The hospitality industry is one of the most profitable in the world. It also happens to be one of the most competitive. There are situations when a financial crisis can occur for your hotel – to the point where the likelihood of hotel survival is questioned constantly.
At that point, it’s sink or swim. It is possible to “swim” and this guide will show you how to get it done. You’ll learn plenty of tips on what you need to do for your hotel to survive in the event of a financial crisis. This could be an individual situation or industry-wide.
Regardless of this situation, it is important to follow these crucial steps below. If you execute these properly, the chances of your hotel survival will increase. Let’s begin now with what you need to know so you can make critical decisions as soon as today.
Effective Hotel Management
At a time where hotel survival is critical, this is where your management skills must be effective. That’s because you’re going to be making some decisions that will be the toughest you’ve ever made. As such, some of these will change someone’s life (including your own).
Here are some things you may want to consider if you are in hotel management:
Cash Flow Management
After all, we’re talking about a financial crisis. So this is the first thing you want to focus on. You want to take a look at the cash flow in its current situation.
This includes analyzing your financial statements (like income statements) and balance sheets. You want to find out which areas where reducing expenses is possible. The reality is that you may be paying too much on certain expenses.
This means you will need to make a switch with different vendors (assuming it’s a product or service that is crucial to your business operation). That way, if the price is affordable enough, you can utilize them for whatever need it satisfies.
Otherwise, if the expense you are paying for doesn’t serve a critical purpose, you’ll want to cut it out completely. This can be a temporary or permanent solution to your financial issue.
In order to make hotel survival a greater possibility, you want to consider implementing cost reduction actions. These should include but not limit to the following:
Energy Efficiency: This includes technologies designed to help you save energy while lowering your utility costs in the process.
Staffing adjustments: Your most critical decisions will involve staffing. You want to make adjustments to match the current demand. This can include letting go of personnel in order to meet costs pertaining to payroll.
Inventory Management: This is where you need to take a look at the idea of minimizing waste. Another thing to minimize is overstock. Inventory control will have to play a huge role in order to save money going forward.
Maintenance Prioritization: If your hotel is dealing with issues that require critical maintenance, these need to be addressed immediately. Put off any planned cosmetic upgrades until you are able to get your hotel back in good financial standing.
Hotel Marketing Tips
Getting the word out about your hotel will be important. However, there are several cost effective strategies you can do in order to bring your hotel back up to good financial standing. Let’s take a look at the following:
The digital age has brought us plenty of marketing opportunities outside of the standard television, radio, and print channels. That’s why it is important to consider digital marketing as a useful strategy for getting more customers. This includes these practices:
Website optimization including SEO optimized content.
Social media engagement while maintaining an active presence.
Online advertising including Google Ads and Facebook. Both of them are great platforms to help reach a broader audience.
Special Offers and Packages
One of the best ways to bring in potential guests is with special offers and packages that provide them with value. These include:
Staycation Packages: These include package deals that are aimed at local or regional residents. It wouldn’t hurt to at least get out of the house and stay somewhere else – even in your own hometown. Pretty cool, right?
Flexible Cancellation Policies: This includes options where they can book on flexible dates. Also, you can make the cancellation policies simpler for them in case plans change. And even better, it can be done at little to no cost.
Use guest reviews to your advantage
Positive guest reviews will provide you with plenty of social proof. Make sure they are authentic and come from real customers.
This will help other potential customers make an informed decision.
After a guest stay, suggest that they leave a review about their experience. From there, you can leverage positive reviews that can draw in more people.
Seek Hotel Consulting If Necessary
When it comes to your hotel survival, it might be a wise idea to talk to a hotel consulting expert. They will provide you with a tailor-made solution to address any specific challenges your hotel might be facing. Keep in mind that your solution to your hotel issue will not be the same as others.
Every situation is different, which is why a hotel consultant has a custom-made solution to ensure long-standing success. They will provide you plenty of insight on cost-saving measures, strategic planning, and revenue optimization among others.
Your hotel’s survival is critical in a time of financial crisis. It is up to you to make the hard decisions to ensure it stays in operation. Use the mentioned steps above as a way to help generate more revenue to pull yourself out of the slump.
In the meantime, you want to consider cutting back on expenses. There will be some tough choices that you’ll need to make in this regard. At the end of the day, they are necessary evils in order to ensure the survival of your hotel.
Be sure to follow these necessary steps and do not skip over any of them. If you need to, be sure to seek the help of a hotel consultant.