Hotel Management Hotel Management

Running a hotel successfully isn’t easy. Hospitality management and operations is complex, with many interlocking pieces and dependencies. Hotel managers have to be great at time management, context switching, and problem solving. In a single hour, you may go from placating an unhappy guest to cleaning guest rooms, analysing guest service requests, handling a plumbing emergency to interviewing a front office manager candidate to reviewing the latest revenue management report. During COVID-19 the role of a hotel operations manager and hotel staff in general has become even more complex with new health and safety guidelines.

Running a hotel property is definitely not for the faint of heart!

The complexity and importance of hotel operations is a frequent topic here at Hotel Tech Report. We sit at the intersection of hotel technology and all aspects of hospitality. We’re constantly seeking to deepen our understanding about the intricacies of hotel operations; then we identify ways for technology to streamline and improve operations and create content for our community around what we’ve learned.

So, whether you are new to hospitality looking to learn or a veteran operator seeking a refresher, we've compiled everything that you need to know about hotel operations into this single resource. Here, you will find the breadth and depth of content that we’ve created around operating a hospitality business.

Key Industry Terms & Definitions

A foundational understanding of hotel operations starts with defining key industry terms and concepts. A thorough grasp of these terms means that you can talk the talk and also know which levers you can use to improve a hotel’s operations. With key terms, such as RevPar, and core concepts, such as the traits of hospitality, you’ll be on your way towards building your successful hospitality career!

What is hospitality?: Hospitality. It’s right there in the name - but it's not always clear what we all mean by hospitality. In this article, we establish a shared definition of hospitality and explore what is (and isn't) hospitality to showcase how this eponymous concept is applied in the industry. With this definition, you’ll have a strong grasp on both the historical background and the current ways that hospitality is practiced in the industry today.

Front of house: What’s the difference between the front of the house and the back of the house? It may seem obvious but it's actually one of the most frequently searched terms when it comes to hotel operations. In this article, you’ll learn about each role in both areas, along with ideas around connecting the two halves seamlessly together with low-cost technology.

Hotel room types: Did you know that there are over 20 room types traditionally used by hotels? This can be quite confusing - and not just for hotel guests. Hotel managers must also know how to market their rooms to guests, as room type have a direct impact on a hotel’s market and price positioning.

RevPAR: The hotel industry's top metric for evaluating performance is RevPAR. The metric combines occupancy and Average Daily Rate to track a hotel’s performance, as well as a helpful benchmark to compare performance against a competitive set.

Hotel amenities: Today's guests are sophisticated and spoiled with choice. That's why amenities have become a key differentiator for hotels. In this article, you’ll learn the top 21 hotel amenities that improve the guest experience; with this knowledge, you can create a virtuous cycle of higher guest satisfaction and better online reviews - a virtuous cycle for hotel management.

In-Depth Guides to Hotel Operations

It can take years to build up enough muscle memory to know just what needs to be done to optimize a hotel’s operations. To accelerate that learning, we’ve identified several of these in-depth guides that go into specific aspects of hotel operations. Whatever your level of experience, you’ll find a guide that further explains the ins-and-outs of hotel management.

Hotel Management: This is a complete guide to everything you need to know about hotel management companies, which are the entities that operate hotels day-to-day.You'll learn about the top hotel management companies, how owners choose hotel management companies and see which hotel management careers might be the best fit for you and your career goals.

Hospitality Consultants: It’s not always practical to handle everything in-house. When considering which projects (and problems!) may benefit from external expertise, check out this comprehensive look at hospitality consultants. We identify the key areas for hospitality consultants and rank the top global hospitality consulting firms and smaller boutiques to guide your decisions.

Hotel RFP Guide: Requests for Proposals (RFPs) are a common factor of a hotel manager’s life. By compiling detailed project specs into a single RFP, hotels can solicit proposals from potential vendors in a more organized (and fair) fashion. But the process can be complicated and hard to manage; this guide explains how to keep it streamlined and straightforward.

