Managing your hotel’s budget and generating revenue

A new report published by SiteMinder has revealed the budget priorities for thousands of hoteliers all over the world.

SiteMinder asked hoteliers, from both independents and groups, to rank their priorities, challenges, and issues from high to low on everything from financial plans to focus areas, and of course, the future.

Chapter two inside ‘SiteMinder’s Global Hotel Business Index 2017: A visual look at financial plans, focus points, and future predictions’ asked hoteliers to outline the areas they’re planning to distribute their budgets over the next 12 months.

Hoteliers could choose from a matrix of options –

Revenue-generating strategy management
Digital marketing including your website and SEO
Social media strategy and management
Amenities including room upgrades or new facilities
Booking / hotel management technology
Hotel staff recruitment and training programs

Boosting revenue by spending on strategy management came out on top with a ranking of 50% – closely followed by digital marketing activity.

Hoteliers said they would be allocating less budget to staff training and recruitment – ranked at 28% in comparison – indicating the need to spend more money on newer skills such as SEO.

What did hoteliers tell SiteMinder about their financial plans?

Many hoteliers surveyed spoke about improving their digital marketing and online presence and the need to put money behind these efforts to make headway.

Here’s what they told SiteMinder:

“We should get a new website. Should look at a better WiFi service for our guests, possibly even free WiFi.”

“Our hotel is only 18 months with great loyal staff. Our website is being upgraded and we pay to have Facebook managed.”

“We have a website, probably expanding into the mobile-friendly market is desirable, however we have outgoings dedicated to structural changes in 2017 that will probably defer this to 2018.”

What’s the SiteMinder perspective on the findings?

Chapter two’s results show just how many hats hoteliers wear and the difficulty they face, not only managing them all, but also prioritising where to spend their crucial budgets.

Similar to chapter one’s findings, which looked at business goals for 2017, investing in hotel technology came low down the list of financial priorities. Hoteliers should look for solutions, whether it be an online booking engine or website builder and editor, that suit the property’s need. Smart and simple hotel technology is a more affordable option than hoteliers perhaps realise.

Other chapters in the report include –

Achieving Your Hotel’s Business Goals
What are your biggest business focuses at your hotel in 2017?
Tackling Your Hotel’s Biggest Rocks
What are the biggest challenges currently facing your hotel business?
Understanding Your Industry’s Issues
Thinking about the broader sector, what do you believe are the biggest issues facing hotels?
Recognising Your Motivations
As a hotelier, what are you most passionate about during the day-to-day?
Predicting Your Hotel’s Future Technology
What developments do you think will accelerate in our industry over the next 10 years?