problem solving in hotel industry

10 Common Hotel Problems and Solutions

Being a hotelier can be both rewarding and exhausting. Tending to guest needs and ensuring an exceptional experience at your hotel for everyone who walks through the doors of your lobby is a busy job — a job that is regularly made all the busier when problems inevitably arise. Hotel problems can present themselves in many forms. Whether it’s a guest complaint, a busted thermostat, paperwork problem, long line in the lobby, or cold showers, there’s almost always problems that need to be solved at a hotel.  

However, when problems rear their ugly heads, it doesn’t always have to be a giant distraction. Conceiving a plan of action for how to deal with various hotel problems and figuring out effective solutions ahead of time will allow hoteliers to roll with the punches and solve issues quickly.

Each hotel, depending on its location, facilities and customer types, will have a somewhat distinct set of problems they can expect to receive. Regardless, there are some common problems consistent across hotels, no matter their differences. 

The most common problems hotel staff members may encounter in the course of running a property include: 

• Lack of complimentary supplies
• Long lines at the front desk 
• Slow room turnover
• Lack of guest information from OTAs
• Low guest satisfaction scores 
• Closed amenities
• Credit card authorization forms that aren’t PCI compliant
• Staff shortages 
• Low hotel app adoption
• High call volumes at the front desk 

Let’s now take a brief look at each of these problems in detail and review a corresponding solution.

Lack of Complimentary Supplies

‍ Problem: Although it may not appear to be the most critical thing to consider, many guests will anticipate complimentary amenities such as shampoo, soaps, coffee and tea, despite the type of property at which they are staying (e.g., full service, limited service, luxury, etc.). Unfortunately, a lack of these types of basic room commodities can result in low guest satisfaction scores and negative online reviews — even if the rest of their stay is fantastic.

Solution : To keep your visitors as pleased as possible, hoteliers would be wise to stash large quantities of complimentary room supplies in closets and cleaning stations around their property. This ensures that housekeeping teams are able to easily access a reliable storehouse of these supplies quickly, no matter where they are on the property. 

And if your property belongs to a larger hotel group or management company, be sure to see if there are promotional deals available with certain brands that provide these types of products. 

Long Lines at the Front Desk 

Problem: Nobody likes long lines, and this is especially true when a person is waiting on something they don’t just want, but need — like a comfortable room with a bed in it. Long lines at a hotel’s front desk can be a real problem for desk agents as they can cause guests to become frustrated and argumentative.

Solution : Front desk staff at any hotel can improve their overall efficiency, streamline the guest experience and eliminate long lines in the lobby by offering a Contactless Check-In solution to guests before they ever set foot on the property. Contactless Check-In enables guests to go through the check-in process conveniently on their own mobile devices. This tool frees up front desk staff to spend more time fielding questions from guests and less time dealing with administrative paperwork.

Slow Room Turnover

Problem: The ability to turnover rooms quickly is one of the essential keys to success in the hospitality industry. If a property is short staffed, or just generally having issues running a housekeeping department efficiently, this can result in negative consequences for both guest satisfaction scores and a hotel’s revenue. 

Solution : Hoteliers need to do everything they can to ensure their housekeeping teams are able to turnover rooms quickly. This can include ensuring things like all housekeeping stations across a property are well stocked with cleaning supplies and accounting for other logistical challenges. However, technology also has a role to play in boosting housekeeping efficiency.

Contactless Checkout solutions enable guests to checkout at their own convenience from their mobile devices. These types of tools are highly valued by guests because they make a hotel visit all the more streamlined and peaceful. However, they also have the added benefit of informing hotel staff as to which rooms are ready to be turned at the precise moment a guest leaves. Essentially, this provides a housekeeping team with a real-time map that shows where staff members need to be on the property.

Lack of Guest Information From OTAs

Problem: OTAs can be very useful in generating reservations at a property, but they are not without their downsides. In addition to the problems inherent in the concept of rate parity, OTAs usually don’t provide a hotel with crucial guest information such as their email address. This lack of information can keep properties from building their own database of marketing contacts that could be used to promote loyalty programs and direct sales campaigns.

Solution : The key to solving this problem is to somehow add the registration of an email address to the check-in process. This information can be collected in person at the front desk, but this approach has the disadvantage of potentially provoking an uncomfortable question about why the hotel is requesting an email. Additionally this will slow down the overall check-in process and may lead to longer wait times for guests looking to collect their room keys.

Instead, forward-looking hoteliers should search out technology solutions that enable a Contactless Check-In flow that can be customized to capture this crucial customer data.

Low Guest Satisfaction Scores 

Problem: Bad reviews happen. It’s unfortunate, but it’s so. They can occur for nearly infinite reasons and they are the bane of every hotel manager’s existence.  

Solution: When one- or two-star reviews occur it’s generally best to find out why as soon as possible. Including a star-rating step in a Contactless Checkout flow that can be accessed through a guest’s mobile device allows hoteliers to identify dissatisfied guests early and potentially resolve any issues before they depart the property.

Closed Amenities

Problem: For a variety of reasons, a hotel may need to close services and amenities. The reasons why can range from the sun has gone down and the masseuses have gone home to a maintenance with a hot tub or sudden thunderstorm over a lakeside resort. Understandably, when amenities are closed, but guests are expecting them, this can leave patrons feeling less than pleased. After all, a property’s particular amenities may be one of the reasons guests wish to stay at the location in the first place. 

Solution: To minimize surprises, hotel management should do its best to ensure guests are made aware of the operating hours of guest services. It’s wise to include this information during the check-in process and make it available in each hotel room in the forms of brochures, pamphlets, etc.

If a hotel’s management team is forced to close amenities and guest services unexpectedly, it’s best to be proactive with your communication. Using a guest messaging tool that allows you to broadcast text message guests at scale with the relevant information enables you to ensure guests know before they find out on their own. Better to get ahead of this problem while the engineering team works on it. 

Credit Card Authorization Forms That Aren’t PCI Compliant & Lead to Fraud 

Problem: Many hotels are still using paper credit card authorization forms despite the fact that it is no longer considered PCI compliant to do so. Obviously, collecting sensitive guest information in such an insecure way is a significant problem for many hotels and can lead to thousands of dollars in lost revenue from fraud and chargebacks.

Solution: Hoteliers that wish to reduce fraud and chargebacks at their properties should look for PCI compliant Digital Authorizations solutions that are guest-friendly and easy to implement. It’s time to say goodbye to paper forms forever. 

Staffing Shortages 

Problem: Staffing shortages have been a problem for hotels since there have been hotels. For most hotels, staff shortages can be due to regional issues in the job market. However, as demonstrated by, and in the wake of, the COVID-19 pandemic, sometimes the worldwide hospitality industry suffers a staffing shortage at the same time. 

Solution: The solution to a staffing shortage is twofold. The first step is to build a recruiting program for staff at your hotel. Look at surrounding properties and find out if they offer bonuses and try to match them. Also, it never hurts to let candidates know that advancement opportunities are available.

‍ The second step in solving a staffing issue, is to lean on guest-facing technology solutions that can automate messages to guests and enable them to operate more independently during their stay. 

Low Hotel App Adoption 

Problem: Many hotels have adopted new technologies in recent years to address changing consumer behaviors (thanks to COVID), which is good news. However, many of these hotels have bet big on developing a native app for their properties, and that’s less good. Native apps have a relatively high barrier to entry as they need to be downloaded onto a person’s smartphone. For a variety of reasons, hotel guests generally fail to adopt native apps at scale .  

Solution: Hotels should opt for web-based technologies that can be accessed through the browser of a mobile device. This avoids the need for downloads entirely and allows for a more streamlined experience. Plus, hotels will find much higher adoption rates than they otherwise would with a native app.

High Call Volume at Front Desk 

Problem: High call volumes can be both good and bad at a hotel. A large call volume generally means (hopefully) that a hotel is full of guests, which is great. However, too many calls to the front desk can overload staff and leave guests waiting for answers. This is a problem that almost every hotel will have to deal with at one point or another. 

Solution: Offering a messaging solution to hotel visitors that works with the existing messaging apps on their mobile devices can go a long way toward cutting call down call volumes. Hoteliers that plan to add a messaging solution to their guest experience should look for tools that enable them to save valuable time through automated, broadcast and direct messages.

As stated at the beginning of this post, running a hotel is an incredibly busy job that requires hoteliers to plan ahead for problems. Knowing what levers to pull on and solutions to deploy beforehand can keep everyday issues from turning into minor catastrophes. As outlined above, the two most useful things for any hotelier in a time of need are reliable technology tools and thought-out plans of action. With these in hand, a savvy hotel staff will be able to ride out any problems they may encounter. 

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🌟 Mastering Problem-Solving in the Hospitality Industry: Effective Strategies for Success 🛎️

In the dynamic world of hospitality, challenges are inevitable. From guest complaints to operational hiccups, every day presents new obstacles that demand swift and effective solutions. To thrive in this fast-paced environment, mastering problem-solving techniques is essential. Here are some insights into effective strategies for problem-solving in the hospitality industry:

Anticipate and Prevent : Proactive problem-solving starts with anticipation. I believe in anticipating potential issues before they arise. Conducting risk assessments, analyzing past data, and staying updated on industry trends can help identify potential problems in advance. Implement preventive measures to mitigate risks and minimize the likelihood of problems occurring.

Effective Communication : Clear and open communication is crucial in resolving issues efficiently. I encourage open dialogue among team members to share concerns, ideas, and solutions. Training staff members to actively listen to guests and colleagues ensures that issues are fully understood before attempting to solve them. I utilize various communication channels such as face-to-face interactions, digital platforms, and meetings to facilitate effective communication.

Empower Frontline Staff : Frontline employees are often the first point of contact for guests and are instrumental in resolving issues promptly. I empower them with the authority and resources needed to address common problems on the spot. Providing comprehensive training equips staff with problem-solving skills and decision-making capabilities. I foster a culture where employees feel confident and empowered to take ownership of resolving issues independently.

Utilize Technology : Technology can streamline problem-solving processes and enhance efficiency in the hospitality industry. I implement innovative solutions such as guest feedback systems, task management software, and predictive analytics tools to identify and address issues in real-time. Automation helps streamline repetitive tasks, allowing staff to focus on more complex problem-solving tasks.

Collaborative Problem-Solving : I encourage a collaborative approach to problem-solving by involving cross-functional teams and stakeholders. Different perspectives bring diverse insights and creative solutions to the table. Organizing brainstorming sessions or problem-solving workshops where team members can collaborate to address challenges collectively is key. I foster a culture of teamwork and collaboration, where everyone feels valued and motivated to contribute to problem-solving efforts.

Continuous Improvement : Problem-solving is an ongoing process that requires continuous evaluation and improvement. I encourage a culture of continuous learning and improvement within any organization. Conducting regular reviews to assess the effectiveness of problem-solving strategies and identify areas for enhancement is essential. Soliciting feedback from guests, employees, and other stakeholders helps gain valuable insights and make necessary adjustments.

By implementing these effective problem-solving strategies, I navigate challenges with confidence and ensure exceptional guest experiences. Embracing a proactive and collaborative approach to problem-solving, leveraging technology to streamline processes, and empowering frontline staff to address issues effectively are my key strategies. With the right mindset and tools in place, any challenge can be turned into an opportunity for growth and success in the hospitality industry. 🌟🏨

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Top 8 Crucial Hospitality Challenges in 2024 and Their Solutions

The hospitality industry is rapidly changing with many challenges that must be addressed. Let’s discuss their impact on the industry, what steps should be taken, what is important to pay attention to, and initiatives that need to be implemented for your business to succeed.

• 1. Technologies in hospitality: keeping up with the latest innovations

From AI-powered chatbots to integrated systems for booking and reservations, businesses in the hospitality industry must stay abreast of the latest technological developments. These advances can help streamline internal processes, reducing manual labor while improving productivity and customer experience.

10 Must-Know Technology Innovations in the Hospitality Industry

As technology becomes ubiquitous, embracing its potential is key to staying competitive in the hospitality industry. Consider launching your own website development with payment gateway integration. This will make your hospitality business one step closer in a technological sense and an order of magnitude higher among competitors and in customers’ eyes.

• 2. Health and safety concerns for hospitality workers

The hospitality industry is particularly vulnerable due to the close contact with guests and the array of workplace processes. Here is a list of some health and safety measures that are recommended for implementation:

• Personal protective equipment (PPE) such as gloves and masks;
• Cleaning and sanitizing high-touch surfaces such as door handles and tables;
• Proper ventilation in work areas to reduce heat stress and improve air quality;
• Non-toxic cleaning products and chemicals;
• Safety training for employees who use potentially hazardous equipment or chemicals;
• Developed emergency plans for fire or other accidents;
• Conducting regular risk assessments of the workplace;
• Proper lighting to prevent slips or falls;
• Encouraging hand hygiene and providing sanitizers for employees.

Considering the above, hospitality businesses can create a safe workplace environment for their employees while protecting their customers or guests from potential harm. 

• 3. Hospitality industry and its impact on social media

Despite the advantages, social media poses various challenges for business owners. The 24/7 nature of their operations means companies must constantly be on their guard for negative reviews and customer feedback. This can have an immediate and potentially damaging effect on a business’s reputation.

Social media challenges and solutions for hospitality businesses

All hospitality businesses should explore social media to maximize their reach in today’s market. A strong presence on social media platforms is critical for engaging customers and keeping their interest—so ensure you’re prepared!

• 4. The growing importance of sustainability

The hospitality industry is a significant contributor to environmental pollution. However, increasing public awareness has pressured it to become more sustainable. The survey of Luggage Hero clearly shows that 87% of travelers want to travel more sustainably.

Number of sustainable travelers

So, there is still room for growth in developing the eco-friendly and sustainable hospitality industry. Here are a few key strategies to follow:

• Investing in renewable energy sources such as solar and wind power;
• Utilizing green building materials such as bamboo and recycled materials for construction and furnishing;
• Offering guests to buy sustainable products such as organic foods, eco-friendly toiletries or reusable water bottles;
• Implementing green cleaning practices that minimize the use of harsh chemicals and maximize efficiency in water usage;
• Offering guests the option to go paperless when booking services or checking out from the hotel or restaurant.

