Every hotel manager needs to secure optimal property performance, yet there are plenty of examples of underperforming assets and properties that are not bringing enough value to neither their guests, not their investors. Mind you that both are always related in a very direct way.
Here are the top 5 factors that can help a hotel improve its overall performance:
1. Customer service excellence:
First and foremost – guest satisfaction is one of the most important success factors for any hotel!
Happy clients are most likely to return and share positive reviews that make the hotel look better to competitors and allow for price increases. All of these stimulate employee loyalty and morale.
Even in destinations with low competition, a higher rating score allows for higher room rates and better occupancy percentage.
Does any hotel manager need more reasons to take extra care of guests?
2. Revenue management:
Mismanagement of room rates, failure to optimize pricing strategies and meet high or low demand periods with adequate rates and policies, lack of sufficient distribution channels can result in a loss of revenue opportunities. Hotels need to make an extra effort to understand demand and employ effective revenue management practices in order to maximize revenue per available room (RevPAR) and overall profitability.
3. Quality of facilities and amenities and general ambience:
Maintaining high standards for facilities, amenities, and cleanliness is essential for the property performance. Regular maintenance, modern furnishings, comfortable beds, well-equipped rooms, and functional amenities all contribute to a positive guest experience.
This does not automatically mean that only a brand-new hotel can be successful. There are numerous ways for hotel managers to make a more “guest-centric” environment and take extra care in adapting the property and its spaces to the needs of the clients, even in the different weekdays or seasons. Does this bring ideas to mind?
4. Efficient operations and cost management:
Crucial managerial decisions are important for the efficient operational processes. Streamlining operations, securing proper forecasting of staff and resources can lead to optimizing costs, and maximizing revenue and are critical factors for profitability. On the opposite side, underutilization of resources, and high operating costs can erode profit margins. Improving productivity and controlling expenses in a reasonable manner are essential for maintaining financial viability and competitiveness.
5. Marketing and sales strategies:
Paying special attention to develop a robust marketing plan with strategies, target results and day-to-day actions of achieving those targets are essential for the success of any property. Or we can’t ever reach a destination if we don’t have a direction. So, defining “a Northern star” for all marketing activities, allocating budgets, monitoring performance and analyzing results is absolutely essential.
To put it in a nutshell - implementing strategic marketing initiatives and distribution channels increases visibility and bookings. Utilizing online travel agencies (OTAs), partnering with travel agents, participating in relevant events and exhibitions, and leveraging digital marketing channels such as social media, email marketing, and search engine optimization (SEO) can help attract more guests and drive revenue.