Traditional hotel business models have often centred around finding a sort of sweet-spot in the industry and sticking with it. The owner had executive power over all major decisions, and management would be in place to mostly assure the smooth running of everyday operations.
It was a more feudal approach to running a business, one that relied on the repetition of practices established by the previous generation of employees, and tradition was a sign of integrity.
That said, the rapid expansion of the global hospitality market has left many hoteliers struggling with finding a unified approach to building a thriving business model. The reason for this is that their approach to change management is all backwards.
Modern hotels thrive thanks to hoteliers adopting a flexible approach to their change management strategy. They treat the hotel as a constant work in progress, one that is evolving and growing with each successful policy change implementation.
If your hotel is going through changes in some of its functions you must have asked yourself “Is this truly the right path and will it lead to long term return of investment?”
There are several key points you can check in order to determine the impact of these changes:
- The reason for adopting a change is a solid precursor to its success or failure. If you have adopted a new hotel marketing strategy targeting millennial travellers through an active social media campaign just because competitors seem to be utilizing the same process successfully, you might not receive the ROI you were hoping for.
- Following a competitor’s footsteps will almost always lead to a lukewarm market response unless you have something to add to the equation that would effectively improve on the process. And this requires a plan of action that has taken in all variables before the change was ever implemented.
- A clear and evenly paced plan is at the base of any successful change management strategy. But in order for such a plan to come into being all levels of the organization need to contribute.
- Communication between employees, management, consultants and stakeholders needs to be on par otherwise not only would valuable information be overlooked, but the parties left involved in the making of the plan would be less likely to prioritize its implementation.
- Setting down firm goals based around certain milestones of the plan would help staff and management stay motivated throughout the process. Challenges along the road are inevitable but having milestone achievements along the way would keep personnel dedicated to the completion of the task nonetheless.
- Hospitality is an increasingly data-fueled sector which demands qualified experts such as data scientists in order to properly make use of all the information being collected. Even the best of plans and intentions could only take a strategy so far if there is no one to evaluate the data collected by the hotel and seta course for improvement.
- The right hospitality software is absolutely mandatory when it comes to planning and implementing new revenue strategies. The analytics acquired from a property management system is crucial to your performance reports, setting budgets and making educated forecasts as to what the next year will bring.
- A hotel management software that can do much of the analytics involved in running a hotel is invaluable when change management is involved. The tool itself can help minimize the risk by collecting the data used for projections of the possible outcomes of the change. This allows data analysts and managers to pick a strategy which would improve hotel practices without jeopardizing revenue sources in the process.
Credits: How to Make a Change Management Strategy
How to Use Change Management to Optimise Your Revenue Strategy
Hotel revenue optimisation can often come at a high cost to the hotel owner. Much of hospitality depends on providing a low-cost high return service, fueled by largely unskilled labour and what many hotel owners consider a straightforward return of investment. After all, a hotel provides a service which is an absolute necessity for modern living.
But with couch-sharing hospitality becoming increasingly normalized, hotel owners have found themselves in a predicament, they are now competing with a myriad of new hotels that have cropped up overnight.
Traditional hoteliers are then faced with a choice, pretend like they can compete on even footing with new-age hospitality providers or act immediately and implement changes that would improve their hotel’s position in the hospitality community.
The first kind is inevitably going to be forced to reconcile with the fact that they are losing business to house-sharing apps and OTA listings which will inevitably drive them to make hasty changes in an effort not to let their revenue margin shrink. While the latter would not only avoid this predicament but also create opportunities for growth.
Some of the changes made by hoteliers who think ahead involve hiring more qualified staff members, especially ones with degrees in statistics and data analysis. Having in-house experts who are in the loop of the daily operations of a hotel can make a drastic change to the revenue management strategies employed in a hotel.
The cost of qualified labour in hospitality is bound to rise as more and more hotels are cutting down on traditional personnel in favour of self-service, as many hotels simply do not need large number of staff in order to handle a fully booked out hotel.
Expanding also means adding more services in favour of increasing revenue margins which inevitably leads to a re-pricing strategy for room rates. Revenue optimization software can aid your experts in keeping your hotel’s room rates up-to-date across all distribution channels while also guaranteeing that room-rates are priced competitively without being undersold.
Read more: How Revenue Control Works in Clock PMS+
This will inevitably affect occupancy which is where your hotel management team and analysts can create a strategy to more effectively make use of overbooking practices, so as not to lose revenue due to last-minute cancellations. With the help of your PMS, this can be gotten down to an art form, with staff regulating the percentage of rooms that can be overbooked each quarter or based on seasonal demand, while your hotel software automatically re-uploads late cancellations so that room availability is always up to date.
Revenue optimisation strategies now depend on how well you handle change. Do you shun it or do you embrace it and look to what lies ahead?
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About Clock Software
Clock Software is a global provider of cloud-based property management systems (PMS), integrated online distribution, online & kiosk hotel self check-in solutions and mobile & in-room guest engagement systems with customers in more than 65 countries.