The ‘open secret’ chart to successful management.

The secret to successful management is to have a long term plan and strategy, but always be monitoring the market and competition for new trends and be able to adapt quickly.

The one does not go against the other but rather the two complement each other.

The first, setting a long term plan for improvement in operations, allows both owners and operators to gauge the success of improvements in the many areas of the plan. This will invariably be in ADR increases, successful transfer to higher yielding traffic segments. Less dependency on OTA’s, expense savings in HR, efficiencies in HLP, guest satisfaction, maintenance and many more are reflected in the plan.

Monthly results reflect the success or failure to reach goals, and benchmarking allows for continuous comparisons. Financial result reports and monthly meetings to discuss the result for the past month, the year to date and forecast results will do much to keep the management team focused.

Of course this is easier said than done in many cases, as it does depend on implementing new systems and reports, and adherence to in depth audits and discussions on the plan.

With clear direction and understanding of the ownership vision and the goals, management can implement the plan successfully and it will lead to improved profits and ROI.

And yet many properties and operators do not follow their own plans and targets but surrender to panic action that inevitably lead to worsening results and in some cases disaster. The OTA’s are smiling. They are usually the first pillar that operators clutch in the effort to get higher occupancies. Sure, revenues increase but the costs are much higher and the profits lower. Wear and tear also come together with the increased traffic, much of it perhaps from clients that do not take as much care of the property as others.

In other cases ‘free’ add-ons are the practice, giving away free or reduced food and beverage, free third or fourth nights, free amenities and more, all in the scramble to ‘outgun’ the competition. Then comes the HR squeeze, less employees, less service. Perhaps save some expenses on the landscaping and outdoor upkeep? That will make the arrival experience less impressive for sure. Cut down on portion sizes? Increase prices in the bar and restaurant? Smaller soap bars in the room? Increase parking rates?

The next thing to go is the planned small renovations in the rooms and public areas. They can wait an extra year while the revenue increases from the OTA’s………….NO, I don’t think so.

How many hotels have you visited or read about on Trip Advisor that sound like the one I have described? A lot!

Why? Because they did not have a plan, did not create a strategy and adhere I to it, creating a solid base on which to build a better, more profitable operation.

The clients of today, especially the millennials, are looking beyond the simple rate factor. They surely want value for their money, but they are looking for an experience when they stay. They are looking for a hotel that cares not just about the rate but is part of the community and involved in it. They are looking for a well kept hotel, clean and hygienic, and a place that they feel comfortable in, and a place that means something.

The independent operator today has to be much cleverer, redefine himself, and even reinvent himself to stay alive in the competitive field. While creativeness and trends are to be adopted when good, a long term plan and correct strategy are the right way to go about surviving and thriving in today’s’ cutthroat world.