Hoteliers admit finding new ways to manage revenue is their biggest challenge

  Posted in Revenue Management

Hotels face challenges with revenue management

A new report from SiteMinder has revealed the key focuses and drivers of success for hoteliers across the globe.

In its annual global survey, SiteMinder asked hoteliers, from both independents and groups, in all regions around the world to evaluate their priorities, challenges, strategies, and sentiments on everything from distribution plans, budgeting, staff hiring, technology adoption and of course, future success.

Chapter three of ‘SiteMinder’s Global Hotel Business Index 2018: What are the key drivers on a hotelier’s path to success? asked hoteliers to offer their view on employment in the industry and what their top three management challenges would be in 2018.

In regards to staffing, hoteliers were given a number of statements with which they could agree, somewhat agree, or disagree. They included:

  • Staff training and management is a priority if guests are to be kept happy
  • Staff motivation and upskilling is a constant challenge
  • My staff are the one reason guests keep coming back
  • It’s hard to find job applicants with the necessary skills and qualifications
  • It’s difficult to retain my staff long-term
  • There are not enough pathways in the industry for employees to progress

Almost 85% of hoteliers agreed with the first statement, while 62% agreed staff motivation and upskilling is a challenge, and 56% confirmed staff play a major role in guests returning to stay at the hotel.

Less than 30% agreed retaining staff was an issue, and only 24% didn’t think employees had enough career pathways to take.

Hoteliers were also given a list of challenges they might encounter this year and were asked to rank their top three. They were:

  • Finding new and better ways to manage revenue and profit
  • Staff management and recruitment
  • Guest satisfaction such as online reviews
  • Reservation management
  • Improving channel management and distribution
  • Knowing what technology to install

The most dominant challenges according to the hoteliers will be finding new and better ways to manage revenue and profit (71%) and achieving guest satisfaction (68%), followed by improving channel management (52%). The least concerning challenge for hoteliers was knowing what technology to install at their property (30%).

What did hoteliers tell SiteMinder about staffing and technology?

Hoteliers were given the chance to voice their personal opinions on the questions about industry strategies, their individual properties, and other insider knowledge.

Here’s a selection of the key quotes.

“Passionate staff are hard to come by. Keeping them happy and motivated is what management needs to work on, on a daily basis.”

“Our biggest challenge is actually the explosion of the hotel market in our area. New availability means new competition.”

“Most of our staff have been here for many years. Having a lot of regular customers, this is great since ‘we know our guests’ by name and story.”

“Our biggest challenge is actually the explosion of the hotel market in our area. New availability means new competition.”

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What are SiteMinder’s insights on the findings?

It was surprising to see only 24% of hoteliers agreed there were not enough career progression opportunities for employees. This suggests staff turnover is not primarily caused by job frustration. Instead, it may have more to do with a young workforce who use hospitality jobs as a stopgap while they pursue other careers – or that there is simply not enough education for specific hotel positions like revenue managers or distribution managers. What is clear is that staff training and management is vital to ensure guests have a memorable and enjoyable experience. Hoteliers recognise this and should always place a large focus on hiring the right people.

Driving revenue and increasing profit are always top of mind for hoteliers so it’s no surprise they see this as their greatest challenge moving through this year. Two other challenges, guest satisfaction and channel management, can directly impact a hotel’s potential to create higher-value revenue strategies. By securing stellar reviews and optimising their online distribution, hotels have more opportunity to increase rates, sell more rooms, and gain flexibility around their rate plans. This is why hoteliers must always be thinking on their feet to create multifaceted, long-term distribution strategies.

Other chapters in SiteMinder’s report include:

What are your biggest business focuses at your hotel in 2018?

How do global hoteliers think about staffing at their business and what are their biggest management challenges?

What attitude do hoteliers have towards new technology and what are they adopting  at their hotel?

Does the way hoteliers analyse their potential guests match the way they market their hotel and drive success?

To download the full report, click here or on the banner below for access.

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