By taking steps towards sustainability, hospitality businesses will not only be able to reduce their carbon footprint but also save money in the long run by utilizing more efficient technologies.

• 5. Labor shortages in the hospitality industry

Finding and keeping qualified staff is crucial in the hospitality sector. To help combat labor shortages, businesses must ensure their workplace is attractive to potential employees:

• Offering competitive wages and benefits packages  such as health insurance, retirement savings plans, paid time off, and other perks like employee discounts, can attract top talent and distinguish a business from competitors.
• Create a flexible work environment.  Part-time or remote work arrangements can help attract a wider pool of candidates and improve employee satisfaction.
• Foster a positive work culture.  Make your employees feel valued and motivated to stay with you. This may include opportunities for professional development, regular feedback and recognition, and team-building activities.
• Develop training and career development programs : Invest in building employees’ skills and advancing within the company. It can increase job satisfaction and reduce turnover.
• Streamline hiring processes : Simplifying and expediting it can help businesses attract and secure top talent before accepting competitors’ offers.
• 6. Rising competition in the hospitality

Greater emphasis on experiences and customer service means businesses must work harder to differentiate themselves from competitors. So it is essential to be aware of both direct and indirect competition.

Examples of direct and indirect competition for hospitality businesses

Hospitality companies must create unique experiences to help set a business apart. If you are stuck with this issue, you can use our consultation services from experts with 10+ years of experience and find a solution instantly.

• 7. Preparing for the digital transformation of the hospitality

The industry must stay abreast of the trends and invest in digital solutions. This can range from leveraging AI for customer service and personalized offerings to investing in mobile applications and other digital infrastructure. Consider these points:

• Analyze your customers’ digital behavior.  Understanding what your customers want today and what they may need in the future. Look closely at their behavior when engaging with your brand online and use this data to craft a better experience.
• Invest in robust technology.  Investing in it is necessary for initial setup, maintenance, and upkeep. Research all options before choosing a technology that best suits your budget and needs.
• Adapt strategically.  As technology changes, so should your strategy for using it effectively. Regularly assess how well you leverage these tools to ensure you are seen as modern and relevant in an ever-changing landscape.

By taking these steps, you can confidently prepare for the digital transformation of the hospitality industry — setting yourself up for success now and in the future.

• 8. Embracing maintenance 5.0 into the hospitality industry

As the hospitality industry’s demands evolve, many industry leaders are turning to Maintenance 5.0, a web-based maintenance management system that acts as an integrated platform to streamline processes and help businesses increase efficiency.

Maintenance 5.0 applications in the hospitality industry

With Maintenance 5.0, it is easier to address the challenges. You can quickly identify potential problems, prioritize repairs, and establish preventive maintenance programs that turn challenges into opportunities.

To thrive in the competitive hospitality industry, businesses must stay up-to-date on industry trends and challenges. By staying agile and adaptable to evolving customer expectations and technological advancements, professionals can ensure a prosperous future for the industry.

• Frequently Asked Questions Related to the Hospitality Industry Challenges

1. What are three issues in the hospitality industry?

There are many issues that the hospitality industry faces, but here are three common ones:

• Labor Shortages : The industry faces a staff shortage, leading to lower-quality service and higher staff turnover rates.
• Online Reviews : Customers have the power to influence a business’s reputation through online reviews, making managing feedback crucial for businesses.
• Sustainability : Heavy use of resources in the hospitality industry contributes to environmental degradation, and businesses that do not address sustainability concerns risk losing customers and damaging their reputation.

2. What is the biggest issues and challenges faced by the tourism and hospitality industry?

The biggest challenge facing the tourism and hospitality industry is the COVID-19 pandemic. Other ongoing challenges include sustainability, digitalization, changing consumer preferences, labor shortage, and some regions’ political instability/security concerns.

3. What are the 7 critical risks facing the hospitality industry?

While there may be various critical risks facing the hospitality industry, here are seven common ones:

• Economic Fluctuations : The industry is vulnerable to economic downturns, leading to reduced travel and revenues.
• Natural Disasters : Disruptions and property damage can occur due to natural disasters.
• Cybersecurity : Businesses are vulnerable to cyber attacks that can lead to data breaches and financial losses.
• Regulatory Compliance: Compliance with regulations is necessary in areas such as health and safety, labor laws, and the environment.
• Reputation Management : Negative publicity or reviews can damage a business’s reputation and decrease bookings.
• Geopolitical Risks : Political instability, terrorism, and security concerns in some regions can lead to decreased bookings and revenues.
• Health and Safety : Businesses must implement strict health and safety protocols, including for COVID-19, food safety, and the spread of infectious diseases.

4. What are the challenges faced by tourism industry?

The tourism industry faces a range of challenges, including:

• COVID-19 Pandemic;
• Sustainability;
• Digitalization;
• Changing Consumer Preferences;
• Safety and Security;
• Political Instability;
• Economic Fluctuations;
• Infrastructure;
• Talent Shortage.

5. What is the biggest challenge in hospitality?

The biggest challenge in hospitality at present is the COVID-19 pandemic, which has caused a significant decline in travel and tourism, leading to revenue losses for businesses, as well as operational challenges due to new safety and health protocols.

6. What are the international issues in hospitality?

Some of the international issues in hospitality include:

• Travel restrictions and visa policies;
• Political instability and conflicts;
• Cultural differences;
• Global economic trends;
• Sustainable tourism;
• Labor laws and employment practices;
• Global health issues like the COVID-19 pandemic.

7. What are the weaknesses in hospitality industry?

The weaknesses in the hospitality industry include dependence on external factors, high competition, seasonal demand, high labor costs, high initial investment, technological challenges, and sustainability issues. It perfectly demonstrates the need for businesses to continually adapt and evolve to changing market conditions. By focusing on customer needs, implementing sustainable practices, and investing in technology, hospitality businesses can better position themselves for long-term success.

8. What is problem solving in hospitality industry?

Problem-solving in the hospitality industry involves identifying and addressing challenges and issues while providing services to guests. Some common problems that may arise in the hospitality industry include guest complaints, staffing issues, equipment failures, supply chain disruptions, and financial challenges.

9. What are the big five in hospitality?

The “Big Five” in hospitality refers to the five major segments of the hospitality industry, which are:

• Food and Beverage;
• Travel and Tourism;
• Entertainment;
• Recreation.

These five segments are interdependent and work together to provide an overall experience for customers. Each segment presents unique challenges and opportunities for businesses, and success in the hospitality industry often involves effectively managing all five segments.

10. What are the negative impacts of hospitality?

The hospitality industry can negatively impact the environment, society, and economy. Here are some of them:

• Environmental impact . Environmental degradation, such as waste generation, water and energy consumption, and greenhouse gas emissions;
• Cultural impact . The rapid growth of tourism and hospitality can lead to cultural commodification, loss of authenticity, and cultural clashes.
• Social impact . Social issues such as overcrowding, labor exploitation, and gentrification.
• Economic impact . The hospitality industry may create economic imbalances by driving up prices and creating wealth disparities between local communities and tourists.
• Health impact . Hospitality can pose health risks, such as the spread of diseases, food poisoning, and accidents.

It is important for the hospitality industry to recognize and address these negative impacts by implementing sustainable practices, respecting local cultures and communities, providing fair labor conditions, and prioritizing the health and safety of guests and employees.

11. What are the pros and cons of hospitality?

Here are main pros and cons of the hospitality industry:

The hospitality industry has many benefits. However, some challenges may arise. They can be effectively addressed by management and strategic planning.

Updated on: 2024-08-27 . Author: Karina

Tags: Hospitality management

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Top 10 Challenges Faced By The Hotel Industry In 2024

Behind the glitz and glamour of luxurious accommodations and impeccable service, lies a challenging landscape that hoteliers must navigate to succeed. From the rise of online travel agencies to shifting customer expectations, the hotel industry faces a myriad of hurdles that demand innovative solutions. In this article, we unveil the top 10 challenges faced by the hotel industry, shedding light on the obstacles that shape this dynamic sector and exploring the strategies employed by industry leaders to overcome them. So fasten your seatbelts and get ready to explore the fascinating challenges that lie at the heart of the hospitality world!

Why Do You Need to Know About the Challenges in the Hotel Industry?

Understanding the challenges faced by the hotel industry is crucial for various reasons. Firstly, if you are a hotelier or aspiring to enter the hospitality sector, being aware of these challenges can help you anticipate and prepare for potential obstacles that may arise in your business journey. It allows you to develop proactive strategies to address these challenges and stay ahead of the competition.

As a consumer or traveller, knowing about the challenges faced by the hotel industry gives you valuable insights into the factors that can affect your overall experience. By understanding the challenges, you can set realistic expectations, make informed decisions when choosing accommodations, and appreciate the efforts and innovations undertaken by hotels to overcome these obstacles.

Furthermore, the challenges faced by the hotel industry often reflect broader trends and developments in the business and technology landscapes. Studying these challenges can provide valuable insights into larger industry shifts, consumer behaviour patterns, and emerging technologies that are reshaping the way hotels operate.

Ultimately, whether you are directly involved in the hotel industry or simply an interested observer, knowing about the challenges faced by hotels helps you gain a deeper understanding of the complex dynamics at play in this vibrant and ever-changing sector.

What Are The Most Important Hotel Challenges?

1. changing consumer expectations.

The hotel industry is no longer just about providing a place to sleep; it’s about delivering memorable experiences. Today’s consumers crave personalization and seek unique stays tailored to their preferences. Hoteliers must go beyond the basics and offer customized amenities and services. This includes everything from personalized welcome gifts and room configurations to curated recommendations based on guests’ interests. Embracing technology and leveraging guest data can help hotels meet these expectations while maintaining the human touch that sets them apart.

1.1 Customized Amenities and Services

• Personalized welcome gifts and gestures
• Tailored room configurations (e.g., bedding preferences, room temperature)
• Curated recommendations for local attractions, dining, and activities based on guest interests and preferences

1.2 Leveraging Technology for Personalization

• Utilizing guest data to anticipate needs and preferences
• Implementing guest profiles to store preferences for future stays
• Leveraging mobile apps and smart room features for personalized experiences

2. Intense Competition

Competition in the hotel industry has reached new heights. With the rise of alternative lodging platforms like Airbnb and the increasing number of hotels and accommodation options, hoteliers must differentiate themselves to stand out. The key lies in offering something truly unique. Innovative amenities such as rooftop gardens, spa retreats, or art galleries can attract guests seeking an exceptional experience. Additionally, providing outstanding customer service through well-trained staff who anticipate and fulfill guests’ needs can make all the difference in winning over the hearts and minds of travellers.

2.1 Innovative Amenities and Experiences

• Rooftop gardens with panoramic views
• Spa retreats offering unique wellness experiences
• Art galleries showcasing local artists’ works

2.2 Exceptional Customer Service

• Comprehensive training programs for staff to deliver personalized and attentive service
• Empowering staff to anticipate and fulfill guests’ needs
• Implementing feedback systems to continuously improve service quality

3. Workforce Management

Managing a skilled and dedicated workforce is a challenge that hoteliers face continuously. High turnover rates plague the industry, making recruitment and retention an ongoing battle. To address this, hotels must focus on attracting and retaining talented employees by offering competitive compensation, career growth opportunities, and positive work culture. Comprehensive training and development programs can enhance employees’ skills, resulting in better service delivery. Embracing diversity and inclusion in the workforce ensures a broad range of perspectives, which can foster creativity and enrich the guest experience.

3.1 Attracting and Retaining Talent

• Offering competitive compensation and benefits packages
• Providing clear career growth opportunities
• Fostering a positive work culture and work-life balance

3.2 Comprehensive Training and Development

• Regular training programs to enhance employees’ skills and knowledge
• Cross-training opportunities to build a versatile workforce
• Leadership development programs to nurture future leaders

3.3 Embracing Diversity and Inclusion

• Actively promoting diversity in hiring practices
• Creating an inclusive work environment that values different perspectives
• Providing equal opportunities for career advancement to all employees

4. Technological Advancements

Technology has revolutionized the hotel industry, and staying up-to-date is essential. Online booking systems and mobile apps streamline the reservation process, making it convenient for guests to book their stays. Smart room features and Internet of Things (IoT) devices enhance guest comfort and enable personalized experiences. However, with these advancements come concerns about data security and privacy. Hotels must prioritize safeguarding guest information through robust cybersecurity measures and transparent data handling practices. Striking the right balance between automation and human interaction is crucial to create a seamless guest experience.

4.1 Streamlined Reservation Process

• User-friendly online booking systems and mobile apps
• Seamless integration with property management systems
• Real-time availability updates and instant confirmation

4.2 Smart Room Features and Personalization

• IoT devices for controlling room temperature, lighting, and entertainment systems
• Voice-activated assistants for guest requests and information
• Personalized welcome messages and guest preferences stored in the system

4.3 Data Security and Privacy

• Implementing secure data handling practices
• Regular data security audits and vulnerability assessments
• Compliance with data protection regulations (e.g., GDPR)

4.4 Balancing Automation and Human Interaction

• Offering a blend of automated services and personalized guest interactions
• Training staff to utilize technology as a tool to enhance guest experiences
• Ensuring a seamless transition between automated processes and human assistance

Also, you need to have a technological advance hotel management system solution for your business. This brings more easiness in streamlining operations, optimising revenue, and enhancing guest experiences.

5. Sustainability and Environmental Impact

As the world becomes increasingly aware of environmental issues, sustainability has emerged as a significant concern for travelers. Hoteliers must implement sustainable practices to minimize their environmental footprint. This includes adopting energy-efficient infrastructure, implementing waste management and recycling initiatives, and promoting eco-friendly options such as towel and linen reuse programs. Hotels can also educate guests about responsible tourism and engage them in sustainable practices during their stay. By aligning with the values of environmentally conscious travellers, hotels can attract a growing market segment and contribute to a greener future.