Hotel Brand Guide: It's hard to keep up with the number of hotel brands worldwide; the major hotel companies have been launching new sub-brands, each targeting a specific audience, at breakneck pace over the past decade. This hotel brand guide is an editorial look at each global hotel brand’s offerings across the spectrum of hotelcategories, from economy all the way up to luxury.

How to Start a Hotel Business: In a world where anyone can become a hotelier by uploading their property on Airbnb, the hotel dream is alive and thriving. This guide walks through hotel start-up costs, what it takes to start a hotel, and six steps to launching your own hotel business. It also includes interviews with actual hotel owners to provide that valuable on-the-ground perspective.

Hospitality Industry Guide: This guide is designed to provide you with everything you need to know about hospitality. It covers: common hotel job roles, industry trends, terminology and conferences, the top hospitality business publications and organizations, the best hotel schools, the largest employers and continuing education and certifications to build your career.

100 Hotel Trends: Hospitality is a dynamic industry that has been undergoing a lot of change amidst significant headwinds. These top hotel trends span the gamut, from smart rooms, going green and alternative accommodations, to technology, traveller preferences, hotel design and more.

Role-Based Tips for Optimizing Staff Operations

A hotel has staff with a variety of different jobs: housekeepers maintain rooms, front desk clerks greet guests, concierges make guests wishes come true, maintenance technicians keep things repaired and running well. And there are many others, all working diligently and collaboratively to keep the operation humming. To help you understand what it's like in each department, the guides below focus on specific roles around the hotel.

Hotel Housekeeping Duties: Step into the housekeeping department for “a day in the life” view of what it takes to keep this essential department running at full steam. You’ll learn about each role in the department, as well as the responsibilities, skills and requirements for each role.

Hotel Concierge: The concierge is actually a powerful tool for guest loyalty. Learn what a concierge does, and get ideas from a list of 35 things that your hotel’s concierge can do for your guests, which can improve the guest experience and lead to better online reviews.

Hotel Housekeeping: Effective housekeeping departments rely on software to keep everyone on the same page and to make dynamic room assignments as guest check in and out. Here's what to look for in hotel housekeeping software, as well as the top vendors in the category.

Hotel Operations Strategy

Operating a hotel requires not only a lot of organization but also a good measure of strategy. It's not enough to just schedule everyone and try to keep things from falling apart. Rather, you must implement strategies that incrementally improve your operations and allow your team to be more efficient (and happier) at work. These strategies will not only improve staff satisfaction but will also trickle down to a better guest experience across your property.

Six Sigma: Originally popularized by Toyota and General Electric, “lean Six Sigma” practices make perfect strategic companions for hospitality. The focus on service optimization means that your guest (and staff) experience remains consistent, with few variations, and helps you get better with time.

Hotel Checklists: Even if you hire the best people, you won’t get the best out of them if everything is disorganized. To avoid a disorganized and inconsistent experience that frustrates your good people and drives them away, use checklists. Learn about the psychology of checklists and the areas that can benefit most from them.

Kaizen at Your Hotel: Another management strategy for your hotel is Kaizen, A Japanese management strategy that prioritises small improvements, preferably those that can be implemented in a single day. The combined effect of many daily tweaks can lead to major improvements over time.

SWOT Analysis: By analysing your hotel’s strengths, weaknesses, opportunities and threats, you’ll have a firmer grasp on your competitive positioning - and which strategies and tactics are best for your hotel. In this article, we look at small businesses examples and walk through a SWOT analysis for a hotel.

Leverage Collaboration Tools: Hotels with href="https://hoteltechreport.com/news/collaboration-tools-guide" target="_new">staff collaboration tools reap the benefits of improved operational efficiency, better guest experiences, and increased revenue per available room.

Hotel Manager's Technology Cheatsheet: Technology has become a cornerstone of hotel operations. It’s a superpowered ally, boosting daily operations while also showcasing your hotel to the world. This guide for hotel general managers is oriented around desired outcomes, such as efficiency and productivity, so you can find the right tech for your hotel.

