Hotels are eventually under pressure to renovate or upgrade in a way that attracts new guests. However, one of the biggest challenges is financial, as a struggling hotel often doesn't have the budget to make improvements. Keeping records of guest profiles is a valuable way to maximize marketing aimed at a loyal following.
One of the essential strategies to turn around a failing hotel is to start with a SWOT analysis, which considers the hotel's strengths, weaknesses, opportunities, and threats. It involves evaluating hotel assets and guest surveys to arrive at a plan for pointing the business toward success. This plan should emphasize direct bookings, which are more profitable than bookings made through commission-based online travel agencies (OTAs).
Share your SWOT analysis findings with hotel associates to help map out short-term and long-term transition strategies. Studies show workers can become disoriented when their job future is uncertain. So, make sure that your employees have advance notice of upcoming changes at all times.
Selecting the right Customer Relationship Management (CRM) software is crucial for a hotel to operate seamlessly when engaging with guests. A CRM platform allows a hotel to keep electronic profiles of guests, which includes tracking their reviews of visits. One of its most powerful marketing functions is it can send automated emails to people on your marketing list.
There are many ways to cut hotel operational expenses. First, you should prioritize costs so you can consider cutting items at the bottom of the list. Certain investments can reduce costs over time, such as more efficient lighting and a new HVAC system. Rather than growing a staff during a financially-challenging time, it's more effective to cross-train existing staff members as a precaution for future staff shortages.
Hotel representatives who communicate directly with guests at the front desk must focus on outstanding customer service. All hotel workers who interact with guests should be trained for better people skills. They should also be knowledgeable of the hotel's technology that delivers greater convenience to guests.
Staff members can develop negative feelings about their jobs when thrown into an awkward transition without a clear path forward. Your team should be prepared to handle the worst disasters imaginable in the transition process toward new technology and other hotel improvements.
Hotel managers must be on top of demand forecasting as a vital part of budget planning. It's important to stay in touch with metrics that matter most about your hotel. Accurate forecasting comes from experience and examining historical data.
Focusing on these strategies to turn around a failing hotel can cut losses and pave a path toward profitability. Contact us at Parkwest General Contractors to learn more strategic ways to turn around your failing hotel.
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