A winning strategy in the hospitality industry
What's a hotel strategy?
A hotel strategy is a detailed plan that explains how a hotel or hospitality business plans to reach its goals and objectives. It looks at important parts of running the business, like:
How to stand out in the market
Making sure guests have a great experience and are sold on the hotel
Marketing and sales
Operational efficiency
Sustainability and social responsibility
Adaptability to market trends
Training and growing the team
In short, a hotel strategy is all about the daily and long-term steps you take to do well in the hotel business.
A winning strategy in the hospitality industry
Having a hotel strategy is like having a detailed plan that helps you hit your business targets. It makes sure every part of the hotel, from making money to taking care of guests, is all working together towards the main goals.
The best part is, a solid strategy lets hotels adjust to what's happening in the market, reach the right people, and use their resources wisely. This means more money, happier customers, and steady growth for the business.
Who's in charge of the hotel's big plan?
The hotel's main boss, or the general manager (GM), plays a huge role in making the hotel do well. Basically, they're the ones everyone looks to for advice or solutions, and the go-to people for making the hotel busy and making money.
It's obvious that general managers are pretty smart and know a lot about the business.
But not every hotel can have a GM, or even a real expert in the business!
We're here to help out to the owners and managers of hotel structures at every stage of business development, trying to provide you with all possible tools for development and success.
Based on my experience, I've learned that every hotel owner, manager, or person running a hotel wants solid and workable solutions, but they often don't know how to use them in their own place!
So, we're going to share a few simple tips for making a successful plan in the hotel and tourism business, totally free!
How important is the human factor?
Our sector is characterized entirely by the "H to H" (human to human) factor for work and development. “H to H” (human to human) факторът factor for work and development. We know well, from all the research made so far that our human nature is a combination of two poles: spirit (soul) and heart (body), we were created in the rhythm of the 2 steps (with respect to all heterogeneities of rhythms 2/3 etc.).
Let's then talk about the hotel business using the concept of "bi-polarity," which means being positive but not in the same way as people with schizophrenia.
We're focusing on hotels that have great stuff but not enough rooms, are in a good spot but not well-known, have a lot of services waiting to be offered but haven't yet, could attract many customers (like events and bookings directly), but don't have the service, trained staff, or a proper system for handling guests.
It's like a hotel that's just starting, with everything still just a dream and needs a solid, well-thought-out, and professional plan to make it happen!
„Стратегия на паралелното развитие“ като печеливша стратегия в хотелиерството.
Taking into account all these "bipolar" factors, we can offer the classic Strategy of Parallel Development: : “"ad intra" and "ad extra" (inside and outside),which in tourism and hospitality is expressed in:
ad intra (on the inside)
organization of the service through models and procedures to increase the effectiveness and reduce the time of the provided service, as well as cost optimization (frugality, but not at the expense of the quality of service) andincentives for the staff (the most the important factor in Tourism and Hospitality: People serve People through services satisfying human primary needs - sleep / food / culture and entertainment...
If People / staff/ are not prepared and motivated, People /guests/ will not be satisfied and will seek "hospitable" people elsewhere, despite the uniqueness of the place!
ad extra (outside)
attracting customers (people) by offering clear and adequate services and authentic ways of offering existing or new ones, preparing a marketing strategy in the near and long term, increasing the quality of service, creation and appropriate selection of channels for communication and for offering our tourist product through:
creation of new service packages guided by new trends (e.g. "all inclusive" is no longer relevant, but more and more, the already satisfied customer , search for "all exclusive” VIP personalized service increasing revenue, increasing the value of the units for sale (room apartments) through re-investment in the sector (it is a tourist rule that at least 20% of the annual profit is reinvested in the structure).
The 3P’s
For the implementation of a profitable strategy in the hospitality industry, we can turn to strategy of simultaneous development (ad intra et ad extra), we suggest that we turn our attention specifically to the following parallel concepts called theThe 3P’s (or managerial rules for success):
1. Procedurality (Consistency)
In the hospitality industry, the silver rule is "We return everything to the starting position", that mean, the same, established and approved product - accommodation + services - is offered again and again every time, at the same level and in the same way, each new day!
This is the challenge for every hotelier - to be able to maintain or even improve the offered product. We all know, the opposite often happens: the quality of the initial proposed product is "Bulgarized"! "Let's go see it before it's ruined!”
That is why procedurality is the guarantor of compliance with this silver rule, and an occasion for upgrading! Observing pre-made procedures specific to each individual hotel, any employee trained in them can guarantees the quality and integrity of the product! Having the established procedure, we can also move towards an upgrade, if it is adequate!
This is where specialists - managers - are important for owners of accommodation structures. We build procedures - rails for the train to run on! To have solvents and ways for a successful product! And we're here to help these rules get your structure off the ground!
2. Positivity (Transparency)
There are ways of observing these rules, procedures and that is transparency! If the customer knows exactly and clearly what he is getting, he trusts to get it next time too! All procedures must be clearly communicated to the staff so that they can perform them correctly!