Hotel Operations Software: As a hotel manager, you must carefully craft tech stacks that work for you (and not the other way around). As always, that's easier said than done. This guide to hotel operations software walks you through each hotel tech category and offers key insights on what you need to look for when evaluating potential vendors.

Team Wellness and Human Resources Tips

Hotels that consistently deliver a memorable guest experience share one thing in common: a fantastic staff. As a hotel manager, one of your biggest responsibilities is nurturing a staff that cares deeply about their guests. And that requires you to care deeply about their well-being. Here are some resources on staff wellness, productivity and management to help you keep your staff operating at peak form.

AHLA 5-Star Promise: The American Hotel & Lodging Association created the Five Star Promise as part of an initiative to ensure the safety of staff and guests at member properties. this article looks at each aspect of the Pledge and helps you understand how you may use its guidance to improve the safety of your own staff - and the guests they serve.

Minimum Wage: Labour is always a top expense for hotels. And, in an industry that employs many hourly workers, it's fairly easy to have a gut reaction against raising the minimum wage. However, that's not necessarily the right reaction. This article explains why a rising minimum wage is a good thing for the industry.

Stress in the Workplace: Stress is a terrible thing. Employees with high stress levels tend to call out of work more often and perform more poorly while at work. This “silent profit killer” must be tackled head on; this article outlines the effects of stress at work, reveals the causes of stress and offers clear strategies for tackling staff stressors.

Hospitality HR Tech: Hotel HR managers have a lot on their plate. In an industry with high turnover, there's always a position to fill, an interview to do, a new hire to onboard, performance reviews to file. It can be a very stressful job! But with the right technology, the job can - dare we say it - actually be pleasant.

Best Hospitality Books: Standing on the shoulders of giants is a lot easier when you can read all about it! Hotel Tech Report surveyed hoteliers and industry professionals about their “must read” hospitality books. They then compiled the most popular books into a single reading list. Now relax: it’s time to learn from the legends.

Cybersecurity for Hotels

As hotels gradually adopted more technology across all aspects of their operations, they became more vulnerable to hackers and bad actors. at the same time, the industry didn't necessarily do the best job at building layers of security that protect core systems. From guest Wi-Fi to public lobbies and online bookings, there are many ways that hackers can exploit vulnerabilities. Read these three guides on what you need to consider when building an effective cybersecurity strategy for your hotel.

The Geopolitics of Cybersecurity: From ownership structures to global brands to international travel, the hospitality industry reaches across boundaries. This global footprint has real geopolitical considerations - especially when it comes to data sovereignty, or where user data is stored. Here's what you need to think about, framed in a global context around recent data breaches, corporate politics and regional differences.

Malware in Hotels: There are so many different access points that hackers can use to gain entry to your hotel systems - and it's not only the public Wi-Fi that leaves you open to attack. Hackers use all kinds of sophisticated ways to Pro for weaknesses and even trick your staff into sharing sensitive information. Read this article to gain clarity on existing vulnerabilities and what you can do to minimize them.

Marriott Hack: Hackers love targeting hotels because hotels have a lot of personally identifiable information, such as credit cards and addresses. One recent data breach at Marriott put the spotlight on the industry cyber security practices (or lack thereof). Here's what you can learn from Marriott's unfortunate data breach.

Influential Hotel Operations Tech Trends

The hotel industry is not necessarily A first-mover when it comes to technology. Part of this is due to the inherent costs and difficulties of transitioning a 24/7 hotel operation onto a new platform, system or software.

One of the rare benefits to the ongoing pandemic is that there is downtime to reassess and potentially restructure your hotel’s technology systems. Browse through these extensive guides to see which hotel technology trends are influential and here to say - and which ones are not living up to the hype.

Hotel Tech Trends 2020: The eight technology trends to watch out for in 2020 still resonates in our pandemic-inflected reality. In fact, COVID is accelerating many of these trends and making them more urgent for hotels. Read this article to see how trends like cybersecurity, privacy, data, APIs, and room technology are affecting the industry.