5.1 Energy Efficiency and Green Infrastructure

• Installing energy-efficient lighting and HVAC systems
• Utilizing renewable energy sources (e.g., solar panels)
• Implementing smart energy management systems to optimize energy usage

5.2 Waste Management and Recycling

• Setting up recycling stations throughout the property
• Composting food waste and utilizing organic waste for landscaping
• Reducing single-use plastics and promoting alternatives

5.3 Towel and Linen Reuse Programs

• Encouraging guests to participate in towel and linen reuse initiatives
• Providing incentives or rewards for guests who opt for reuse
• Educating guests about the positive environmental impact of their choices

5.4 Responsible Tourism Education

• Sharing information about local environmental initiatives and attractions
• Offering eco-friendly tours and activities for guests
• Partnering with local organizations focused on environmental conservation

6. Revenue Management and Pricing

Maximizing revenue while maintaining competitive pricing is an ongoing challenge for hoteliers. Understanding market trends and demand patterns is crucial for effective revenue management. By analyzing data and leveraging revenue optimization tools, hotels can optimize pricing strategies to capture the highest possible revenue from each room. Dynamic pricing, which adjusts rates based on factors such as demand and seasonality, can help hotels strike the right balance between profitability and occupancy. A well-crafted pricing strategy combined with exceptional service can help hotels thrive in a highly competitive market.

6.1 Market Analysis and Demand Forecasting

• Analyzing market trends, competitor rates, and demand patterns
• Utilizing data analytics tools for revenue forecasting
• Monitoring events and local attractions that may impact demand

6.2 Dynamic Pricing Strategies

• Implementing dynamic pricing algorithms based on demand fluctuations
• Adjusting rates based on factors such as seasonality, occupancy, and booking lead time
• Offering targeted promotions and discounts during low-demand periods

6.3 Revenue Optimization Tools

• Utilizing revenue management software to automate pricing decisions
• Integrating with distribution channels and online travel agencies for rate optimization
• Conducting regular performance evaluations and making adjustments accordingly

6.4 Exceptional Service as a Value Differentiator

• Providing personalized experiences and exceptional customer service
• Offering value-added amenities and services that justify premium pricing
• Engaging with guests to understand their preferences and exceed expectations

7. Regulatory Compliance

Complying with local, national, and international regulations is a top priority for hotels. Ensuring the safety and security of guests and staff is paramount. Hotels must adhere to fire safety regulations, implement effective security measures, and maintain proper documentation for licensing and taxation. Compliance with labor laws and employment regulations is also crucial, including fair wages, working hours, and providing a safe and inclusive workplace. Staying updated on regulatory changes and proactively addressing compliance issues is essential to avoid legal and reputational risks.

7.1 Fire Safety and Security Compliance

• Conducting regular fire safety inspections and drills
• Implementing effective security measures (e.g., surveillance cameras, access control)
• Maintaining updated documentation for licenses and permits

7.2 Labor Laws and Employment Regulations

• Ensuring compliance with fair labour practices and employment laws
• Providing a safe and inclusive work environment
• Upholding equal employment opportunities and fair wages

7.3 Regulatory Monitoring and Updates

• Staying informed about changes in local, national, and international regulations
• Engaging legal counsel or consultants to navigate complex compliance requirements
• Conducting internal audits to identify and address compliance gaps

8. Infrastructure and Maintenance

Hotels are complex infrastructures that require regular maintenance to meet guest expectations. Ensuring the facilities are up to standard and addressing maintenance issues promptly is critical. Aging infrastructure can present challenges, but hotels must invest in upgrades and renovations to provide a fresh and inviting environment for guests. Implementing a proactive maintenance program, closely monitoring guest feedback, and promptly resolving any issues that arise are key to maintaining a positive guest experience. Complying with health and safety regulations further ensures the well-being of guests and staff.

8.1 Proactive Maintenance Program

• Conducting regular inspections of facilities and equipment
• Implementing preventive maintenance schedules and checklists
• Training staff to identify and report maintenance issues promptly

8.2 Upgrades and Renovations

• Investing in regular upgrades to keep the property fresh and modern
• Conducting guest surveys to identify areas for improvement
• Planning and executing renovations during low-demand periods

8.3 Prompt Issue Resolution

• Establishing a responsive system for addressing guest complaints and requests
• Empowering staff to resolve issues on the spot whenever possible
• Implementing effective communication channels to ensure swift problem-solving

8.4 Health and Safety Compliance

• Complying with local health and safety regulations and guidelines
• Conducting regular health and safety training for staff
• Implementing proper hygiene protocols and sanitation practices

9. Marketing and Branding

Creating a strong brand identity is vital for hotels to attract and retain guests. Effective marketing strategies are necessary to reach the target audience and differentiate the property from competitors. Hotels must craft compelling narratives that showcase their unique offerings and value propositions. Leveraging digital marketing channels, such as social media and online travel agencies, can amplify reach and engage potential guests. Additionally, managing online reputation and monitoring guest reviews is crucial in shaping public perception and fostering trust. An authentic and consistent brand experience across all touchpoints builds loyalty and generates positive word-of-mouth.

9.1 Unique Value Proposition and Brand Storytelling

• Identifying the hotel’s unique offerings and positioning in the market
• Crafting compelling narratives that resonate with the target audience
• Showcasing the hotel’s history, location, and cultural connections

9.2 Digital Marketing and Online Presence

• Utilizing social media platforms to engage with guests and share updates
• Optimizing the hotel’s website for search engine visibility
• Collaborating with influencers and travel bloggers to reach new audiences

9.3 Online Reputation Management

• Monitoring and responding to guest reviews and feedback
• Encouraging satisfied guests to leave positive reviews
• Addressing negative feedback promptly and professionally

9.4 Consistent Brand Experience

• Training staff to embody the hotel’s brand values and deliver a consistent experience
• Ensuring brand consistency across all communication channels and touchpoints
• Engaging guests through personalized and targeted marketing campaigns

10. Crisis Management

In an unpredictable world, hotels must be prepared to handle various crises effectively. Natural disasters, pandemics, and security threats can disrupt operations and impact guest safety. Developing comprehensive crisis management plans that outline clear protocols for staff and guest communication, evacuation procedures, and business continuity is crucial. Regular training and simulations ensure preparedness and swift response during critical situations. Transparent and timely communication with guests, staff, and stakeholders is essential for maintaining trust and minimizing the impact of a crisis.

10.1 Crisis Management Planning

• Developing comprehensive crisis management plans tailored to different scenarios
• Identifying crisis response teams and assigning roles and responsibilities
• Conducting regular drills and simulations to test preparedness

10.2 Clear Communication Protocols

• Establishing effective communication channels for staff and guest notifications
• Training staff on crisis communication protocols and customer service during emergencies
• Implementing guest communication systems to provide updates and instructions

10.3 Business Continuity Strategies

• Identifying alternative operational arrangements in case of disruptions
• Collaborating with local authorities and emergency services for support
• Regularly reviewing and updating business continuity plans based on lessons learned

Conclusion – Challenges Of the Hotel Industry

Navigating the challenges faced by the hotel industry requires resilience, adaptability, and a guest-centric mindset. By understanding and addressing the changing consumer expectations, intense competition, workforce management, technological advancements, sustainability concerns, revenue management, regulatory compliance, infrastructure maintenance, marketing and branding, and crisis management, hotels can thrive in a rapidly evolving landscape. Embracing innovation, investing in employee development, and providing exceptional service is key to success. As the hotel industry continues to transform, those who stay ahead of the curve and overcome these challenges will emerge as leaders in providing memorable guest experiences.

Remember, the hotel industry is a dynamic field, and these challenges will continue to evolve. Embrace change, foster innovation, and remain committed to exceeding guest expectations. By doing so, you’ll position yourself and your hotel for long-term success in the ever-competitive hospitality market.

FAQs –

The hospitality industry is challenging due to various factors such as intense competition, changing customer expectations, labor shortages, rising operational costs, and the need to constantly adapt to new technologies and trends.

The hospitality industry has several weaknesses that can impact its performance. These weaknesses include high operational costs, labor-intensive operations, seasonal demand fluctuations, fierce competition, vulnerability to economic downturns, and challenges in maintaining consistent service quality across diverse locations.

Three factors that can significantly impact the hospitality industry are economic conditions, technological advancements, and changing consumer preferences.

The biggest threat in the hotel business can vary depending on various factors, but one of the prominent threats is intense competition. With a growing number of hotels and alternative accommodation options, competition for guests’ attention and bookings is fierce. This requires hotels to continuously innovate, provide exceptional experiences, and differentiate themselves to stay ahead in the market. Other threats can include economic downturns, shifts in consumer preferences, and disruptive technologies that reshape the industry landscape.

Hotel SWOT analysis is a strategic planning tool that assesses the strengths, weaknesses, opportunities, and threats of a hotel business. It involves evaluating internal factors (strengths and weaknesses) such as location, amenities, service quality, and external factors (opportunities and threats) such as market trends, competition, economic conditions, and regulatory changes. The analysis helps identify areas of competitive advantage, potential areas for improvement, and external factors that may pose risks or present opportunities for the hotel.

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Challenges faced by Hoteliers in 2023 and How to Solve Them

Jul 02, 2023   •   7 min. read

Running a successful hotel comes with its fair share of challenges. In this blog, we will dive into some of the most common challenges that hoteliers face and explore the best solutions to overcome them. From the impact of the COVID-19 pandemic to addressing sustainability concerns and embracing digital transformation, and more.

Here are the top challenges faced by hoteliers and how to solve them:

COVID Recovery

The COVID-19 pandemic has presented hoteliers with many challenges impacting the hospitality industry on multiple fronts. They have had to navigate and invest in extensive sanitation measures, personal protective equipment, and staff training to ensure the well-being of guests and employees.

Additionally, fluctuating demand and travel restrictions have posed significant obstacles, resulting in reduced occupancy rates and revenue streams. To overcome these challenges, hoteliers have had to adapt their business strategies and diversify their offerings to attract local guests who have become the primary source of business amidst the uncertainties brought about by the pandemic.

To address these challenges, hoteliers can adopt several strategies. Firstly, continuing to prioritize and enhance health and safety measures is crucial to instilling confidence in guests. Regular sanitation, implementing touchless technologies, and maintaining social distancing protocols can go a long way in reassuring visitors.

Also staying informed and flexible is essential to adapt to changing travel restrictions and market conditions. Monitoring local and global trends, engaging with industry associations, and collaborating with local authorities can help hoteliers make informed decisions and adjust their strategies accordingly. By combining adaptability, innovation, and a guest-centric approach, hoteliers can navigate the challenges posed by COVID-19 and emerge stronger in a post-pandemic world.

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Sustainability.

Sustainability presents a significant challenge for hoteliers as they strive to balance environmental stewardship with operational efficiency and guest expectations. Reducing the environmental impact of hotel operations requires high cost investments which can be a barrier for some hoteliers, especially smaller establishments.

Moreover, educating guests about sustainable practices and encouraging their participation can be challenging, as it requires a change in mindset and behavior. Overall, achieving sustainability goals requires a comprehensive approach and the commitment of hoteliers to overcome these challenges.

To address the sustainability challenge, hoteliers can adapt a holistic approach that encompasses energy and water conservation, sustainable procurement, guest education, and collaboration within the industry. Things like conducting energy audits and implementing energy-saving technologies, such as LED lighting and smart thermostats, can significantly reduce energy consumption and operational costs.

Similarly, implementing water-saving measures, such as low-flow fixtures and rainwater harvesting systems, can contribute to both water conservation and cost reduction. Additionally, educating guests about sustainable initiatives can be achieved by providing information on sustainable practices and local attractions, and offering incentives for guests to opt for eco-friendly options. By adopting these strategies, hoteliers can make significant progress in achieving their sustainability goals while meeting guest expectations and contributing to a more environmentally conscious and responsible hospitality sector.

Digital transformation

Digital transformation poses a challenge for hoteliers as they navigate the rapidly evolving technological landscape. Embracing digital technologies requires new infrastructure, software systems, and staff training. This can be particularly challenging for smaller hotels with limited resources.

Additionally, integrating various digital platforms and systems, such as property management systems, online booking engines, and customer relationship management tools, can be complex and time-consuming. Overcoming these challenges requires a strategic approach and a willingness to adapt to the evolving digital landscape.

To address the challenge of digital transformation hoteliers must first conduct an assessment of existing technologies and identifying areas for improvement is essential. This includes evaluating current systems, identifying pain points, and determining the specific digital tools and platforms that will best meet the hotel’s unique needs.

Implementing the right technology can streamline operations, automate processes, boost revenue and improve overall hotel efficiency. Guest experience platforms can be seamless to adapt for hoteliers and simplify processes that create the best guest experience. From online check-in, to upsells, to hotel information, communication and way more. The right technology upgrade can be the difference between a good hotel and a great one.

Labor shortage

Labor shortage has emerged as a significant challenge for hoteliers, impacting their ability to maintain optimal staffing levels and deliver exceptional guest service. The hospitality industry heavily relies on a skilled and dedicated workforce, but the COVID-19 pandemic has disrupted the labor market, leading to reduced availability of qualified personnel.

Hotels are facing difficulties in recruiting and retaining talented individuals across various roles, including housekeeping, food and beverage, and front desk. Moreover, the increased competition for labor and rising wage expectations have put additional pressure on hoteliers, especially those operating on tight budgets. The labor shortage has resulted in increased workloads for existing staff, potential service gaps, and ultimately, a negative impact on the guest experience.

To address the labor shortage challenge, hoteliers can invest in employee retention, create a positive work environment, provide competitive compensation and benefits, and offer opportunities for career growth and development which can enhance employee satisfaction and loyalty. This can include implementing recognition programs, fostering a supportive culture, and offering flexible scheduling options.