And if something goes wrong during the return process, you can easily find where the error is and fix it! This creates positivity in the work process and builds trust with both clients and staff.
Transparency is also a factor in working with cash flow. We know very well that it is difficult to "control" staff, or it is difficult to trust people. By training them to carry out the procedures transparently, we can easily distinguish the people we can trust - those who carry out the procedure transparently and correctly !
3. Productivity (Professionalism)
This is the last and most important key factor for a well-prepared strategy! We will recognize them by the results! Successful managers show results and this creates trust and hope in the process. We all want productivity and that our product can be implemented adequately, but this only happens if we are professional in what we do !
The hospitality and tourism sector needs a management organization capable of innovating and driving competitiveness to keep up with the times.
The activities involved in general management are innumerable and all are equally important to ensure both the efficiency and the start-up or take-off of the structure itself.
We from Hotel Help believe that we can professionally help the productivity of your structure!
We’ll keep going by sharing more key parts of the Parallel Development Strategy, seen through the lens of our well-known terms about a new living setup :
Face 2 Face The Art of Personalized Guest Experiences: Elevating Face-to-Face Services in Hotels
ad intra Creation of a new face of the accommodation structure and of the new owners, if the previous such "face" in the tourist market does not exist.And if there is, it should always be improved!
This is done by forming a functioning management team (trained manager, owners and consultants) capable of responding to the needs and projects related to the accommodation.
This team must be the "beat", an active heart, beating in one rhythm to start everything functioning as one body.
How ?
Breaking the clumsiness of management through the pyramidal-hierarchical structure, adapting the new and already tested formula of circular manager structure = the responsible manager of the department/unit actively participates in the execution of the tasks - he sets an example by "getting his hands dirty", so he directly monitors the execution, quality and result. Sharing responsibility!
ad extra - Introducing ourselves to the already existing market with a clear, methodical and organized face, we will be able to talk about strategies and new markets.
The customer will be able to trust (trust opens the wallet!) and demand other, new services, bringing new revenue, he will stay in the structure for the already existing services, but will talk about it with positivity and do direct advertising because of the new seen here.
By having a clear understanding of the target clientele, management will be able to communicate and direct their attention and efforts to this type / person / customers and create packages and strategies leading these customers back.
Not only the client will be able to choose us, but we will be able to choose the client!
As new to the market, the customers themselves will help us improve and optimize our services and service and we will be able to use their feedback for marketing strategies and bring other customers.
The Method
ad intraCreation of a adequate method: procedures and operational rules for the realization of the objectives!
NOT "The result justifies the actions"
BUT "The result DETERMINES the actions"
At the same time, we're already out there in the market, trying to make the old hotel rules better. We're going to try out new ways and strategies, but they need to actually work in real life, not just be ideas on paper.
With developed method/procedures it will be easier to operate and train new personnel to reach"multi-functionality" and mutual assistance, and even replaceability in future service. That is, everyone will be able to help (up to a certain level) the other, following the procedure related to their work (written procedures).
* Example of a Reception: A receptionist will know the specifics of the tourist market in the region of our hotel and could be a "guide" for them.
The receptionist will guide the client to a suitable experience outside the hotel with current events and tours around the region. Will be trained to assist the manager when to makes him free with tasks to override him and leave him focused on his specific duties i.e. bringing in new people and clients.
They will train together with the manager to be able to work in a team and in sync. They will leave a report with things important for the day and which are expected in specific wings, so there will be distribution and awareness for the rest of the team as well.
Likewise, the manager will be flexible to perform customer service activities in order to satisfy the needs of the structure of presence and management decisions by applying the Flexible Managerial Schedule.
ad extra - Simplicity and openness for the client. Clarity - transparency of the offered product.
When I know what I'm buying and how it works I'm more likely to buy it again! We will make the customer enter in our way of doing the things, in our method (knowhow), by buying a new product from us, the client will learn hot to use it ! (the example with Apple: success is in clarity and specificity, the owner of the iPhone must learn to work with it and not the phone to adjust to the client!)
Having procedures and a method, the hotel will also help existing customers in the region, looking for something different - we will "train" them to "get into our game" so that things can happen.
That way, we will have a clearer idea of exactly what service or product we should offer and how to communicate it. "By the method you will reconise them..." this will be the difference that we will offer to the competition market - we will be"exclusive", that is, we will be original.
Having a new method, we will also be able to talk about:
- determination of cost per night and the service
- average price before the season and apartment type
- promotions and service packages
- contracts with tour operators
- income / expenses / balance / profit...
- average employment and how to increase it starting from the base.
Creating a unique approach that's not just based on theories, but also when we start using the structure, by looking at current services and the new ones we plan to introduce, following the "trial-error-learning-development" methodwe can stand out and bring something fresh to the market without just hoping customers will come on their own, like they do in a store!
In the absence of originality, it will turn out like the existing structures: nice, but empty!
The Motivation
ad intra Inside the company, we need to build trust, identity, and our unique way of working, along with being productive! !