What is an API? As one of the top trends of 2020, APIs are everywhere. These Application Programming Interfaces enable different types of software to communicate, which is how you are able to build a technology stack that works for your hotel without having to rely on a single vendor or make compromises on functionality. It's a nerdy (but important!) tool and this article helps explain it for even the most technologically challenged.

Payment Processing: One of the most annoying and confusing expenses for a hotel is payment processing. There's no way of getting around it so you must get through it. In this article they lay out, in plain English, the key terminology, as well as the top conversations when choosing a payment processor for your hotel.

Best Hotel Software: Each year, the HTR team recognizes the top hotel software across categories. The 2020 list your cheatsheet for finding the most reputable, reliable and well-reviewed software for your hotel. You can browse through each category of software to see the 2020 winners, or download the comprehensive 37-page guide - with an added visual bonus of the hotel technology market map!

Productivity Improvement: One of the bedrock benefits of software and technology is improving the productivity of your staff. So why is it that Otis technology doesn't seem to be improving overall productivity? We dive into the numbers and then explore three key strategies to ensure that your technology is boosting productivity as expected.

Digital Transformation: Hotel industry has been a bit of a laggard when it comes to digital transformation. Thankfully, momentum has been increasing over the past five years. This article defines the term “digital transformation” And identifies three core digital transformation strategies to try at your hotel.

Hotel Chains Shouldn't Build Tech: There are some that believe building technology in-house is the surest way to align tech solutions with a brand’s needs. They take the opposite view in this article, showing how there is such breadth and depth of choice in today’s marketplace that makes it less desirable to build your own tech.

Hotel Technology: Each year, your knowledge has an investor Mary Meeker release the “Internet Trends Report.” It's always chock-full of interesting titbits and insights that can be applied to travel. This year was no different. This article has combed through the latest report to find the relevant hotel tech trends for the years ahead.

Operations of a Hotel

Hotel operations include all activities necessary to keep a hotel running and to deliver a good guest experience. For example, the front desk is responsible for checking guests in and out, and the housekeeping department is responsible for cleaning rooms and public spaces.

What are the operational departments in a hotel?

The foundational operational departments in a hotel are the front office and housekeeping. If a hotel has a restaurant or bar, then the hotel will have a food and beverage department. Larger, full-service hotels might also have sales, finance, reservations, banquets, human resources, marketing, engineering, and security departments.

What does a hotel operations manager do?

A hotel operations manager oversees all of the operational departments at a hotel. The operations manager must ensure that the front office, housekeeping, food and beverage, and maintenance departments perform their roles sufficiently to deliver a good guest experience and meet revenue and occupancy goals.

What is hotel operational plan?

A hotel operational plan contains all of the necessary tasks and activities to run a hotel. An operational plan for a hotel should include measurable goals and the steps and resources needed to achieve them. Hotel owners might create operational plans before starting a new hotel business or when seeking to improve performance.

How can hotel operations be improved?

Some top strategies to improve hotel operations include investing in staff training, strategically implementing software to automate tasks and organize information, empowering employees to deliver great guest experiences, building better communication practices, studying competitor offerings, adopting contactless features, and improving partnerships with vendors and suppliers.

Tips for Effective Hotel Management

Effective Hotel Management

You’ve probably heard the saying, “A hotel is only as good as its employees.” That’s why you need skilled employees who provide exceptional customer service, otherwise, even the best hotel won’t make it.

It’s no secret that the hotel industry has a high turnover rate, in fact, this industry has an annual turnover rate of 73.8%, which is more than any industry out there.

With such alarming statistics, it is vital that management is fully suited to providing a healthy work environment that leads to engaged and motivated employees – all of which leads to happier customers which leads to more revenue. It is vital that you remember that the buck starts and stops with you. In fact, managers are usually the direct cause for motivation or frustration.

As the manager, it’s up to you to ensure your skills lead to a healthy workplace and happy employees. Now, not everyone is outright born with managerial skills. That’s why we did our homework and list these tips for hotel management. As such, you’re well on your way to creating the best hotel experience that your guests deserve.