Hoteliers can explore partnerships with local educational institutions and vocational training centers to develop talent pipelines. By establishing relationships with these organizations, hotels can provide internships, apprenticeships, and training programs to attract and nurture aspiring hospitality professionals. Lastly, hoteliers can implement technology to alleviate labor pressures. Implementing automation and self-service technologies, such as automated check-in kiosks, mobile concierge services, and AI for repetitive tasks, can optimize operational efficiency and reduce the reliance on human resources. This allows staff to focus on delivering personalized and high-value services that require human interaction.

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Market competition.

Marketing competition presents a challenge for hoteliers, as they strive to differentiate their properties in a crowded and highly competitive marketplace. With numerous hotels vying for the attention of potential guests, standing out and capturing their interest becomes increasingly difficult.

The proliferation of online booking platforms, travel agencies, and alternative accommodations further intensifies the competition. Hoteliers face the challenge of effectively positioning their property, showcasing unique features and offerings, and conveying value to potential guests. Overcoming this challenge requires a strategic and comprehensive approach to marketing.

Hoteliers can employ strategies like conducting thorough market research and competitor analysis, understanding the target audience, identifying gaps in the market, and studying successful strategies employed by competitors to understand effective marketing tactics. Hoteliers can also focus on the unique selling points of their property, to develop compelling messaging and differentiation that resonate with potential guests.

Hoteliers should also establish a strong online presence. Optimizing website content for search engines, and leveraging social media platforms can help increase visibility and engage with a wider audience. Implementing effective search engine marketing (SEM) and search engine optimization (SEO) strategies can improve the hotel’s ranking in online searches and drive organic traffic to their website.

Also implementing customer relationship management (CRM) systems and leveraging guest data can enable personalized communication, tailored offers, and loyalty programs. A comprehensive and innovative marketing approach will enable hoteliers to attract and retain guests, ultimately driving occupancy rates and revenue growth.

Customer expectations

Customer expectations present a significant challenge for hoteliers as they strive to meet the ever-evolving demands and desires of discerning guests. With increased access to information, online reviews, and social media, customers have higher expectations when it comes to the quality of service, personalized experiences, and value for their money.

Hoteliers must navigate the challenge of consistently delivering exceptional customer experiences that exceed expectations while balancing operational efficiency and profitability. Meeting individual guest preferences, providing seamless and personalized services, and anticipating needs can be complex, especially in a fast-paced and dynamic industry. Hoteliers need to understand and adapt to the changing expectations of guests to maintain their competitive edge and foster guest satisfaction and loyalty .

Ensuring that frontline employees have the knowledge, skills, and autonomy to deliver personalized and attentive service can significantly enhance the guest experience. Training programs that focus on empathy, communication, and problem-solving can enable staff to handle various guest interactions effectively. Also leveraging technology can help hoteliers streamline operations and enhance guest experiences.

Implementing guest management systems, mobile apps, and self-service options can offer convenience, personalization, and seamless interactions throughout the guest journey. Utilizing data and analytics can also provide insights into guest preferences and behavior, enabling hoteliers to tailor services and offers to meet individual needs. Actively seeking guest feedback and regularly monitoring online reviews and social media mentions allows hoteliers to address any concerns promptly and take proactive measures to improve the guest experience.

Revenue Management

Hoteliers face the challenge of balancing demand fluctuations, market trends, and price sensitivity while maintaining profitability. Factors such as seasonality, events, competition, and changing guest behaviors influence revenue management decisions. Determining the right pricing strategy, setting rates that reflect demand and value, and effectively managing inventory require expertise, data analysis, and a deep understanding of market dynamics.. Overcoming these challenges is essential to achieving revenue goals and maintaining a sustainable business.

Leveraging data analytics and technology is important when it comes to revenue management . Implementing revenue management systems and utilizing data-driven insights can enable hoteliers to make informed pricing decisions. By analyzing historical data, market trends, and competitor performance, hoteliers can identify demand patterns and adjust rates accordingly. This allows them to optimize pricing strategies, identify revenue opportunities, and effectively manage inventory to maximize revenue potential. Hoteliers should also adopt a dynamic pricing approach that can help respond to changing market conditions and demand fluctuations in real-time. By understanding data analytics, adopting dynamic pricing strategies, effectively managing distribution channels, and implementing strategic marketing initiatives, hotels can optimize revenue and achieve their financial goals.

In conclusion, hoteliers face a multitude of challenges in today’s dynamic hospitality industry. From recovering from the impact of the COVID-19 pandemic to addressing sustainability concerns, embracing digital transformation, managing labor shortages, facing intense marketing competition, meeting customer expectations, and optimizing revenue management, each challenge requires strategic solutions and adaptability. By adopting a guest-centric approach, leveraging technology and data analytics, collaborating with industry partners, prioritizing employee satisfaction, and continuously monitoring market trends, hoteliers can overcome these challenges. Embracing innovation, staying ahead of the curve, and delivering exceptional guest experiences will not only help hotels thrive in a competitive landscape but also pave the way for long-term success and sustainable growth in the evolving hospitality industry.

About the author

Hi, I'm Tal Lavi, a hospitality enthusiast dedicated to transforming your guest experience to an unforgettable one. With a passion for crafting engaging narratives and deep insights into guest behavior, let me take you on a journey to the future of guest experience.

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4 of the Biggest Challenges in Hospitality Right Now —And How to Tackle Them

The hospitality industry has long been known for its fast-paced, ever-evolving nature. Operators and managers are constantly having to stay flexible in order to meet the latest changes and demands, particularly in the aftermath of the pandemic, which wreaked havoc on many restaurants and hotels across the globe. 

While the industry has seen some recovery in the past few years, ongoing issues such as staffing shortages and other operational challenges persist. Addressing these issues will be critical for restaurants and hotels that want to deliver a high-quality experience for their customers—something that’s become even more crucial in today’s competitive landscape. Let’s explore some of the biggest hospitality challenges and how to address them in order to thrive in the years to come.

1. Ongoing Staffing Shortages

Ask any hotel or restaurant operator what their biggest hospitality challenge is, and their answer is likely to include something about labor: either recruiting or retaining enough experienced talent to meet demand. Though the rate of job openings for hotels and restaurants decreased from 9.6% in 2022 to 6.4% in 2023, it remains higher than almost any other industry—making it a constant headache for most hospitality businesses.

Being short-staffed can lead to service interruptions and have a negative impact on the customer experience. Recruiting and retaining enough talent to meet demand is crucial to solving virtually any other operational challenge you face. 

Solutions: 

• Offer schedule flexibility. Flexibility has become crucial to offer all of your employees—particularly younger team members. According to one survey , 33% of Gen Zers said they would never work for an employer who didn’t offer any flexibility or say in their work schedule. Opt for a scheduling software that makes it simple for staff to set their own hours or swap shifts on their own when needed.
• Start a referral program. If you haven’t already, start a referral program that rewards employees with bonuses or other incentives if they send quality applicants your way.
• Get creative with perks. Offering perks like flexible time off, same-day cashless tip payouts , and other incentives to improve your workers’ well-being can all go a long way in boosting workplace satisfaction and retention. 

2. Shifting Consumer Expectations 

Today’s travelers and restaurant patrons are increasingly looking for personalized experiences and customized offerings. Guests expect you to cater to more individual requests while simultaneously ensuring transactions are swift and seamless. If a lengthy process can be automated for your guest, all the better; consider the fact that consumer interest has risen sharply in self-serve kiosks for everything from quick-serve restaurants to hotel check-ins.

Restaurants and hotels must stay on top of consumer preferences and the latest innovations, using data and the latest technology to anticipate these ever-evolving demands. Failure to do so may result in loss of business or negative reviews, as consumers become even more vocal about unpleasant experiences online. 

• Ask for feedback. The easiest way to understand what your customers want? Ask , and then truly listen to what they say. A simple email survey might be overlooked, so get creative. Use fun quizzes, online polls, or other unique methods to collect data. Managers may also solicit more frequent verbal feedback from guests, asking them in-person what they liked or didn’t like about their experience.  Then, get to work testing these ideas.
• Prioritize personal touches.  Instead of just an online booking form that asks if there are any special requests when making a reservation, get specific in order to make sure that each guest feels valued. Ask restaurant guests about allergies, seating preferences, or even lighting preferences ahead of time. For hotels, this may look like asking for a guest’s preferred temperature setting or any other customizations that can make their stay more comfortable–think: special linens or scented candles. 
• Think mobile-first .  Adopting a mobile-first mindset is crucial, especially as more consumers use their phones as their first touchpoint with your business. (Did you know that 89% of dining research is conducted via mobile phone?) Make sure your website is optimized for a mobile-first experience and makes finding information like menus, reservations, and pricing information quick and easy.

3. Sky-High Operating Costs

Compared to other industries, profit margins are notoriously tight in hospitality, particularly the restaurant business. And with how much prices have risen in the past few years for everything from food to cleaning supplies, businesses have had to contend with higher inventory costs at every turn. 

Minimum wage requirements have also risen, signaling the need for restaurants and hotels to pay their staff competitively if they want to retain enough labor. Paying more for both talent and the everyday items needed to operate a business can take its toll, and many restaurants and hotels have had to limit service hours or close altogether because of these high operating costs. Fortunately, there are ways to be more cost-effective across the board, from reducing turnover to finding new revenue streams.

• Find new revenue streams. Find ways to add new revenue streams to your business. For restaurants, this might look like creating DIY meal kits or branded products. Hotels might consider offering add-on services like a personal concierge or dry cleaning for their guests. 
• Reduce turnover. Turnover isn’t just an inconvenience; it’s expensive . According to a study by Cornell University’s School of Hospitality Management, staff turnover can cost hospitality businesses an average of $5,864 per employee . If you’re looking for a way to save money, focus on your retention strategies. What are you offering employees to make sure they’re productive and engaged? Beyond paying them a competitive wage, are you paying them in a way that’s simple and easy? Fast, flexible pay options can go a long way in delivering a better day-to-day experience for your staff. 
• Streamline + optimize inventory. For restaurants, simplifying your menu to minimize the variety of ingredients required, or only buying in-season produce for example, may help trim high food costs. Hotels can implement these culinary strategies too, as well as find ways to optimize inventory items by monitoring usage patterns. Analyzing usage data can help you ensure you aren’t overstocking or overspending on anything.

4. Inefficient, Outdated Processes

Both restaurants and hotels typically use multiple third-party apps to get everything done; everything from front desk or reservation scheduling software to point of sale providers, and beyond. Unfortunately, having to use all of these ad hoc tools can eat into your budget. Not only is all of this admin costly, but it can be time-consuming too. You might be stuck with outdated manual processes like issuing paper checks or stuffing envelopes with cash tips that take up too much time—time that could be spent with your customers.

• Audit your software. Take stock of the software as a service (SaaS) fees you pay per month and compare it to your ROI. Is each solution delivering enough of an ROI to justify the spend? As you review budgets for the year ahead, make this a priority. 
• Bundle and consolidate when you can . Bundling can be a cost-effective strategy where it makes sense to do so. For example, some POS providers allow you to bundle online ordering + loyalty programs, allowing you to save money on two services at the same time. You may also consider adopting a platform that can streamline multiple needs, such as a workforce payments platform like Branch that can handle cashless tips , offer a pay card alternative , handle one-off-payments, bonuses, and other payment needs. 
• Automate manual processes. Are there any manual processes you currently use that could be automated to save time and money? Think of switching from paper check issuing to automated, digital payments. Or offering those self-serve kiosks consumers love these days. Hours saved each week can also be an ROI, especially if it helps managers and operators get back more hours in the day to interact with guests or directly support staff.

Address Hospitality Challenges with Fast, Flexible Pay

While we can’t wave a magic wand and make all of your hospitality headaches go away, there are a few issues we can help you solve today: your ability to recruit and retain employees, and the simplicity of your payment processes. 

Branch allows you to offer the fast, flexible pay that hospitality talent wants, whether it’s digital direct deposit or same-day cashless tips that are deposited right into their account after every shift. These seamless digital solutions not only save managers time but can keep your hospitality staff happier—leading to fewer labor and operational challenges for you. 

As you set your sights on planning for the year ahead, consider how fast, flexible pay can be a part of your strategy for success. 

‍ Learn more about how Branch works for hospitality here. 

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Adapting to Change: How Can Hotels Stay Ahead of Industry Trends?

Hospitality is one of the most fast-paced, ever-changing industries that is constantly affected by external circumstances such as staffing fluctuations, consumer trends, and, of course, the global economic climate. This means that hotels need to be agile in responding to any changes that may affect them if they want to stay relevant in a highly competitive market.

You might say this is the case for any company or industry – and you would be right. However, there is an added complication when it comes to the hospitality industry. Hotels are so multifaceted that adopting any meaningful change is hard to do “from the top” without considering how the different departments are going to absorb it. This is, of course, partially the responsibility of the Senior leaders for each particular discipline, but if the different departments work in silos (which they often do) or if the hotel doesn’t have enough resources or long-term staff to fill these positions (which they often don’t), responding quickly to stay relevant can be difficult. This is the case, especially when new tools, technologies, and consumer trends disrupt operations across multiple departments.

The obvious answer is a multi-disciplinary approach, which will allow the hotel to address the issues – and opportunities – that arise from any rapid external changes in a way that encourages collaboration. Whether between Human Resources and Sales or Revenue Management and Engineering, opening lines of communication within and across departments offers a high-level overview of how to optimize efficiency and respond as a united front.

Adopting a multi-disciplinary approach is about much more than just departments working together towards a common goal. By connecting multiple departments, creative solutions can be developed based on the multi-disciplinary insight of department leaders to optimize operational processes for greater agility when faced with disruptions in the industry. That’s essentially the purpose of multi-disciplinary problem-solving: Coming up with creative solutions that leverage the strengths of each department for quick and effective decision-making. This is going to be even more important in 2024, and here are a few reasons why:

Staying Consistent Across the Board Gives an Important Message in an Uncertain Economy

A big motivator to focus on creative solutions is the risk of slowing leisure demand due to an anticipated mild recession in the first half of 2024. This means that because people will be spending less money on leisure travel and hotels in an uncertain economy, finding a way to make your hotel stand out from the competition is crucial.