Bonus system:
Classic one $ (Starting money) + HR (human resource) = $$ (doubled first capital)
Encouraging: $$ (first cap + additional budget for bonus money) HR and $ (човешки ресурс + бонусна с-ма) = $$$$ (double first capital and doubled bonus capital), that is, we are talking, not of doubling, but of tripling
(the initial investment is multiplied by the human service, if the human factor is initially thought to be given, then it is more productive!)
For management team: unit-bonus system. In the management structure, the incentive and fair competition must be concentrated, the bonus budget (productivity bonus) must be distributed in 1 unit (one but a larger amount), that is, in the specific case for small structures: a percentage of the turnover.
For the executive operational staff pluribonus system. The budget determined for the bonus should be divided into several units to be given to employees who are motivated, "awake", concerned, who willingly took into account their assigned task and thus produced more for the company! Example 13th salary (in Italy there is even a 14th)
ad extra – “The client always has the right (even when he doesn’t)" the golden rule in tourism! Even if we lose BGN 10 for 5 complimentary coffees, we earn BGN 120 from this reservation, and if it's a group...? It is necessary to work towards a simultaneous increase in the quality of the offered products quantity of customers.QQ).
So, according to our readiness and capacity, an employment strategy will be applied according to the formula: Price - Quantity (inversely proportional - if we increase prices, occupancy falls...) The only factor that affects the approximation of this inverse proportionality is: Quality Q
Productivity
depends on the offered product, and for the hotel industry, it depends on Occupancy.
And since we have already said that the goal (productivity) determines the means (working time - that is, the time for which the set tasks must be completed /quality/ in order for things to happen.
Welcoming and serving the guests, then tach must be broken and distribute tasks and working hours according to needs, not according to a schedule like in a state institution from 8 am to 5 pm (with an hour break for lunch, which is also accompanied by an afternoon half-nap and with a 30-minute wait for the end of the working day...).
In the hospitality industry almost everywhere in the world there is talk of a floating work schedule determined by the occupancy of the hotel, especially in the created political, economic and health environment!
ad intra – Flexible work schedule especially for the management team! What does it mean:
Working hours: 8 hours/day, 40 hours/week and 22 days/month are distributed according to the Monthly model. Depending on the monthly occupancy of the structure, the manager's presence at the hotel must be ensured. That is, "we predict what will happen, and not slave to the consequences of what has already happened!”
For example : in the month of July we see that there is more concentration of employment towards the middle and at the end of the month, it means that the management staff will arrange their schedule in such a way that - there is always a manager in the main moments of the day when guests arrive and there is a manager in the days of the week with a greater workload (40 hours) and to have a manager in the weeks of the month with heavy workload.
By giving importance to the client, there is simultaneous relief, deconcentration of tasks in the manager's time. That is, it is more productive.
ad extra – Employment Adapting to the goal, i.e. employment, we will be able to be available to the Guests, respond adequately to the needs and services and monitor the quality so as to optimize the expenditure of both strength and energy and nerves and to use working time adequately - not to waste it!
The customer will feel constantly taken care of, will feel a constant presence and responsibility from the management side, Face 2 Face contact will be able to take place, so as to set the procedures in motion and help to increase employment, i.e. productivity.
The flexible schedule is made like this: if I have worked one week without a day off, then the next week, if possible, I will take instead of 2, 4 days off from the 8 due to me during the month, I will be able to rest - without interruptions, to be operational and to return to work charged with new forces.
If I want, I can, and occupancy allows it along with other people's schedules, I can work for a long period and take 5 consecutive days off, so that even in peak season I can take time for personal life or family.
All this is a matter of organization and taking responsibility on the part of the management team, so there is a "family" distribution of responsibilities, duties and tasks, and the Hotel does not suffer from neglect! (this idea will be concretized and further developed with the management team already throwing themselves into work!).
Purpose
Ad intra :
- formation of a management team (manager and owners and consultants)
- development of a method/procedure and organization of the robot process
- creation of new face of the Hotel and of the new Owners
- creating a pleasant and good environment for work - desire and conditions,
- gaining the trust of the executive-operational staff for creating a good spirit between them.
- cost optimization but not for account of quality and people (both customers and staff: people are not spared)
- transparency in both activities and accounting and financial flows.
- external signs of equality (uniform for staff) and division of responsibility (suit or management clothing for managers)
ad extra :
- product specificity -market competition with something different.
- gaining the trust of the old customers of this type of hops and making them ours and winning new ones - increase of the direct resolutions
- creation of Marketing Department and Social Media Strategies with specific tasks to accomplish before and after the opening of the hotel.
- entering the game with what is already there and
- looking for an increase in employment, getting closer to point 0, that is, the income should not be less than the expenses - in orderto be self-sustaining as a start, in order to earn in the future (after a year of collected energy and dobo and consistent management with upgrading and no staff turnover and services)
Conclusion
The objective should be to seek equilibrium, thereby ensuring that the hotel operates efficiently and begins to generate a return on investment, in the form of profit. !
