A lot has been said about the global meltdown and ways for companies to hold out during these difficult times. Given the current business environment, marketing specialists are trying their best to come up with the most feasible marketing mix as well as strategies that could help their companies reap the most benefit while keeping a restriction on spending, but few basic thing we tend to forget often, I would like to focus on those aspect in this article.
The hospitality industry is facing serious issues with the global economic and political uncertainties. This column will follow up on the challenging economic cycles in the last 20-year tenure as well.
With that in mind, I have taken three points and offer the following discussion points to hoteliers at the property level.
"Too often we measure everything and understand nothing.The three most important things we need to measure in a business are customer satisfaction, employee satisfaction and cash flow.
If we are growing customer satisfaction, our market is sure to grow, too. Employee satisfaction feeds you productivity, quality, pride and creativity. And cash flow is the pulse - the key vital sign of a company."
1. Measuring customer satisfaction.
The question then becomes "how to measure customer satisfaction?" There are a number of reasonable approaches, remembering how timely responsiveness must be to ongoing success. These include:
Mystery shopping can be an excellent way to view a picture in time of your total business or perhaps one outlet or aspect of your hotel. If done correctly, these unexpected, anonymous evaluations of your operations can provide insights to the customer experience. If conducted frequently enough, one can identify strengths, revenue trends and other opportunities.
There are assessments that are more inclusive available, including those provided by a number of members of Hospitality Consultants. They and others specialize in extensive analysis of operations, which can enhance the customer's experience.
2. Measuring employee satisfaction.
With multi-generations working at our hotels today embracing both the high tech and high touch of hospitality, the need has increased for additional training and development at all levels.
A handful of the major brands and management companies have evolved their corporate culture to address the need to maximize employee engagement and satisfaction , but I continue to see too many managers and owners paying minimal attention to their staff.
The successful owners and managers of the future will increase the commitment to professional development and training whenever and wherever possible throughout the hotel. The results will be better qualified professionals in more departments, providing better service while enjoying their careers.
3 Measuring cash flow.
Many people understand the concept, but not enough actively engage in measuring all the components. Regular proactive interaction with the sales team and front office management will help project more accurate short and long-term forecasts.. Understanding cash flow and position helps long-term profit improvement decisions, as well as anticipating capital needs and to justify them.
Measuring cash flow also helps ownership and managers realistically assess the operational performance of their hotel.
I want to share few strategies which include:
Take the lead on establishing and administering all financial systems and internal controls.
Create the guidelines and expectations for the preparation and updates of all operational budgets, forecasts, operating results, financial reports.
Identify the annual hotel's capital plan and establish time lines and protocols for implementation.
Implement firm procedures for the preparation of operational statements returns in compliance with government regulations, company, franchise and ownership requirements.
Set up and administer all government reporting and tax filing activities
Formulate and manage accounting policies that coordinate with ownership's or brand systems and procedures.
Operate as if you were a financial consultant for your hotel.
Monitor fulfillment with hotel and accounting policies and procedures, legal requirements and contractual obligations .
Manage the accounting department and other areas as appropriate.
Supervise the equipment and maintenance of accounting computer systems to secure best performance.
Maintain a accountability to the company and management.
As a member of the hotel executive team, share the professional expectations provided to you from ownership and/or management clearly with all members of the staff.
Increase the commitment to training whenever and wherever possible throughout the hotel.
The hospitality industry is facing serious issues with the global economic and political uncertainties. This column will follow up on the challenging economic cycles in the last 20-year tenure as well.
With that in mind, I have taken three points and offer the following discussion points to hoteliers at the property level.
"Too often we measure everything and understand nothing.The three most important things we need to measure in a business are customer satisfaction, employee satisfaction and cash flow.
If we are growing customer satisfaction, our market is sure to grow, too. Employee satisfaction feeds you productivity, quality, pride and creativity. And cash flow is the pulse - the key vital sign of a company."
1. Measuring customer satisfaction.
The question then becomes "how to measure customer satisfaction?" There are a number of reasonable approaches, remembering how timely responsiveness must be to ongoing success. These include:
Mystery shopping can be an excellent way to view a picture in time of your total business or perhaps one outlet or aspect of your hotel. If done correctly, these unexpected, anonymous evaluations of your operations can provide insights to the customer experience. If conducted frequently enough, one can identify strengths, revenue trends and other opportunities.
There are assessments that are more inclusive available, including those provided by a number of members of Hospitality Consultants. They and others specialize in extensive analysis of operations, which can enhance the customer's experience.
2. Measuring employee satisfaction.
With multi-generations working at our hotels today embracing both the high tech and high touch of hospitality, the need has increased for additional training and development at all levels.
A handful of the major brands and management companies have evolved their corporate culture to address the need to maximize employee engagement and satisfaction , but I continue to see too many managers and owners paying minimal attention to their staff.
The successful owners and managers of the future will increase the commitment to professional development and training whenever and wherever possible throughout the hotel. The results will be better qualified professionals in more departments, providing better service while enjoying their careers.
3 Measuring cash flow.
Many people understand the concept, but not enough actively engage in measuring all the components. Regular proactive interaction with the sales team and front office management will help project more accurate short and long-term forecasts.. Understanding cash flow and position helps long-term profit improvement decisions, as well as anticipating capital needs and to justify them.
Measuring cash flow also helps ownership and managers realistically assess the operational performance of their hotel.
I want to share few strategies which include:
Take the lead on establishing and administering all financial systems and internal controls.
Create the guidelines and expectations for the preparation and updates of all operational budgets, forecasts, operating results, financial reports.
Identify the annual hotel's capital plan and establish time lines and protocols for implementation.
Implement firm procedures for the preparation of operational statements returns in compliance with government regulations, company, franchise and ownership requirements.
Set up and administer all government reporting and tax filing activities
Formulate and manage accounting policies that coordinate with ownership's or brand systems and procedures.
Operate as if you were a financial consultant for your hotel.
Monitor fulfillment with hotel and accounting policies and procedures, legal requirements and contractual obligations .
Manage the accounting department and other areas as appropriate.
Supervise the equipment and maintenance of accounting computer systems to secure best performance.
Maintain a accountability to the company and management.
As a member of the hotel executive team, share the professional expectations provided to you from ownership and/or management clearly with all members of the staff.
Increase the commitment to training whenever and wherever possible throughout the hotel.
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