More than anything else, the recent economic crises has left many industries crippled. Hospitality is no exception. With companies tightening their purses, corporate travel has suffered a major reduction.
The scenario on leisure travel is worst since the spendable surplus income with individuals has shrunk drastically. Luxury has taken a back seat in individual and family lives. The buzz word seems to be savings and hedging your capital as much as you can.
The overall negative environment has left many independent as well as branded hotels in red. Unable to pay their debt or even meet their daily expenses, the hotels are desperately looking for expert consultants and advisers to help them remain afloat.
The situation is really grim for those who have already slipped down the line.
The scenario on leisure travel is worst since the spendable surplus income with individuals has shrunk drastically. Luxury has taken a back seat in individual and family lives. The buzz word seems to be savings and hedging your capital as much as you can.
The overall negative environment has left many independent as well as branded hotels in red. Unable to pay their debt or even meet their daily expenses, the hotels are desperately looking for expert consultants and advisers to help them remain afloat.
The situation is really grim for those who have already slipped down the line.
Revenue Improvement and Customer Retention
Needless to say that the sales in a hotel is generated when a guest checks in, when people visit the restaurants, when conferences and events take place, when your health club gets membership and so on.
The final thing being that when you get foot falls in the hotel your cash machine gets active. The biggest issue therefore is to find how to get customers and get an ever increasing number of them.
The final thing being that when you get foot falls in the hotel your cash machine gets active. The biggest issue therefore is to find how to get customers and get an ever increasing number of them.
Pricing
It is a known fact that hotel prices get revised each year to meet the cost escalation due to inflationary pressures on the material costs. In other words, it also means that the hotel becomes out of reach for those who cannot afford it due to their budget constraints. It is therefore important that the hotel adds on new customers to its user list to make good this loss. www.mustardtravel.com/how-to-plan-for-a-romantic-weekend-getaway-in-chicago/
Hotel
It is like a pyramid. If the height of the peak increases, you have to add balancing width to the base to maintain the equilibrium. In a slowing economy however, this effort assumes far greater importance as both the height and the base of the pyramid shrink due to extraneous factors over which the hotel has no control.
The marketing team has to come out with such innovative ideas, schemes and packages that will in the first instance insulate the hotel clientele from getting influenced with these factors but in the ultimate analysis, ensure a continuous growth in the capacity utilization. www.myfavouritetrips.com/5-great-romantic-getaways-for-couples-living-in-chicago.html
The marketing team has to come out with such innovative ideas, schemes and packages that will in the first instance insulate the hotel clientele from getting influenced with these factors but in the ultimate analysis, ensure a continuous growth in the capacity utilization. www.myfavouritetrips.com/5-great-romantic-getaways-for-couples-living-in-chicago.html
Cost Rationalization
The most important aspect of operating economies in distress times is absolute control over its operating costs. If a hotel allows the costs to slip, the bottom line will also slip away. The issue that most hotels and especially, the independent hotels face is the quality of their MIS.
You can control your costs only if you know what your actual costs are and how do they compare with the industry norm or with your competitive set hotels. If you management information system does not generate true numbers, you would fail in your cost control efforts.
You can control your costs only if you know what your actual costs are and how do they compare with the industry norm or with your competitive set hotels. If you management information system does not generate true numbers, you would fail in your cost control efforts.
Profit
Ultimately it all boils down to a simple equation and that is that Profits equal to revenue minus costs. Have a control over these two factors and you will be able to chalk out a turnaround strategy for your hotel.
From the point of view of pure financial survival, factors influencing sales and cost economies play the most important in the revival of a financially sinking enterprise, the importance of people, product quality and delivery of top rate service cannot be ignored. All have to go hand in hand.
While everyone can boost of operating a hotel profitably in normal market environment only those with proven management skills, strong determination and complete dedication can turn a distressed hotel into a profitable venture.
From the point of view of pure financial survival, factors influencing sales and cost economies play the most important in the revival of a financially sinking enterprise, the importance of people, product quality and delivery of top rate service cannot be ignored. All have to go hand in hand.
While everyone can boost of operating a hotel profitably in normal market environment only those with proven management skills, strong determination and complete dedication can turn a distressed hotel into a profitable venture.