Welcome to our blog! We’ll break down industry data, offer profitability tips and share expert advice to benefit hotel owners and operators alike.
Next time we get together, we’ll look at improving Net Asset Value (NAV) our sixth and final Crown Jewel.
Proactive measures are key to survival and success in the hospitality industry. Getting ahead of what is considered to be the eventual economic downturn was the topic of a recent think tank hosted by Hotel News Now/Castell Project. I was pleased to participate in the panel discussion alongside fellow industry leaders during the International Society of Hospitality Consultants’ 30th annual conference and share a few tips that you can employ to get prepared.
As we seek out ways to get in front of potential declines, we suggest first looking at full-time employee ratios. Labor costs are a significant part of the profitability story and you have to start there to make sure that you have the right team, across the board, in place. Additionally, cross-training staff makes them more adaptable to whatever situation arises in the future which will be helpful in those lean times if we do have to re-balance staffing.
It’s also important to look at current year and previous year bookings, as well as bookings that were passed up due to high demand. A hotel can sell out -command premium rates – but the business that gets displaced is often your base business. We suggest actively reaching out to this misplaced business, providing actual need dates and offering a discounted rate for those periods. Also, be mindful to develop strategic partnerships. Reach out to those people now to build that business so that when you find yourself in need, you are able to leverage these relationships.
Other important points to note:
For more tips from the industry leaders panel discussion, click here to read the Hotel News Now article.
After data dips on the heels of multiple natural disasters, the U.S. hotel industry has reported positive results in the three key performance metrics in recent weeks. In comparison with the week of 22-28 October 2017, the industry recorded the following:
Overall, 18 of the top 25 markets reported an increase in RevPAR.
*Data source: STR
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