However, it may be tempting to lower your average daily rate to appeal to more travelers, but this can do far more harm than good. According to hospitality investment banking expert Dr. Donald Wise: If your only competitive advantage is dropping your rate, then you have no competitive advantage. You’ve got to be a leader, and you’ve got to keep the rate and sacrifice occupancy because if you drop that ADR you’re going to fight to get it back.

One way to stay ahead of the competition and keep your hotel generating consistent revenue (without compromising your hotel’s reputation) is to lean into a cohesive concept. The idea behind a concept hotel (not a themed hotel) is to provide a distinct guest experience that makes your hotel a go-to destination for a one-of-a-kind stay.

For example, if the feel of your F&B program is aligned with the design of your hotel – from the restaurant and bar to the lobby and each room – guests will experience that same harmony throughout their stay.

And it doesn’t stop there. By connecting all hotel departments (including housekeeping, front office, and marketing), guests can experience this cohesive story before, during, and even after their stay. Rather than needing to conform to trends as they arise, a hotel with a solid concept can create a lasting impression through consistent touchpoints that overdeliver on excellence.

Staffing Challenges are Easier to Solve from a Holistic Perspective

High staff turnover rates in hospitality, coupled with fewer hospitality students entering the field, mean that hotels need to develop creative solutions that proactively address these staffing issues. Research shows that anything related to staffing is easier to solve from multiple angles, especially as staffing challenges in one department often affect multiple other departments.

For example, a sales manager vacancy can impact a hotel’s bottom line, and the responsibility falls on human resources to ensure the position is filled quickly. As a result of this time pressure, managers are often thrown into their positions with little to no training or no clear direction. This can lead to low morale, lost profits, and, ultimately, high staff turnover. So, if hotel departments are encouraged to “fill in the gaps” together through collaborative problem-solving, the negative effects of staffing shortages can be minimized much more effectively.

This culture of cooperation also needs to be encouraged from the top. According to HR expert Deanne Soderberg creating a culture and building a strong people foundation can help hotels attract and retain high-quality applicants. Developing training for your teams and maintaining a community within your hotel makes it easier for different departments to work together far more efficiently.

Catering to Shifting Consumer Preferences for Healthier and More Sustainable Meal Options Adds Longevity to Your F&B Program

Although food and beverage trends seem to come and go with the popularity of short-form video content and the resulting online communities, there are common threads that can, to an extent, futureproof your hotel’s F&B program.

The core themes include a shift to non-alcoholic beverages, environmentally-conscious ingredients, sustainable product preferences, and more plant-based meals. Each of these consumer trends can be catered to with the creative input of F&B experts and external, multi-disciplinary insight to tie it all together.

Here are a few examples to illustrate how combining these multi-disciplinary insights can lead to creative solutions:

• A mixology expert can share specialized insight into the growing popularity of non-alcoholic beverages as more people (particularly the younger generations) gravitate towards these options for health reasons.
• A seasoned chef with hands-on hospitality experience can help design and create a restaurant menu that considers the rising number of people choosing to go vegan or flexitarian for the benefit of their health and the environment.
• An F&B expert with a holistic view of the hospitality and F&B marketplace can secure supply contracts with local companies to address the relationship between food waste and sustainability.

Together, this team of experts can create a menu – and an exceptional experience to go with it – that appeals to the widening range of consumer preferences without compromising on quality and taste.

Optimizing all Departments Now Gives Your Hotel a Head Start in the Face of Change

Multi-disciplinary problem-solving comes in to assess a hotel’s needs from all departmental perspectives to offer creative solutions to the issues or opportunities brought about by the shifting industry landscape. Although this can apply to many (if not all) hotel departments, a good example of this in action is the working relationship between revenue management and engineering teams.

Engineering experts can conduct Property Maintenance Assessments to ensure that everything in a hotel is operating efficiently to avoid the risk of lost revenue. With this insight, engineers can assist in the maintenance of hotel assets – such as equipment, facilities, and systems – and increase their returns on investment.

Once any potential issues are resolved or preventative measures put in place, a revenue management team can build on that foundation to evaluate and analyze top-line revenues and bottom-line profitability drivers. The end result of this approach to proactive problem-solving is a tailored strategy built on multi-disciplinary insight that’s unique to your hotel and helps you drive sustainable revenue growth across all departments.

Therefore, although their disciplines may differ, both departments can work together to optimize hotel revenue in unique and innovative ways, and by sharing insight into their respective processes, they can streamline certain operational processes to save time and resources.

Can You Adopt a Multi-Disciplinary Approach with Limited Resources?

If a hotel doesn’t have enough high-level expertise to implement multi-disciplinary problem-solving, what can they do now? There are external solutions for hotels to consider, such as hotel consulting, where industry experts can offer assistance on a per-project basis. Bringing in an expert – or even a team of experts – to facilitate these discussions can save hotels a lot of time and resources in the long run.

These multi-disciplinary experts can offer an unbiased, fresh perspective that’s based on years of varied hospitality experience. By pooling their knowledge together, the collaborative process happens seamlessly as they craft unique solutions that address your hotel’s specific needs.

Although it’s not possible to look ahead or know for certain what the hospitality industry will look like in the future, a multi-disciplinary approach to problem-solving can help your hotel adapt as needed (and quickly) in the face of unpredictable trends or industry disruptions.

Reprinted from the Hotel Business Review with permission from http://www.hotelexecutive.com/ .

Victoria Ehrman Strategic Solution Partners

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How to Deal with Common Challenges in the Hotel Industry?

Travel and hospitality is a lucrative industry. Over the years, the industry witnessed a tremendous rise in business.

However, despite the gains, inevitable challenges in the accommodation sector make running hotel businesses a little more difficult.

So, if you are frustrated and truly wondering how to overcome these hospitality challenges, then you’re at the right place.

This article talks about all the common challenges in the hotel industry and their possible solutions.

Table of Content

• Why Should You Know About the Challenges?
• Common Challenges in Hotel Industry and Their Solutions
• Hiring and retaining the staff
• Change in marketing trends and dynamics
• Operational issues
• Rising cost of daily consumables
• Housekeeping issues
• Change in guest expectations
• Irregular cash inflows
• Data security challenges
• Maintaining online reputation
• Losing loyal customers
• Change in technology
• Hotels are not data driven
• Rising competition
• Restoring business post crisis

Why Should You Know About All the Challenges in the Hotel Industry?

Running a hotel business isn’t a cakewalk. The level of risk involved is immense.

Therefore, hoteliers must keep an eye on every hurdle that comes their way.

Numerous hotels around the world tend to overlook most of the challenges. As a result, they face serious repercussions.

Let me share an incident.

There’s this hotel I visited in Prague. The property was just marvelous and I was loving my stay. On day 2 of my stay, I met the hotel manager and had a colloquy. And I got to know a lot.

They had to close two of their POS outlets. Reason? The system they were using to manage the outlets was sort of old school and didn’t have the automation aspect.

Initially, it didn’t seem to be a big issue, but when they had to perform certain tasks manually, discrepancies increased, and at one point it went out of hand.

Now, if you still think that you don’t have to emphasize every challenge, then that’s not correct. To keep a hotel running; in fact, prospering, an all-around inspection of all the challenges of a hotel business.

Common Challenges in Hotel Industry and Their Solution s

You don’t need rocket science to overcome challenges. Rather, you need to have a strategic approach.

Over the years, many hoteliers shared many pain points with us. So, in this section, we address a few global issues and challenges in the hospitality industry and their solutions.

1. Hiring and retaining the staff

Hiring and retaining staff has always been one of the most common problems in the hospitality industry.

Every hotel requires quality staff on all fronts; be it administration, maintenance, kitchen, housekeeping, or frontdesk. Lack of skill in the educated youths graduating from education houses is also proving to be a major challenge in the hotel industry.

Training the new workforce on a regular basis is the only remedy available. Retaining a qualified staff requires you to employ a few tactics. For example, cultivating a feeling of belongingness (culture) and value for the team members will make them attached to their jobs and instill a sense of responsibility in their minds.

2. Change in marketing trends and dynamics

Marketing is one of the most common challenges faced by the hotel industry.

Changes in the advertising and marketing trend often create problems for hoteliers. Also, traditional marketing methods aren’t that effective now. So, for those who have always stuck to the old-school ways, getting the strategy right is one of the biggest challenges of the hospitality industry. 

Online marketing is a surefire method, though it would take years for hotel owners to establish their strength. Online deals are booked by genuine guests and major transactions are paid in advance. 

Engaging your guests on social media , messaging apps, and other online sources can work wonders and give you results in a few months. Implementing effective digital marketing strategies is a strong solution to such issues in the hospitality industry. Be consistent and patient with whatever tactics you apply. It is inevitable that with the right strategies.

3. Operational issues

There are countless operational challenges in the hotel industry. Ranging from reservations management, attending to guests, performing all front office operations , maintaining cleanliness in hotel rooms and premises, and more. However, hotel departments often fail to perform all tasks in sync which leads to chaos and customer dissatisfaction.

Besides operations, front office problems and solutions are connected to an integrated hotel PMS system . The faster you adopt it, the better it is for your property. Your operations are automated and departmental functions are synced with a PMS because it simplifies communications to a large extent.

4. Rising cost of daily consumables

Price inflation of daily use products, eatables, and other supplies has risen steeply in the last few years. While that has affected all industries, it takes a huge portion of the issues and challenges faced by the tourism and hospitality industry.

A visible solution to this would be to keep a constant check on the inventory, control stock, and reduce wastage as much as possible. Consider implementing useful cost-saving strategies at your property, which would help you manage the rising costs.

5. Housekeeping issues

Cleanliness is a basic requirement of every guest. In fact, you’d also ask for a clean and tidy hotel room when you are traveling. A majority of hotel guests would prefer a clean room over complimentary amenities, any day. 

Also, if you think about it, an unclean and messy room is also a common guest complaint .

But there are times when it becomes a little difficult for hotels to stay true to this. After all, there are various housekeeping challenges involved and strategies are needed to be made to cope with them. 

Housekeeping challenges in hotels need to be managed well with effective strategies and thought processes. The housekeeping process needs to be aware of the clean and dirty rooms and constantly maintain common areas. Do highlight these measures on your website and social media handles to gain your guests’ trust.

This is the best way to manage tasks, and keep track of the arriving and departing guests, and you can prepare yourself well in advance. This way, you can easily avoid challenges in housekeeping operations.

6. Change in guest expectations

Changes in guest expectations are one of the biggest hurdles in the hotel industry. You’ve witnessed that nowadays guests demand a lot more from a hotel. Be it free WiFi, entertainment system, unique stay experience, or swift check-in check-out services.

And lately, people have also started expecting contactless hotel services to ensure a safe stay and eliminate their dependency on hotel staff. Certainly, it’s quite difficult to abide by these demands because of resource or capital bandwidth, but it will be imperative to do it.

So, contactless hotel services can be provided with the right technology. Consider deploying a self-service guest portal that will facilitate quick check-in and check-out services, share the location of your property, and even let guests request pick-up and drop-off services. Keep yourself updated with the latest hotel industry trends . Doing that will help you meet the changing guest expectations in a better way.

Check out the video below, to get an idea of how to provide a contactless guest journey at your property.

7. Irregular cash inflows

One of the major challenges in the hotel industry is the credit menace. Dealing with parties who pay after 30, 60, and 90 days or even later. While these types of dealings are bigger, they don’t help much during a cash crunch. On top of that, many payments are delayed or go into bad debt.

Consider changing vendors and suppliers following a long payment term. Or strike a deal with them to collect their due payments in installments rather than in one go. This will keep your boat sailing for a longer duration. On top of that, you can launch an online marketing campaign to attract bookings, since these strategies provide a quick ROI.

This way, you save on hiring extra personnel for payment collection and even get to pay your bills on time. In short, you have an ample cash reserve for working capital. And that’s the best thing you can do about dealing with such hotel industry challenges.

8. Data security challenges

The question of security is not a new one. While our data security methods have advanced considerably, so have the possibilities of data leaks and virus attacks. Threats of digital data theft and confidential data leaks are a matter of concern for hoteliers globally.

The first step to take toward secure data is to ensure proper data storage. Stop dealing with excel sheets and registers. Incorporate a secure hotel technology that prevents your data leaks. Technology today is PCI-DSS compliant as well as HTTPS secure, leading to better data encryption . This way you build your hotel’s credibility to bring in more guests.  

9. Maintaining the online reputation

Today, internet-savvy visitors look for the brand reputation first before booking a hotel room. But, maintaining an online reputation is another big challenge that hotels often face. However, this has not been a current issue in the hospitality industry. Reviews and reputation have been neglected across all industries since the beginning. Little do they know, that an unmanaged reputation leads to poor brand image.

According to a survey, 93% of travelers check hotel reviews before booking a room and 33% of guests do not prefer to book a hotel with no reviews. Moreover, it is always crucial to track what guests are saying about your brand and the services you provide. Review management systems help you monitor, manage and respond to your online reviews – regardless of the platform and language.

I also have something to assist you in responding to reviews.

10. Losing loyal customers

Since various hotels are constantly pouring in attractive offers, guests tend not to be limited to a single brand. Rather, they’re open to options; especially if you fail to connect and engage with them personally, and deliver a memorable guest experience.

Running loyalty programs is the MOST practical way to increase your loyal customer base. These include offering amenities, discounts, and reward points to guests against their membership. So, even if they’ve stopped using the services, you can approach your guests and offer them deals or packages. At the same time, do not forget to consider implementing ways to increase repeat guests at your hotel.