Communicate

Miscommunication leads to mistakes and that is something you want to avoid! By keeping everyone on the same page, you are minimizing the likelihood of errors occurring. As the hospitality manager, you are the problem solver and the role model for all to follow so give out clear instructions, address concerns, and thoroughly explain procedures.

If your team doesn’t know what’s going on, then mistakes are more prone to happen which only means unhappy customers – and we all know unhappy customers will write a scratching online review which is bad for business.

Use the following methods to communicate effectively:

In the hospitality sector, the driving force of success is happy and loyal customers. To drive loyalty, your staff should go above and beyond customer expectations. With the absence of internal communication, providing a seamless customer experience is next to impossible.

For your vacation rental, miscommunication and inadequate communication are two major factors resulting in mistakes. According to a report, the cost of poor communication for a company with 100 employees is $420,000 per year.

With this figure in mind, keeping every member on the same page is the best way to reduce the likelihood of errors and effectively manage your hotel. From providing formal training sessions to boosting staff morale, you need to take an extra step to ensure effective communication to and between the staff members.

With 69% of hotel managers not comfortable communicating with the employees, you need to lead by example to foster a culture of communication in your vacation rental. When you make internal communication a part-and-parcel for your hotel’s strategy, your operations will witness an upward trend. When you communicate with your staff, you trigger a spike in engagement rate resulting in more productive teams. It creates a culture wherein the staff is dedicated to delivering a stellar guest experience.

Delegate

Delegation is key. As the hospitality manager, it is your job to oversee all the departments but make sure that the employees report to a department head and not the hotel manager. Hold daily meetings with the department heads so everyone is aware of what’s going on for the day – for example, if there is a big conference happening at your hotel then mention this, so the staff are aware of extra foot traffic and can keep the area as tidy as possible.

Org Chart

Source: https://www.orgcharting.com/hotel-organizational-chart/

Now that the department heads know what is going on, they can manage the employees more effectively and efficiently. Giving your department heads wiggle room is crucial to keeping things running like a well-oiled machine. However, occasionally popping in just to make sure there are no hiccups is an effective management tool. As you interact with the staff more, the more accountable they feel to do the best job possible.

Delegating may sound like a breeze, but passing the baton to others requires a great deal of communication, coordination, and trust. Delegating the right task to the right staff helps empower the team, assist with professional development, and, above all, build trust.

There is no point delegating accounting and billing tasks to someone with a science degree. The job is fit for a person with a finance degree. This makes task delegation an uphill battle for hotel owners or managers.

Of course, delegating work takes the workload off your plate, but it’s much more than that.

For one, your employee who works for you will develop new skills and gain knowledge, thereby preparing them for taking future responsibility.

Remember to award the employees who outperform to instil confidence and increase their motivation level. People work better when they are valued. Therefore, you need to foster a good working relationship with every employee within the team and hotel.

Hotel employees who feel respected and trusted are likely to display a higher level of work commitment.

Steps to delegate the right task to the right staff:

Know Your Stuff

Walk a mile in your employee’s shoes. That’s the only way you’ll ever run the hotel exceptionally. Clean a room on your own so you know how long it takes and what tasks must be done. Work in the kitchen to familiarize yourself with the menu and to know how long certain meals take to make. For a shift, work the front desk so you are aware of how many customer complaints occur and what issues your employees handle. Talk with the valet and the maintenance staff so you are aware of what a typical day looks like on their end.

When you have this experience under your belt, you are a far better manager. Not only do you have hands-on knowledge but the employees will respect you more because you possess that knowledge. They will know the decisions you make are based on genuine first-hand experience and isn’t just a willy-nilly decision.

Hire Right

Hiring the wrong person will just cause immense frustration for you. Your job is tough enough as it is—if you’re going to have to clean up after another employee’s messes, forget about doing a good job at running a hotel.

Your job will never run smoothly if you’re constantly picking up after someone else. That’s why you need to hire dedicated, honest, and skilled employees from the start. If you have employees who steal or lie, are rude to customers, or do a poor job, then you need to let them go. With the right employees, your customers will be much happier!

