How to manage your hotel confidently during uncertain times
Uncertainty is a certainty for the highly competitive hotel industry! Factors from political and economic challenges, exchanges rates and legal requirements to fluctuating customer loyalty and technological trends all pose risks.
It’s essential to hold and maintain a strong competitive advantage no matter where your hotel is located, and no matter what circumstance is affecting the market.
Here are four ways that will help you stay confident that your hotel enjoys success through any uncertainties you may face.
Don’t panic! It’s tempting to cut rates in a bid to attract and maintain occupancy but often this isn’t justified and can take months, or even longer, to recover from. Instead, monitor your competitors while listening to both the market and consumers to guide your rate strategy. Learn more on how to keep an eye on your competitors.
Make decisions based on fact. Following your instincts on occasion is inevitable, but in general your decisions should be backed by metrics, facts, and figures related to your business aims, goals and objectives. This will ensure a stable backbone for your business operations and profitability, whatever the market conditions. Benchmarking data, analytics and marketplace insights provided by STR will help you comprehend market trends and allow you to make informed decisions.
Stay in tune with your guests. When you understand your hotel guests, you can keep your decisions consistent regardless of economic ups and downs. This will maximise opportunities in the market, grow consumer engagement, strengthen your reputation, and ensure profitability. We have written about customer profiling here.
Get support. The benefits of engaging an experienced hotel revenue management consultant is significant, particularly in times of crisis or uncertainty. An independent consultant will provide a professional and objective perspective to help clearly identify opportunities and risks without ongoing financial obligation or employment issues. In addition, a consultant can plan strategically without the distraction of day-to-day operations, improve your processes, and upskill existing staff. Here are five reasons why your hotel needs revenue management and you can find out more about the role of a hotel revenue manager here.
Revenue management can be outsourced to hotel revenue management consultants for as little as four hours per week. Revenue management raining can be given to existing staff and Revenue management and distribution audits are available to examine where improvements can be made.
We can provide a tailored revenue management service to suit your current needs and your budget. Contact us today for further information, we are here to help your hotel – whatever your circumstances.