15 Jan Vision – the art of predicting growth of hotel profits in the future
According to a research conducted by the HSMAI Foundation, distribution costs of a hotel will continue to grow. In this special report, a hypothetical hotel with $ 3 million revenue incurs distribution costs roughly between $ 120,000 and $ 150,000. In 2015, these costs shall be between $ 200,000 and $ 250,000.
Besides this increase in cost, the hoteliers must try to minimize costs in other areas in order to maintain a sustainable level of profit.
But how to keep the costs low and increase the profit of the hotel?
This is the million dollar question, the question that everyone would like to be answered. A foolproof method does not exist; there exist multiple methods and strategies that vary depending on the nature of the entity. Each hotel is unique in its location, category and features. A practice, essential to carry on a business in a profitable manner, can be summarized in one simple word: Vision, predicting the future performance of the entity.
Why should we be concerned about the future performance?
It is quite evident, that having a clear vision of the future allows you to anticipate the course of events and thus earn better revenue. The problem is that, in a majority of the cases, only a few people within the organization have this perspective. Usually, it is the revenue manager who estimates room requirements, variation in prices and inventory control in order to enhance the performance of the entity. It is important, that the revenue manager and sales manager pay special attention to the varying employment periods, along with price fluctuations in order to ensure a steady income.
This vision of the future must be shared with all the departments such as front office, housekeeping (cleaning), restaurant and all the other departments, in order to help them align their resources to perform better in different conditions.
It is vital that managers at all levels be taught how to understand the predictions while emphasizing on the underlying significance and implications. The vision of the future is meaningless without a study of the environment wherein the entity operates. It is crucial to define the processes and tools used for predicting methods for enhancing profitability.
Forecasting performance requires a long-term vision. It is necessary to understand how the predictions will be integrated into organizational culture and how likely the entity is to meet these predictions under various demands, not only for expenditure control, but also for the generation of profit.
And as a hotelier, from where can I begin to “see the future”?
The first step is to acquire tools that allow you to always have a complete picture of the situation at hand: a channel manager and a booking engine, that send regular reports on the distribution, availability and room prices can make all the difference between a good and poor management.
The focus should be on easy and intuitive application of tools so that their use does not create a problem for the employees.
How do you behave in your entity?Do you have vision? Do you have the right tools for your project?
immagine in evidenza: http://goo.gl/Qe3ZrW