employees. '~You have a set of people who won't come. If you like the glitzy life, you won't last long here," he observed. "But those who like the character of the area and the personality of the place come and stay on. We have families who've worked for The Homestead for four and five generations." The result of this longevity, Ingalls believes, is an attitude toward pleasing people that extends beyond The Homestead throughout the Hot Springs Valley. M a r k e t i n g . During the first part of this century, The Homestead's chief market was vacationers who would come for at least a week, often longer, typically during the summer months. Travel patterns began to change in the 63

1950s, as highways improved and passenger rails became less important. By the time the train spur was abandoned in 1970, The Homestead had already started boosting its group-meeting business, which today supplies somewhat more room-nights than leisure guests. The proportion of business supplied by the meetings market has not changed substantially since 1973, when it grew as a result of the conference center's construction. That project added 197 guest rooms, including duplex suites, plus the typical large and small meeting rooms. Needless to say, The Homestead already had substantial meeting space before this addition. Offering the option of Europeanplan pricing is a direct response to the needs of the meetings market. The EP option allows The Homestead's pricing quotations to be directly comparable to those of resorts that never offered MAP pricing. Separating the F&B costs from the room charges also allows meeting planners to create a more attractive package for their group members. Meeting participants might formerly have paid for food both in a conference fee (for banquet service) and in the room rate (which included two meals per day). Considering how lavish The Homestead's food service is, no h u m a n could consume all that food (and live). While the resort might have made some money on breakage, the outcome would be an uncompetitive pricing pattern. (Another traditional MAP resort, the Boca Raton Resort and Club, made a similar change in 1987. See: "Culture at the Crossroads: Boca Raton and Rockresorts," in the May 1991 Quarterly.) Despite the importance of meetings to The Homestead's marketing effort, Ingalls pointed out that the resort is not aimed at becoming a business hotel. "We

A Spring Wine and Food Festival The final banquet of The Homestead's Wine and Food Festival is "black-tie optional." But even though not all the guests are in formal attire, the tables in the resort's Commonwealth Room certainly are. For this seven-course banquet features 12 wines, carefully selected to accompany each course, and each wine, naturally, needs its own glass. That means that each place setting has 12 glasses, and each table, set for eight, has a total of 96 glasses on it (not including water glasses or champagne glasses from the reception that preceded the dinner). To complete the The Homestead's picturesque Commonwealth table setting, each cover is Room, set for dinner. set with a service plate of hand-painted stoneware, and to complete the scene, the walls of The Homestead's Commonwealth Room are covered with murals depicting the colonial era. A meeting planner who isn't impressed by that scene will never be impressed by anything. Meeting planners, journalists, and vintners are among the guests who mingle with the cash customers during this three-day festival, which gives The Homestead a chance to show off its full capabilities. Although April is a shoulder period for the resort, the mountains are in blossom, the weather is fine, and all but a few of the resort's facilities are in full operation. For guests who come to sample wines and partake of excellent cuisine, the weekend is no disappointment. Included in the package is breakfast and dinner, in keeping with the resort's modified American plan, plus a luncheon buffet, several wine tastings, a complimentary roomservice cart, a wine-makers' reception with a six-station buffet meal on Friday, the Saturday banquet, and Sunday brunch, also served in the Commonwealth Room. Other group events are also occurring during this April weekend, and many leisure guests have arrived to take advantage of the good weather by playing a few rounds of golf. Despite this mix of business, however, The Homestead never loses the feel of a leisure-oriented resort. One of the secrets seems to be that badges are not the method of getting people into events. Instead, the resort's print shop produces a series of tickets for admittance. Each function room simply has a sign stating "Private Party," and the participants sort themselves out by noting the information printed on the tickets. One of the highlights of the festival was a cooking demonstration by chef Albert Schnarwyler, who then led interested persons on a tour of the back of the house. The festival's schedule is loose, to allow participants to take advantage of The Homestead's amenities. In fact, attendance at some of the daytime wine-tasting sessions was downright spotty. Wines featured during the festival were exclusively from the U.S. west coast, including those of Arrowood, Domaine Chandon, Robert Mondavi, and such "boutique" wineries as Hidden Cellars. Self-promotion through special weekends is an essential part of resorts' marketing programs. The Homestead's other special weekends in the early part of 1991 included a chamber-music weekend and Presidents'/Valentine Weekend, in February; and Easter at The Homestead and the Virginia Wine and Food Weekend, in March. The Homestead's centennial celebration, August 1-12, comprised dozens of daily events for the entire family that could be enjoyed as part of several "Grand Gala" packages, including the Gala Event--featuring the Glenn Miller Orchestra.--G. W.

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need to maintain the business component, and we're paying attention to what customers want," he said. "The meal-plan change is one of the biggest we've made to accommodate business travelers, but it really affects social guests, too. We found that people like to have choices in their dining experiences." To that end, both MAP and EP guests now can choose among several different dining outlets on or adjacent to The Homestead's grounds. In addition to the main dining room, The Homestead offers an English-pub-style grille, a luncheon buffet in its century-old Casino (with dining on the lawn when weather permits), Sam Snead's Tavern, and the Caf~ Albert, named after The Homestead's head chef, Albert Schnarwyler, who has been with the resort for nearly 30 years. All the dining outlets are available for both MAP and EP guests. Ingalls wants to encourage guests in both market segments to stretch their stays, which average just three days. "One of the ways to deal with the problems of accessibility is to lengthen the average stay," he explained. "Transportation time is significant, but if people stay longer it is less imposing." As an incentive for guests to lengthen their stay, The Homestead is offering a "centennial package" during 1991, which gives guests a fourth night free if they stay for three nights. Ingalls credits The Homestead's employees for earning the five-star designation. "The support of our employees is like the support of a large family. They deliver the kind of service people expect in a fivestar resort," he said, concluding, "There's something here at The Homestead that I've loved since I knew it as a boy, and I'll be happy if I can realize the promise of this resort." T H E C O R N E L L H.R.A. Q U A R T E R L Y

The Future of Hospitality Education: Meeting the Industry’s Needs, by Raymond .T.Goodman, Jr., and Linda G. Sprague H[)sl~ifa~~f~ rducxtfors c~lo.scls the qdufed ,fytiiw~l

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Training-Program Expectations: A Conundrum, by Joseph F. Durocher and Raymond J. Goodman, Jr. According rraining match.

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Page 89

AUGUST

1991

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