11. Change in technology

The advancements in technology are altering every aspect of our daily lives. Gone are the days when guests used to wait for hours or a day to receive answers to any query. Today, customers are expecting a fast response and services from hotels. Such constant changes are extremely arduous to adapt to, which poses a challenge.

Hotels have begun tailoring guest experiences with chatbots. Chatbots allow hotels to respond to visitors at once, answer every query instantly, and more. This further increases hotel bookings, and revenue.

12. Hotels are not data-driven

You are well aware that some hotels do not rely on any surefire data for business decisions. And because of the decisions based on assumptions, many hotels are forced to close down in a short span.

For instance, business decisions to spend for promotions on OTAs, interiors, room rates, and room types aren’t decided on the basis of actual statistical reports.

In order to fight one of the prominent challenges in the hotel industry, you are required to use software that‘ll give you all the business insights . It can help you in making informed business decisions and save on extravagant spending. Using the complete data analysis tool, you can even apply proper revenue management strategies to earn higher revenue.

13. The growth of local hospitality hosts and rising competition

These days, more and more property owners are renting out their rooms or property occasionally. Homestays and vacation rentals promise an authentic local experience besides being convenient. Owing to this, travelers prefer to choose those homestays over hotels and resorts. Other than that, new hotels are entering the market every day. This growing number of homestays and competition is one of the challenges in the hospitality industry of 2022.

First and foremost, solid competition analysis is needed. You need to know how your competitors are doing, monitor their strategies, and then devise better plans for your property. On top of that, you need to offer something significant to attract your guests. Constant innovations and personalized services are eventually the only way to beat the competition.

14. Restoring business post natural calamities and crisis

So, I think this is a recently faced challenge (or rather, ISSUE) in the hospitality industry. The whole world shut down traveling during the COVID-19 outbreak, because of which the hotel industry also had to shut down its operations. Canceled reservations, indefinite lockdowns, and shutdown hotels; this was probably the worst hit times for the tourism and hospitality industry.

While it is a challenge to survive these times, it is an even bigger challenge to come out of these times as a winner. And the hardest to restore the business in these uncertain times.

To be honest, none of us would have imagined a situation like this, where we would be fighting for our survival. But it is entirely up to us how we see these challenges, learn from them and come out even more potent than we were.

Businesses took this opportunity to evolve and innovate. and prepare themselves for the future. While these are all-natural calamities and not in our control, we can surely work on optimizing our operations and ensuring that our business stays alive amid the chaos. In the current times, you can use and implement strategies mentioned in our COVID-19 survival kit for hotels .

Every industry is prone to challenges and pitfalls, and the hospitality industry is no exception.

The last couple of years is accurate proof of it. But that same period is also proof that there’s nothing the industry can’t overcome. The way the industry has got back on its feet is indeed commendable.

Through this article, I have tried to help you have a clear idea of what challenges are common in the hotel industry. Try to determine the ones you are facing or likely to face, and then accordingly go about implementing the solution.

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Problem areas common for distressed hotels include: 

• Lack of differentiators. Hotels are sure to fall behind without a competitive advantage over other hotels in the same market and region.  
• Outdated or glitchy guest-facing tech. Slow Wi-Fi or an inefficient A/V setup can cause problems for business travelers, groups, and meeting planners. Ensure a seamless experience with fast Wi-Fi, app-based mobile check-in, text-based concierge services, and custom digital content. Small investments in the latest technology can go a long way to updating a distressed hotel. 
• Poor implementation of CRM software. Ineffectual CRM use is a missed opportunity. When used well, customer relationship management software can drive group sales and improve interactions with guests and event planners.  
• Weak performance in direct bookings. Direct bookings are more profitable for hotels than those made through online travel agencies (OTAs), which include commissions.
• Location. Hotels face definite hurdles to viability when located in a region experiencing an economic downturn or near a tourist area losing popularity. 
• Negative guest feedback and reviews without prompt responses. When a hotel is missing the customer service mark, there are almost always warning signs within guest reviews , even when the number of stars or percentages remain high. Reviews can reveal specific, sometimes easy-to-resolve issues, such as slow front desk responsiveness after a particular hour or a severely underwhelming continental breakfast. Additionally, replying consistently to reviews results in a ratings increase, according to a 2018 study of tens of thousands of reviews on TripAdvisor. 

Improve hotel performance with smart tech

Don’t get stuck focusing on the missing pieces alone. Even the most distressed hotels likely have strengths that only require a quick polish, as well as hidden information that can guide the turnaround strategy. 

Strengths and opportunities to watch for:

• Customer profiles. The hotel’s CRM is a treasure trove of helpful data when you know what to look for. Explore the hotel’s history of group bookings and customer segments. Business conferences? Weddings? Family vacationers? It’s possible the hotel’s typical guest is not ideal for the local market, or the hotel draws business travelers but could optimize business conference bookings.
• Explore data portfolio-wide. Let flourishing hotels within your portfolio guide your turnaround strategy. Analyze the cost of acquisition for key customer segments, along with the data on returning business and room rates paid within those segments. This process will determine the ideal customer profile, and you can ramp up marketing outreach to these groups.    
• Location. Hotels near interesting, unique landmarks, or within booming economic development zones, have a leg up on the competition. Leverage those more effectively with marketing that highlights local attractions or reaches out to planners at regional businesses. 

2. Keep the change process transparent, clear, and positive 

Discuss the key findings of the SWOT analysis with the specific hotel’s team, and share what those findings mean in the short- and long-term. You don’t have to go over each detail with on-site employees, but the overarching strategy should be transparent. It’s also essential to acknowledge achievements, show appreciation, and provide constructive feedback for the efforts of the current staff from day one.

Research into employee engagement consistently finds workers are happier and more productive when they understand what the organization is doing, expectations are clear, and hard work is recognized. The research also finds businesses with engaged employees outperform companies with disengaged workers.

3. Upgrade tech to streamline and automate essential processes 

Streamlined technology is critical to ramping up group sales and elevating the overall customer experience, both of which are essential to the turnaround process. 

The property’s sales team can use the CRM to pinpoint missed opportunities in event room reservations, such as annual quiet periods during which they can offer discounted rates to planners for meetings for local businesses, colleges, and nonprofits. Win/Loss reports can highlight common reasons for lost leads, whether it’s slow response times or outdated A/V equipment in the conference rooms. 

Technology can also help automate processes that drive business and enhance customer service. With apps like Zapier , for example, sales teams can automate emails to planners from companies and universities, and set reminders to check in on high-value group clients to ensure they have everything they need from the start of a conference to the end. 

4. Rein in excess spending

You need to divert all discretionary spending to the areas of the hotel’s operation that will have the most positive impact on the customer experience and revenue growth”from renovations to tech upgrades to service training. There are many opportunities to reduce spending inefficiency, but easy wins include:

• Schedule staff to match occupancy and event rates.
• Upgrade lighting and HVAC systems with sensors that turn lights off and set air conditioning and heating to energy-saving temperatures when rooms are empty.
• Cross-train employees so you can call on existing employees when short-staffed, rather than adding to the payroll .

5. Focus on outstanding service”and give employees the tools to deliver it 

Front-line employees have a significant impact on how guests feel about the hotel. Look for training shortfalls in all areas”from housecleaning to front-desk technology to people skills.

During this process, it will become apparent that some staff members are resisting change and negatively impacting the workplace culture. Unfortunately, employees who are ignoring directives or are otherwise displaying resistance to the repositioning process must be replaced for the changes to succeed .

The remaining employees are likely engaged in the turnaround process, so make sure you support their efforts. If you ask employees to go above and beyond to resolve customer issues, make sure you have enough staff on-hand so some employees can tend to problems, while others keep operations running smoothly.

Despite the rise of mobile check-in and text concierge services, guests still want satisfying face-to-face interactions. Offer soft-skills training to front- and back-of-house staff so communication with guests is friendly and authentic. Training to help staff manage customer complaints calmly and graciously is also invaluable.

6. Use psychology as an advantage 

Identify a strategic team to address all of the research you just conducted and ensure they’re psychologically prepared for the worst. That way, they are less likely to wonder out loud how things ever got so bad and offend the existing hotel team in the process”a sure way to establish deep resistance to the impending changes. 

What does this mean in action? Hold a strategic meeting before diving into a struggling hotel’s specific issues and before the first site visit to make sure the entire turnaround team is on the same page about the end goal of the project. The focus should be on repositioning the hotel, rather than assigning blame . Of course, it’s necessary to understand the particulars of what went wrong, but these problems rarely start with a single issue or individual. 

Remember, too, that you are walking into a property where management and employees are very likely worried and possibly defensive. Change is most certainly in the works, but you should treat everyone respectfully throughout the process. Introduce yourself to the on-site staff, from housecleaning to management, and learn their names as quickly as you can. Chances are the majority of the staff have been doing the best they can”kindness matters.   

And, occasionally, the team will get lucky and find the situation is far less dire than expected. A win from the starting line!

7. Prevent future problems with accurate forecasting

Accurately forecasting group demand, changing customer segmentation, and industry trends that relate specifically to your key markets can help hotels prepare for problems on the horizon and busy seasons. 

Make sure you are tracking the forecasts that most matter to your portfolio and your failing hotel. Perhaps you’ve been focused on leisure group forecasts when the hotel’s appeal has shifted to business groups and industry conferences. Knowing this can help you aim marketing dollars toward a more valuable audience of corporate event planners.  

Forecasts can also highlight shifts in room-type popularity, best-selling event spaces, and the geographic origin of incoming business. 

Valuable forecasts are impossible without consistent, day-to-day data inputs. Make sure the sales team understands the value of forecasting and how their detailed information helps make accurate predictions possible. A CRM is critical in providing these insights by tracking leads, actualized bookings, and issues.

Turning around an underperforming hotel is challenging, but also entirely possible. With analysis, action, and a mix of smart spending and savings, you can flip the trajectory of a hotel from failing to prospering .

Ready to gain valuable insights from a CRM? Request a demo of Social Tables’ Group Sales & Catering CRM for hotels”it’s free and easy to use!

Or learn more about how a CRM can boost group business . 

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13 Team-Building Activities for Hotel Staff That Actually Work

Team-building activities are used by many businesses, including hotels, to promote teamwork and improve the way staff members interact. While most of us are familiar with a team-building activity or two, they actually exist in several different forms: Team challenges, partner exercises, obstacle courses, puzzles, icebreakers , or even a coffee break. Team-building activities for hotel staff may look like outdoor games, puzzles, or office meetings, but they are designed to successfully engage employees , strengthen job skills, and help hotel staff members work better together.

In this post, we highlight a variety of team-building activities for hotel staff and discuss how each exercise benefits employees. Could your team benefit from improved communication skills, stronger team bonds, or a hearty morale boost? If so, consider using some of the following team-building activities to help achieve your goals.

Explore 13 of our favorite team-building activities for hotel staff

Every facet of hotel operations, from hotel revenue management to property maintenance, relies on teamwork. Incorporating team-building activities for hotel staff can benefit both hoteliers and employees by:

• Building trust
• Boosting morale
• Improving communication
• Enhancing problem-solving abilities
• Strengthening change management skills
• Empowering hotel staff
• Encouraging employee bonding

Successful team-building activities are fun, engaging, and have a clear objective. Whether your goal is to energize hotel staff, increase productivity, kick off a meeting, or create a better work environment, choose a team-building activity that aligns with your core objective.

“Team building enhances higher levels of trust and support," said Tinuke M. Fapohunda in  Towards Effective Team Building in the Workplace . " With team building, diverse co-workers work well together and there are higher levels of job satisfaction and commitment."

Team-building activities that grow trust

Hotel employees must work together to solve complicated problems every day. In the most successful hotels, employees know that they can trust and rely on each other. Try these team-building activities to build trust amongst your hotel staff:

1. Perfect Square: 10-15 minutes

Perfect Square is a fun, simple team-building activity that can help build trust between hotel staff members. The objective of Perfect Square, also called Blind Square, is for team members to work together to form a perfect square. To play, you will need a long rope and blindfolds for each participant. You can use bandanas, eye masks, or other eye coverings.

Stary by arranging blindfolded hotel staff members into a circle holding a long rope. Without being able to see, participants will drop the rope and take 2-3 steps backward. Instruct the team to return to the rope, still blindfolded, and work together to form the rope into a perfect square. When the team agrees they have successfully formed the shape, they will lay the rope on the ground before removing their blindfolds to view the final product. Discuss the exercise as a group.

To successfully complete this challenge, team members must listen well and trust the instructions of their fellow teammates. Because each participant can only feel the tension of the rope in their hands, and the movements of the players next to them, achieving the common goal requires trusting the entire team.

Bonus challenge: To make this team-building activity more difficult, challenge the team to form a more complicated shape, such as a pentagon or hexagon.

2. Blind Snake: 5-10 minutes

Line hotel staff members up in groups of five or six with their hands on the shoulders of the person in front of them. Each participant will be blindfolded, except for the person at the very back of the line. This team member — the caboose — will guide the line around various obstacles by giving verbal instructions. Having only the eyes of the caboose to rely on, Blind Snake participants must have blind trust in the instructions they receive, as well as the movements of the person in front of them.

3. Winner or Loser: 15-20 minutes

This team-building activity can help build trust and strengthen bonds between hotel employees. In Winner or Loser, hotel employees will be partnered up in teams of two. Instruct pairs to find a quiet spot in the hotel where they can speak privately.

To begin, one employee will share a personal story about something negative that they have experienced in their life, going into as little or as much detail as they prefer. Once finished, the listener will then repeat the negative event while focusing only on the story’s positive outcomes. The pair will then switch roles, with the listener becoming the storyteller.

By sharing personal stories with each other, team members will have a unique opportunity to build trust with one another, bond, and look at a negative personal experience in a new way. The more empathy employees have for each other, the more positive and supportive the hotel environment can be.

The Center for Creative Leadership analyzed data from 6,731 managers across 38 countries to evaluate whether empathy in the workplace had an impact on employee job performance. Their reported findings concluded that “empathy in the workplace is positively related to job performance.” In addition, they found that managers are viewed more positively by their bosses when they practice empathetic leadership.

