In today’s competitive environment characterizing the hospitality industry, there are numerous aspects that are crucial to the successful running of a hotel.
It is almost impossible for a hotel to be running smoothly all of its crucial day-to-day operations simultaneously, such as its F&B, its accounting and Marketing, its Human Resources and all other departments.
A hotel can be doing well by itself in some of the above aspects of its running but, certainly, not in all, thus, compromising with getting less out of other aspects. The end, overall result is as destructive as not doing well in any of the given aspects.
The problem lies in the fact that small and medium-sized hotels cannot operate based on expertise at all levels, mainly due to the cost involved. For example, a medium-sized hotel could never afford to permanently employ an expert in its Sales Department, whereas a Hotel Management company can have several top experts in its team.
Economies of scope
A Hotel Management company will treat each problem a small-sized hotel may be encountering, with exactly the same attention it would use for a large enterprise in the same situation. The reason is that the Hotel Management company has been tackling such genre of problems many times over for several hotels ‘ clients and as a result the expertise has mounted up.
This enables the company to provide fast and effective action which the hotelier could not provide, as such, all alone. In addition, Hotel Management companies can spend ten times more time to eliminate a problem, something impossible for the small hotelier who has to simultaneously manage all other aspects of operation and lacks the time. It is obvious even by studying the term from a financial angle. https://en.wikipedia.org/wiki/Economies_of_scope
Wint to Win!
Small-sized hotels are facing countless challenges on a daily basis that are related to nothing else but the competitive environment within which they are operating. In most cases, this results to emphasizing only to the basics, such as, the day-to-day operations thus leaving other crucial aspects of hotel operations completely untouched. Usually, the total absence of critical departments such as Marketing & PR, Financial, Budgeting etc, is unfortunately common practice.
The advantage of hiring a Hotel Management company to run and manage your hotel, is that it will succeed in helping your propertyA�achieve its maximum potential via the use of tools that hoteliers do not always have at their disposal or even if they do, they not always know how to use them to their full extent.
Expertise in HR is yet another advantage since a Hotel Management company can filter the appropriate Manager that suits your hotel out of a group of 300 candidates that have been through a certified interview process. The Hotel Management company is equally able to shift and rotate employees from its pool of candidates, so as to maximize results according to the needs of each of its hotel-clients. For example, it knows well exactly when a Hotel Manager with corporate features and a rather formal personality should be placed within a City hotel and, when a more outgoing and enthusiastic Hotel Manager should be shifted from the “strict’ atmosphere of a City hotel to a Resort in order to offer his/her interpersonal properties to their maximum possible effect.
HR & Employment training
The process of recruiting and management training is a process which as many as 90% of small hotels is not even aware of.
The training provided by a Hotel Management company operates as a long-term career goal process to the consciousness of the employee. Especially with the problem of seasonality in the tourism sector, neither the hotel nor the staff can create a relationship of trust focusing on the training that will target a long-term cooperation. On the other hand, a Hotel Management company via its corporate way of thinking knows better that staff training pays back for your investment and that the candidate will remain loyal to the company’s suggested positions for longer. Thus, continuous training of employees creates a win-win situation between the employee, the hotel and Hotel Management company.
Tools and the power of outsourcing.
Small and medium-sized hotels often turn to cheap solutions in order to cope with the above. Therefore, they will never buy and set up a serious PMS or other tool to their advantage in preferring to spend their money for the very basic and absolutely necessary needs of their hotel’s operation. Nowadays though, even the aspects not deemed necessary by a small hotel, are indeed necessary.
A serious Hotel Management company is able to hire the best outsourcing companies for any given situation and to the benefit of the small hotel that will receive services equivalent to those previously offered to large hotel chains only.
Recently, HotelBrain – www.hotelbrain.com a company that was awarded at the World Travel Awards as the Best Hotel Management company – created an Online Marketing Department via which it provides a 24/7 supervision service to all Online tools for each and every hotel it manages. HotelBrain has also set stringent technical standards as far as website development and similar issues are concerned.
If at Panadvert, we analyze our own expertise in Online Marketing and how it has evolved in recent years with all those new available tools and the opportunistic perspectives that arise via using them, plus, the know-how and the knowledge of the cost needed for a hotel to spend in this field alone, we would confidently state that if a hotel does not have a turnover of at least 3 million euro it is almost impossible to achieve the best exposure in the digital environment. It is precisely this inability characterizing small hotels that Hotel Management companies can cover in the best possible way.
Inter-Loyalty & intra-Loyalty
The above needs in Marketing are covered by hotel chains themselves such as the Small Luxury Hotels of the World and others. The difference with the large Hotel Management companies is that all needs pertaining to all departments are covered and not only those related to Marketing.
” When hiring a Hotel Management company you are connected to the network of suppliers and contractors and you save on the purchase of high-quality materials and services.
” In choosing the right Hotel Management company the implemented personnel management standards can reduce payroll costs by 12-15%.
” You save significantly on costs for staff training and professional development.
” The well-organized Sales and Marketing system of a Hotel Management company will attract new guests on your behalf and will increase your revenue by 15 to 40%.
” You secure the highest standards of service which results to maximum guest satisfaction.
All of the above suggest to a very positive and rosy outcome. However, trust is always a critical element which must flourish first between the hotel and the Hotel Management Company, in order for things to go well in the long run. When it comes to small and medium-sized hotels, the owner regards his property as a little baby that is not meant to be given up for adoption. Hoteliers mostly turn to an emotional approach instead of the plain old common sense.
Photo: The Grand Hotel Budapest Film http://www.imdb.com/title/tt2278388/
A hotel will thrive with financial success only as part of a very good Hotel Management company and only in the case it will follow loyally the strict instructions and guidelines set by the company.
What hoteliers have to do is to adopt a more forward way of thinking in order to strengthen and stabilize their hotel’s brand name and to achieve their property’s sustainable status in perpetuity.
Within the competitive environment of the 21st century, Hotel Management companies are considered to be the turnkey solution for small and medium-sized hotels wishing to operate successfully.
It is the sole way small hotels can compete with large hotel chains and hotel groups.