Don’t rush the hiring process, take your time, and be sure to ask the right questions. Try asking behavioural questions to bring the best candidate aboard the team. Behavioural interview questions are meant to force the candidate to avoid giving a generic answer but rather relying on their personal history.

Reward Star Employees

When an employee does something exceptional, praise them! Do it right away, be sincere, and do it publicly. If you have an Employee of the Month program, send a congratulatory message to the employee straight away and update the photo of the new “winner”.

By doing this, you create happier, more productive employees who will go above and beyond without being asked to. In addition, builds trust and appreciation between employees and senior management while creating more loyalty (i.e. less turnover).

Additionally, if a customer raves about an employee and how they helped them, you can share this with all employees to help push employee recognition and engagement.

Have Amazing Incentives

Drive engagement, boost motivation, and keep employees happy with amazing employee incentives. It’s not all about raises and promotions, employees need more to keep them working hard and loyal.

You need to think a bit creatively to get your employees energized – bring in breakfast or pay for lunch, give scratch-offs for a job well done or even a Netflix subscription, write a hand-written note, and more. You don’t need to dig deep; a simple gesture can make all the difference.

Rewards

https://inspiringhr.com/inexpensive-employee-rewards-infographic/

Create A Positive Work Environment

Treat all your employees well! This will keep them loyal to your company, which in turn helps lower the turnover rate. By creating a positive work environment, you are building comradery amongst employees who respect one another and each other’s skills. This will help employees take pride in their work because they know their co-workers admire their abilities. Creating a positive work environment is as simple as smiling, celebrating birthdays, and personal achievements like marriage, buying a new house or car, or the birth or adoption of a baby. When employees have a positive environment to work in, they feel more positive and this reflects in their work.

The success of a company boils down to a sound, unmistakable company culture, found in a Deloitte study. In the study, 94% of executives and 88% of employees came to the above statement. And if those numbers weren’t enough, in addition, they also found that a whopping 76% of employees agree that a “clearly defined business strategy” helped to create a positive culture.

The Hotel Industry Thrives on Location

Location plays a vital role in the success of your hotel. So what is the best location for a hotel?

There’s no clear-cut answer to this question. To figure out the best option for you, turn to tourism statistics. For example, you can get info to help you understand:

Keep an Eye on Those Reviews

Feedback can help you improve your whole property — but you can’t just rely on checkout feedback forms. After all, your guests won’t limit themselves to that. They’ll go to the internet to share bad experiences on social media or review sites.

What can you do? Read all new reviews posted about your hotel and respond to angry customers with a soft reply. Remember: Word of mouth is your most powerful marketing tool.

Bonus tip: Keep an eye on your competitors’ reviews, too. Use reviews to determine their strengths and their challenges. Then, make sure you’re taking the steps to thrive where they’re falling short.

Generate Great Leads

The ticket to bringing in the big bucks in the hotel industry is group business.

That means you have to seek out planners and make yourself discoverable. You have to meet planners where they are and distribute your content through those channels. You can’t just count on customer referrals!

With a powerful, interactive lead form, distributable across any marketing channel, Social Tables makes it easy to build your direct bookings business on your website and gain increased exposure in our venue marketplace. Not only will you show up for 100,000+ registered planners consistently looking for venues, but you’ll also be able to customize your listing so you’re putting your best foot forward for all of them.

Give Customers an Innovative Experience

The modern hotel industry is about much more than just providing accommodations and room service. You need to provide an overall innovative experience to your guests by identifying their needs and expectations. The young travellers who usually spend less time inside the hotel can be attracted by other activities. Live concerts, poolside fun, fitness classes, spas, and special culinary experiences are all among the list.

Keep Your Guests Safe

A thorough understanding of safety rules and the ability to stay calm in an emergency situation are both crucial. Keeping your guests safe and secure should always be your biggest concern.

Make sure all sprinklers and smoke detectors are in working condition, hygiene and cleanliness are maintained in the entire hotel – especially in the kitchen – swimming pools are cleaned regularly, room service is up to date, and guests’ complaints are top priorities.