“Demonstrating empathy in the workplace — a key part of emotional intelligence and leadership effectiveness — also improves human interactions in general and can lead to more effective communication and positive outcomes, in both work and home settings,” the Leading Effectively team concluded.

What's hot, what's not? 11 industry trends you need to know

Team-building activities that improve employee communication

No two days are the same for hotel employees. Whether navigating a rush of early check-ins, dealing with an unexpected plumbing problem, or mitigating interpersonal conflict, effective employee communication is a critical component of daily hotel operations. Invite employees to participate in team-building activities for hotel staff communication, such as:

4. A rollaway race: 15-20 minutes

Room attendants use their voices to guide team members from other departments as they attempt to make guest-room-ready, inspection-passing rollaway beds. Set a time limit for task completion, and see which teams are the most successful.

Communication is the only tool for assistance in this challenge. Participants must identify how their partner best receives instructions and shift their communication style to fit their partner’s needs. This team-building activity also gives employees from other departments a glimpse into housekeeping by demonstrating just one of the detailed tasks room attendants perform each day.

Bonus challenge: Blindfold the bed-maker to make this activity more difficult.

5. Non-work conversations: 15-20 minutes 

Team-building activities for hotel staff aren't always game or challenge-based. A quick chat with team members over breakfast can fall in the team-building category. Non-work discussions are critical for building productive communication channels between hotel managers and employees.

Data consistently supports that how we communicate can be much more important than what we communicate. MIT’s Human Diagnostic Laboratory conducted a study with the purpose of observing and identifying the key differences between top-performing teams and those with average performance. Researchers found that the most successful teams could be identified amongst their counterparts by their communication patterns; that communication patterns are important enough that they can be used to identify the best of the best.

The MIT report concluded, “With remarkable consistency, the data confirmed that communication indeed plays a critical role in building successful teams. In fact, we’ve found patterns of communication to be the most important predictor of a team’s success. …The key to high performance lay not in the content of a team’s discussions but in the manner in which it was communicated.”

Encourage your team members to join you for a cup of coffee or a slice of pizza. Talk to your team about their hobbies, personal goals, favorite foods, and other non-work-related topics. In an informal setting, you may find that employees are more willing to share candidly, especially when accompanied by their peers. You may also discover that multiple employees are facing similar challenges or be able to identify staff members who would work well together on future hotel projects.

6. Back-to-back art projects: 20-30 minutes

To prepare for this activity, draw random geometric shapes on multiple notecards to create abstract images: no rhyme or reason required. Next, divide hotel staff members into teams of two, and instruct each pair to sit with their backs together. Provide each team with a whiteboard and two of the notecards you created with the images facedown.

One person from each team will select an image card and spend 5-10 minutes describing the geometric image to their partner. Without being able to see their instructor, the listener will try to recreate the image using only their partner's descriptions. When the time limit has expired, teams will compare the two images before switching roles in the activity.

Once both employees have had an opportunity to recreate an image, encourage a brief team discussion about the exercise: 

• Did team recreations match the original images?
• Did both partners communicate effectively?
• Which instructions were the most helpful for each player? Why?
• When and why did each participant shift their communication style?
• Would any verbal adjustments have made it easier to recreate the image?

Ask each team to choose one or two key takeaways to share in a larger group discussion. Pinpoint recurring messaging and communication strategies , explore unique partner observations, and prompt each employee to identify one way they can improve their team communication skills in the future.

Problem-solving and decision-making team-building activities

Hotel employees need to feel empowered to make independent decisions effectively and with confidence. They should be able to provide excellent service and impress hotel guests while mitigating risks for the business at the same time. Incorporate team-building activities for hotel staff that are focused on decision-making and encourage teams to solve problems together.

7. Escape room: 60-90 minutes

Treat your hotel staff to a team-building outing to an escape room. Escape rooms are puzzle-themed activities that require participants to work together to uncover clues and solve complex riddles in order to escape a locked room.

Escape rooms and similar interactive group problem-solving experiences incorporate a variety of vital hotel team behaviors. In addition to requiring teamwork, communication, and problem-solving skills to escape their environment, hotel staff members will need to stretch their creative muscles and concentrate to perform well in escape-based team-building activities .

8. Boat Float: 25-30 minutes

Divide the hotel staff into teams of 4-6, and provide them with the same materials: cardboard, scissors, and tape. Give each team a brief time limit, 15-20 minutes, during which their goal is to craft a functional boat using only the provided materials. While the clock is ticking, fill up the bathtub in a non-occupied guest room. At the end of the time limit, each team will get an opportunity to see if their boat holds up on the water.

Boat Float is a creative, interactive team activity that can inspire hotel staff to think out of the box, work together, and discuss the best way to make a functional cardboard boat. Pay attention as each team discusses their strategies and take note of their communication skills. Identify which team members take the lead, those who do not speak up as much, and how team members discuss, evaluate, and overcome conflicting strategies.

“We always hope for the easy fix: the one simple change that will erase a problem in a stroke. But few things in life work this way. Instead, success requires making a hundred small steps go right - one after the other, no slipups, no goofs, everyone pitching in," said Atul Gawande in Better: A Surgeon’s Notes on Performance.

9. Team Puzzle: 10-20 minutes

Starting a meeting with a friendly, low-stakes puzzle competition can help employees loosen up as well as get their minds moving. Separate the hotel staff into teams that will race against each other to solve the puzzle first, or have the whole staff work together to solve a more complex puzzle. Team members will have to work together and communicate to complete the challenge, promoting employee engagement and teamwork.

Team-building activities that build bonds and boost morale

Employees who work in a supportive environment with high morale are more motivated, efficient, and engaged than employees who do not. According to the American Psychological Association , workers who enjoy their job are “twice as likely to be thriving in their lives overall — reporting strong relationships, effective money management, good health and engagement in their communities — as those who are disengaged and unhappy at work.”

Boost team morale and encourage employee bonding through team-building activities for hotel staff, such as:

10. Three-eyed ball toss: 5-10 minutes

Draw three eyes on a beach ball. Each of the eyes represents a word beginning with the letter “I”: improvement, intention, and inspiration. Gather hotel staff in a circle for this fun team-building activity, introduce the three-eyed beach ball, and explain what each of the eyes represents.

To play the game, start by choosing one of the three themes, and asking a corresponding question:

• “How does hospitality inspire you?”
• “What inspires you personally?”
• “What is your intention for today's meeting?
• “What skills have you most improved this year?”
• “What skill would you like most to improve?”

Use this activity as a meeting icebreaker or kick off your hotel huddle with a toss of the three-eyed beach ball for an injection of energy and positivity. Whether you need to help the hotel staff focus on the task at hand or help raise their spirits after a tough week, this team-building activity will do the trick.

11. Recognition competition: Long-term (1-6 months)

In this team-building activity, encourage team members to recognize each other for going above and beyond. Instruct hotel staff to complete comment cards and submit them to their department leader for counting. Place recognition cards in guest rooms and public areas of the hotel and instructions on where to turn them in so that guests can participate as well.

Group staff into teams and track recognition cards to tally the score. Regularly read comments aloud at team meetings and encourage staff members to be on the lookout for outstanding performances by their colleagues. Offer prizes for the team who receives the most recognition, the individual team member, the hotel department, or the employee who writes the most recognition cards.

Hosting a recognition competition can improve your hotel by:

• Promoting teamwork and peer-to-peer recognition.
• Promoting a positive employee culture.
• Helping staff members connect with one another.
• Encouraging hotel staff to communicate with guests.
• Improving guest satisfaction and service scores.
• Strengthening staff bonds and the desire to work as a team.

Each year, Hilton runs a similar brand-wide contest called “Catch Me at My Best.” Hotel team members, managers, and hotel guests are encouraged to “catch” each other at their best by filling out comment cards. Catch Me at My Best takes place from June through August, across all Hilton brands, and has for the last 25 years. Hilton created this program because they believe that “in order to provide a great guest experience, we have to recognize the individuals who make those experiences possible.”

12. Hotel scavenger hunt: 20-30 minutes

Get members of your hotel staff moving and working together with a hotel or brand-based scavenger hunt. Split hotel employees into small teams, preferably with members of different departments on the same team, to share skills and encourage cross-departmental communication . Instruct teams to solve riddles, find hidden objects, and figure out clues to complete the challenge.

By working together to solve clues and find hidden objects, hotel staff members have a unique opportunity to bond and create lasting memories with one another. In addition, mixing up day-to-day operations with fun, interactive team-building activities can help shake things up and prevent employee burnout .

13. Potluck: 60-90 minutes

Host a potluck and invite hotel staff members to bring a dish of their choice. Encourage employees to share personal favorites, family recipes, and dishes that represent their culture. Employees can mix, mingle, and bond with teammates as they try an assortment of tasty treats and discuss their individual dishes.

Potlucks are affordable team-building activities that require little planning. They can be used to help promote diversity, equity, and inclusion in the workplace.

“The shared meal is no small thing," said  Michael Pollan  in  Cooked: A Natural History of Transformation. "It is a foundation of family life, the place where our children learn the art of conversation and acquire the habits of civilization: sharing, listening, taking turns, navigating differences, arguing without offending.”

Try a team-building activity at your next hotel staff meeting!

Always consider the impact team-building activities could have on hotel staff. Respect staff boundaries ; never force employees to participate in group activities or share information that they are not comfortable with. Instead, discuss the importance of participating in team-building activities, explain the objectives for the exercise, what employees will get out of it, and encourage the team to have fun.

Building the right team all starts with finding the right team members. Up next, discover tips for hiring hotel staff and how to identify candidates with a heart for hospitality.

Don't miss out: Stay on the cutting edge of all things hospitality

Kim Campbell

Kim is a full-time copy and content writer with many years of experience in the hospitality industry. She entered the hotel world in 2013 as a housekeeping team member and worked her way through various departments before being appointed to Director of Sales. Kim has championed numerous successful sales efforts, revenue strategies, and marketing campaigns — all of which landed her a spot on Hotel Management Magazine’s “Thirty Under 30” list.

Don’t be fooled though; she’s not all business! An avid forest forager, post-apocalyptic fiction fan, and free-sample-fiend, Kim prides herself on being well-rounded.

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Decision Making in the Hospitality Industry: Strategies and Techniques

by Prince Kumar

Last updated: 23 July 2023

Table of Contents

Decision-making is a critical aspect of management in the hospitality industry. Managers need to make informed decisions that support their business goals, satisfy customers, and comply with regulations. In this blog, we will explore decision making in the hospitality industry in detail, including the organizational context of decisions, decision-making models, techniques and processes, and management by objectives.

Organizational Context of Decisions

The organizational context of decisions refers to the internal and external factors that influence decision-making in the hospitality industry. Managers need to be aware of the company’s goals, values, and mission when making decisions. They should also consider external factors such as market trends, customer preferences, and competition when making decisions.

• Decision Making Models

Several decision-making models are used in the hospitality industry, including the rational decision-making model, bounded rationality model, and intuitive decision-making model. Rational decision-making involves identifying the problem, generating alternatives, evaluating alternatives, and selecting the best alternative. Bounded rationality involves using limited information and time to make decisions. Intuitive decision-making involves using personal experience, knowledge, and intuition to make decisions.

Decision Making Techniques and Processes

Several decision-making techniques and processes are used in the hospitality industry, including brainstorming, nominal group technique, Delphi technique, and SWOT analysis. Brainstorming involves generating ideas in a group setting. Nominal group technique involves ranking and prioritizing ideas. Delphi technique involves using experts to generate ideas and reach a consensus. SWOT analysis involves identifying strengths, weaknesses, opportunities, and threats.

• Management by Objectives

Management by Objectives (MBO) is a decision-making process that involves setting specific goals and objectives and aligning them with the company’s overall mission and vision. Managers work with their employees to set goals, monitor progress, and provide feedback to ensure that they are meeting the desired outcomes.

Decision-making is a critical aspect of management in the hospitality industry. Managers need to make informed decisions that support their business goals, satisfy customers, and comply with regulations. They should consider the organizational context of decisions, use decision-making models and techniques, and use management by objectives to achieve desired outcomes.

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Syllabus – Management Functions & Behaviour

1. role of a manager.

• Task of a Professional Manager
• Responsibilities of a Professional Manager
• Management Systems and Processes
• Managerial Skills

2. Decision making

• Organisational Context of Decisions
• Decision Making – Techniques and Processes

3. Organisational climate and change

• Organisational Structure and Managerial Ethos
• Management of Organisational Conflicts
• Managing Change

4. Organisation structure and processes

• Organisational Structure and Design
• Managerial Communication
• Planning Process
• Controlling
• Delegation & Inter-department Coordination

5. Behavioural dynamics

• Analysing Interpersonal Relations
• Leadership Styles and Influence Process
• Group Dynamics

• Revenue Management
• Hotel Consulting
• Operations Management
• Asset Management
• Pre-Opening
• Owner Representation
• Turnaround Management
• About Xotels

Which Problems does your Hotel Concept Solve?

The Qbic concept is unique in many ways answering the needs of today’s world. It solves problems that hotel businesses, travelers, and destinations are dealing with on a continuous basis.

For a business to be successful it should be solving a challenging problem. Differentiate your concept by solving a problem your competition is not addressing. This will truly make you stand out from the pack and give you a unique story to build the success of your brand around.

Qbic Hotels took this approach a bit further. It actually decided more than one problem the hotel industry is facing; it addressed issues concerning real estate, economic downturn , traveler needs, and hotel business inefficiencies.

Yes, they set the BAR high for themselves, looking to create a new standard.

Here a list of common problems in the hotel industry they set out to solve:

• Underutilized commercial real estate
• High construction costs
• Long construction lead time
• Inefficient use of space
• High personnel and operations costs
• Cash flow challenges
• High quality comfort tends to be expensive

Underutilized Commercial Real Estate

Over the last decade many office buildings and other commercial projects have been developed in cities all over the world. Unfortunately due to the current economic climate many of these properties are not fully occupied or even empty. Qbic has developed a plug and play concept that can easily move into these vacant buildings, and requiring new build.