Give Managers Flexibility

Customers can have completely different expectations of a hotel. By giving your hotel managers the authority to make decisions under critical situations, you empower them to accommodate your guests in a timely manner. This decision-making power gives them an opportunity to turn an unlikely situation around and earn a good reputation for the hotel, along with customer loyalty and satisfaction.

Be Observant

To provide the best experience to your guest, be highly vigilant to every minor detail of the hotel. It ranges from greeting your guests with a smile on your face to putting fresh flowers in the vase of the hotel lobby, providing impeccable customer service, serving fantastic food, keeping properly folded napkins, maintaining an efficient checkout, and so much more.

Invest In Property Management Software (PMS)

With property management creating rage and likely to reach $23.63 billion by 2026, rising technology penetration is expected to bolster growth. And, it will be your one- stop solution for managing the hotel’s business.

A PMS is a solution for successfully managing the day-to-day activities of your hotel or vacation rental. From reservation, housekeeping, maintenance, analytics to billing and reporting, a PMS reduces labour and time-intensive activities.

Beyond capturing the financials and reservation, a vacation rental property management software works as a centralized hub providing guests’ crucial information, staff productivity, guest engagement, revenue, and reporting.

Imagine the first impression of a guest who walks in the hotel to see the front-desk staff ready for their welcome?

A PMS displays the arrival for the day along with the stay preference. It creates a memorable experience for the customer. Apart from enhancing customer service, property management software works hard to manage the room occupancy, booking, etc. Even when someone cancels the room at the last minute, the software shares the room availability in real-time, allowing you to adjust it.

Benefits of investing in a PMS are:

Reduce Your Labour Cost

With labour costs contributing to a whopping 50% of the total hotel’s operating expense, it makes sense to reduce the cost to manage your hotel’s business effectively. But you cannot achieve it by simply laying off employees or reducing their salaries.

The savvy hotelier is the one who saves money while delighting the customers and without affecting the day-to-day operations.

Ways of reducing labour cost are:

Focus on Online Reputation Management

Did you know that 81% of online customers still read reviews on trusted sites like Google, TripAdvisor, and booking.com before booking a hotel room?

Online hotel reviews are either a source of motivation or worry for hotel owners like you. Word of mouth or online reviews can spread your business to a large extent. But, merely receiving reviews isn’t sufficient. You need to acknowledge and respond to them on time for the reviews to become an indispensable asset.

Your reviews affect your sales volume and, eventually, your revenue. That’s why you need to focus on your online reputation.

When a hotel increases the review score by 1-point on a 5-point scale, they tend to increase the profit by 11.2% and still maintain the same occupancy rate

Online reputation helps you gain a competitive edge, which increases the footfall on your property.

Benefits of managing online reputation are:

Conclusion

Hotel owners like you have the opportunity to capitalize on the guest’s appetite for a unique and memorable experience. So, start by efficiently managing your hotel.

Hotel management, in many ways, is an art form; it requires the right mix and balance of technology and industry trends. You cannot randomly pick up a technology and pray with closed eyes for it to work. Managing a hotel requires meticulously planning and investment in breakthrough technologies to deliver above customers’ expectations.

It’s also essential to understand the team’s culture, accept individualities, differences, and know what motivates the team to create a working environment wherein every staff member strives to deliver exemplary customer service.

Apart from employees, internal communication and delegation of work are vital ingredients for hotel operation. A wrong decision in either will play a spoilsport and ruin your efforts.

Remember that managing your hotel’s day-to-day activities plays a vital role in building a rock-solid reputation. Use these management tips to ensure your hotel runs like a well-oiled machine!







So if you operate a hotel, motel, B&B or any other type of accommodation business and are looking for a PMS, check out Castellan Systems’ Innkeeper and our Posada website template. You can check Innkeeper’s features on a free 30-day trial.





This article is based on material originally published on https://partners.hoteltechreport.com, https://connecteam.com, https://ehotelier.com and https://www.socialtables.com
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