In London Qbic moved into an empty office building and converted it into a hotel right next to the business district of London City. And in Amsterdam Qbic is actually taking within an operating office complex, the World Trade Center, renting a few floors.

This conversion approach is becoming a very viable solution for owners of underutilized commercial real estate offering clear value.

High Construction Cost & Long Lead Time

The build-out of a hotel or conversion of a building is usually a lengthy process lasting from anywhere between 1 or 2 years. During this period a lot of costs are accrued, which will need to be written once the hotel has opened.

So it is essential key to keep construction time to a minimum and costs very much controlled.

Qbic has developed a plug and play room module, which significantly pushes back the construction time and cost. The pod unit, called Cubi, is pre-fabricated in China and shipped to the construction site. It is assembled inside the room. All you need is four walls and plumbing and electricity to plug into.

Here a video of the assembly of the Cubi:

The development of Qbic London City took only 6 months and stayed within the original cost budget. This is quite unique for our industry. Qbic Amsterdam WTC increased its capacity from 55 to 88 rooms (simply renting another floor) within just 1 month.

Again another important challenge new hotel development generally faces has been tackled.

Inefficient Use of Space

Using the Cubi module, we were able to reduce room size by 20% without the guest feeling cramped. The unit combines both the bed, TV, lighting and bathroom, requiring less space for a room. And the stylish design of the Cubi, adds to the uniqueness of the Qbic experience.

The lobby space is also smaller as due to the use of check-in machines a large reception desk is not needed.

To summarize, the Qbic concept can get more rooms out of a building, and still deliver a high quality and unmatched experience.

High Personal and Operation Cost

‘The Best Service is Self Service’, I would not be able to explain it better, hence a quote by the man behind the Qbic concept, Paul Rinkens.

People do not care if they have to go get something themselves. Actually they probably prefer to get refreshments themselves, rather than an unhandy and moody waiter serving them an overpriced drink or snack, potentially after a bit of a long wait as well.

What consumers are after is a quality experience at a good price.

Qbic is an efficient hotel all-round. The low cost hotel uses self check-in machines, coffee machines and vending machines on the guest floors (instead of in rooms), vending machines for drinks and healthy snacks in the lounge.

All food and beverage products are locally sourced and are of good standard. The price is much lower than you would normally pay in a hotel, so getting it yourself by swiping your credit card is a trade off our guests wholeheartedly welcome.

To run the operations of a 200 room hotel we only need 2 FTE’s per shift, plus a manager responsible for the overall property. Housekeeping is outsourced and works on a cost per cleaned room basis.

Unhealthy Cash Flow

A classic challenge we have been facing in the hotel industry for decade. Payment terms of 30, 60, 90 days or worse, are not healthy for any business.

Hence at Qbic Hotels all reservations are pre-paid. Just imagine, you launch a marketing campaign today, and reservations start coming in immediately and are paid for at time of booking

You actually have money coming into your accounts before you even have to pay your supplier invoices and payroll.

Affordable High Quality Comfort

Great, so we save a lot of cost. We could put it all in our pockets. But we would only end up with a boring stripped down hotel concept.

Wrong. You still have to offer a great value proposition. Part of the cost savings from construction and operations efficiencies are used to create the unique Qbic experience.

The Qbic concept offers the following basics that travelers are really looking for in a hotel:

• Perfect Bed
• Perfect Shower
• Soundless Room
• Immaculate Cleanliness

For the beds king-size mattresses from NaturalMat, all made from natural materials, are used. You will enjoy a night sleep at Qbic most will not even get at home. It’s a key value proposition of this low cost hotel concept.

Special wooden flooring, insulation and uniquely manufactured doors ensure for a sound proof room, also adding to an undisturbed night sleep. And in the bathroom you will find a large rain-shower to set-off your day on the right note.

It is seldom I sleep the entire night in a hotel, without waking up. The super comfy bed at Qbic did the trick for me however. Heads off to this smart investment!

And as they say, the Lounge is nothing like home. A comfortable living room built around a fire place and large cooking isle, which serves as the breakfast buffet. The carefully picked mash-up of furniture and decoration creates a cozy setting, in which after 8 hours of working I still felt at very much at ease.

Qbic Hotels is a very exciting project for Xotels to work on. We get the opportunity to challenge any industry dogma or ‘standard’. We have just recently launched a £1 promotion, offering 450 rooms at just  £1 to create brand awareness for the newly opened Qbic Hotel London City.

I hope this article will help when you are thinking of developing a new hotel concept. You should really go beyond a nice looking concept and challenge the status quo if you want to have a blazing success.

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Three innovations to solve hotel staffing shortages

During the COVID-19 closures, hotel staff around the world were faced with the precarious prospect of staying home. For instance, in the United States, 70 percent of hotel staff were furloughed or laid off. 1 “AHLA data shows 70 percent of hotel employees laid off or furloughed,” TSNN, May 4, 2020. Many hospitality workers reevaluated their career paths and work-life balance as they braved the pandemic—since then, these labor pools have shed their concierge badges and room service trolleys for jobs that offer more flexibility or higher pay, such as retail, e-commerce, or warehousing.

Hotels are now battling to restore their staff complement to pre-pandemic levels. A recent survey of 200 hotels conducted by the American Hotel & Lodging Association (AHLA) revealed that 87 percent of hotels in the United States do not have enough staff, and 36 percent of the respondents cited severe staff shortages. For 43 percent of hotels, housekeeping roles were singled out as being the most seriously understaffed. AHLA points out that similar staff shortages extend to hotels across the United States as employment in the hotel industry decreased by almost 400,000 jobs between February 2020 and August 2022, with more than 115,000 job openings yet unfilled. 2 “87% of surveyed hotels report staffing shortages,” American Hotel & Lodging Association, October 3, 2022.

Nevertheless, travelers are returning in full force , leaving hotels with no choice but to operate at pre-pandemic occupancy with fewer staff members. The staff shortage may provide an opportunity for hotels to reframe the problem, and think creatively about roles and staffing.

This article highlights the value of adopting a flexible and agile staffing model that aligns with dynamic demand. This approach is marked by three innovations that could improve operational effectiveness and employee job satisfaction, without compromising service quality.

While the article presents success stories and positive outcomes as a result of implementing these innovations, it comes with a caveat that staffing remains a complex issue and the human element should not be glossed over. In a time of staff shortages, employee satisfaction (and therefore retention) is more important than ever.

Would you like to learn more about our Travel, Logistics & Infrastructure Practice ?

Innovation 1: using standardized, activity-based metrics to forecast frontline coverage needs.

Many hotels and resorts base their staffing on average weekly occupancy. This does not, however, reflect real need, as occupancy often fluctuates from day to day and week to week. And averages, by nature, flatten out peaks and troughs.

Take the example of a golf resort: When comparing average occupancy to actual occupancy, it is clear that weekly average numbers do not adequately reflect peak days or account for fluctuations day to day or week to week (Exhibit 1).

One solution could be to expand overall occupancy metrics to include specific measurements, like number of check-ins and check-outs, or number of tables seated at the hotel restaurant. Leveraging these metrics to match staffing to daily need (or even hourly need) enables hotels to define a standard set of productivity metrics for each type of role, which can be applied consistently as demand fluctuates.

A hotel could, for example, optimize staffing by assigning one room attendant for every 15 check-outs. Cleaning and laundry could also be scheduled to serve only the forecast number of check-outs per day. Where management ownership is shared across properties, further coverage can be achieved by standardizing activity-based metrics across all properties.

One hotel shifted from using weekly averages to staffing according to peaks in occupancy. By scheduling an additional front-desk employee for hours with high check-out volumes, this innovation reduced the total labor hours needed by about 10 percent. This also created better work-life balance for front-desk staff. One front-desk employee had previously left the industry to meet her childcare needs. She later returned to her position at the hotel because she could now work the new part-time shift during peak check-out periods. This freed up time for her to complete her work day, and still be home by the time her children returned from school.

Innovation 2: Redesigning roles to combine jobs

Traditional hotel staffing involves distinct roles with clear divisions between managers and frontline employees. And each discipline—such as housekeeping, front-desk, and maintenance—has separate promotion paths.

To build resilience in times of staff shortages, hotels could redesign roles so that fewer people are needed to perform the same number of tasks. This could involve combining similar roles, or cross-training staff so that they can switch roles.

For instance, when combining roles, housekeeping management could be combined with front-desk management to form a single set of duties. Hotels could also introduce a player-coach model where one role involves supervising and performing work, such as a housekeeping supervisor who manages a team and cleans rooms.

Staff can also cover multiple roles as needed. Night-shift roles could be transformed by combining low-touch housekeeping duties with front-desk coverage during quieter times.

Redesigned roles could potentially improve employee satisfaction by empowering staff to explore new career paths within the hotel’s operations. Combined roles build skills across disciplines—for example, supporting a housekeeper to train and become proficient in some maintenance areas, or a front-desk associate to build managerial skills.

How to ‘ACE’ hospitality recruitment

Innovation 3: creating job networks across properties.

Where management or ownership is shared across properties, roles may be staffed to cover a network of sites, rather than individual hotels—especially where a hotel group may already have centralized administration for functions such as legal, accounting, and human resources.

This approach could be effective for various roles including office support, frontline staff, specialized positions, and management. In specialized roles such as maintenance, security, or events planning, a single person covering multiple properties can create value as needed. Activities staff, for instance for kids’ clubs, could also be shared. Frontline roles could be networked across properties, without sacrificing customer service. For example, a concierge or front-desk employee could alternate shifts between two nearby locations, or two different types of properties with different needs. A resort may need check-out staff later in the day whereas a hotel that caters to business travelers would need more staff in the mornings. Managers could be pooled to lead two smaller teams at two properties, instead of being focused on one.

Combining innovations to elevate operations

Though each intervention could alleviate some of the post-pandemic staff shortage issues, a combination of all three innovations could bring about a considerable reduction in weekly staff hours for a hotel property.

To illustrate, at one resort, weekly hours could be reduced by up to 18 percent by applying these three staffing innovations, specifically to front-desk and housekeeping roles. In this instance, using hourly demand to plan for staff coverage could have the greatest impact (Exhibit 2).

In many cases, employee engagement and retention have increased at hotels where all three measures have been adopted. For example, a property group under shared ownership adopted all three measures during the past two years which led to new ways for employees to grow and develop. A housekeeper who never imagined himself in a managerial role is now a shift supervisor, and employees who learned English while in back-of-house roles have embarked on training to pick up new front-of-house shifts.

These successes bode well for understaffed hotels, as McKinsey’s 2020 Employee Experience survey shows that employees who report having a positive experience at work are 16 times more engaged, and are eight times more likely to remain with their employer, than employees who report a negative experience.

Accordingly, hotel owners could make efforts to engage employees when it comes to staffing innovation by exploring, testing, and experimenting to find what works best for their employees as well as for their business needs and operating environment.

While these three innovations, alone or in combination, can lead to operational improvements, they may be easier to implement at some types of hotels than others. For instance, resorts may find it easier to provide employees with new career paths, cross-train staff, or combine similar roles. Hotel-chain operators may find it easier to share roles across locations. Many smaller, limited-service hotels have already implemented job sharing, so this particular innovation may not offer much value. Hotel owners may need to assess what would likely work best for them and their particular business model and context.

As hotel occupancy continues to recover post-pandemic, hotels have the opportunity to think innovatively about staffing. By adopting a more flexible staffing model based on dynamic demand, hotels can deliver pre-pandemic levels of service even if they are short staffed. Of course, the key to implementing any staffing innovation successfully is to keep an eye on employee engagement, and ensure that any change is good for people, and the business.

Ryan Mann is a partner in McKinsey’s Chicago office, Esteban Ramirez is a manager of client capabilities in the Dallas office, and Matthew Straus is an associate partner in the Carolinas office.

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Soft Skills and Interpersonal Skills for Tourism and Hospitality Industry

• Living reference work entry
• First Online: 25 October 2023
• Cite this living reference work entry

• Sarah Hussain 2 ,
• Gagandeep Soni 3 &
• Firdous Ahmad Shah 2  

Part of the book series: Springer International Handbooks of Education ((SIHE))

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This chapter presents the importance of soft skills along with interpersonal skills in enhancing the workplace effectiveness in tourism and hospitality industry. It reflects upon rationale for service industry’s need for professionalism. Service industry offers some intangible action that meets a specific requirement. How a service is conducted leaves an everlasting impression on the consumer. Constant upgrading customer service as per the quick changes because of globalization is one of the challenges that the entire service sector faces. For the tourism and hospitality industry, this is a major concern as the customers seek experiential service encounters.

Hence, with excellent interpersonal and soft skills, the entire service experience could be enhanced. In this light, this chapter explains the role of soft and interpersonal skills in service industry. Interpersonal skills are a part of a person’s soft skills, and as a general definition, both are used to interact with other people. Nevertheless, interpersonal skills cover a more generic version of this than soft skills do. Soft skills are the personal values that one has like empathy, consideration, etc., while interpersonal skills ascertain an individual’s ability to interact well with others. These skills comprise of effective communication skills, leadership, and teamwork skills, problem-solving capability, proactive approach, sincerity, and strong work ethics. This chapter explains the interpersonal skills that need to be developed for quality customer service, workplace interactions, and etiquettes.

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Hussain, S., Soni, G., Shah, F.A. (2024). Soft Skills and Interpersonal Skills for Tourism and Hospitality Industry. In: Sharma, A. (eds) International Handbook of Skill, Education, Learning, and Research Development in Tourism and Hospitality. Springer International Handbooks of Education. Springer, Singapore. https://doi.org/10.1007/978-981-99-3895-7_7-1

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DOI : https://doi.org/10.1007/978-981-99-3895-7_7-1

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