Veteran hotelier and independent consultant, Giovanni Angelini, offers pearls of wisdom on how to stay afloat in today’s competitive industry.
In this first instalment, he outlines broad trends sweeping across the hospitality sector and dispenses tips to hotels on how to meet the changing needs of customers from pre- to post-stay.
The pressure to perform and produce better results, growing competition, sophisticated and demanding customers, a less engaged workforce required to do more with less and managing more business channels are just some of the challenges the hotel business is facing today.
Now more than ever, hotel executives and leaders must be fully aware of economic trends and familiar with hospitality industry indicators in order to respond efficiency and effectively. Here are some guides and reminders to keep them on the right path towards achieving better results.
Challenges and opportunities facing the industry
- Flat demand from the West, increasing demand from Asia
- Shortage of a trained and committed labour force, especially in mid-to-senior management
- Compounding costs and continuous increases
- Higher/unrealistic expectations from owners and investors
- Intensified competition and growing number of brands in the market
- Forecasting customer values and expectations
- Maintaining a healthy balance in distribution
- Climate change and natural disasters
- Global power and political shifts
The changing customer
According to a survey by Market Metrix of American, European and Asian travellers in 2012, location topped the list of what motivates them to select a hotel, followed by price and past experience. Scores on brand reputation and loyalty programmes were on the low side. Going forward, would customers have similar motivations on selecting a hotel in 2013 and onwards?
Source: Market Matrix
The emerging middle class in many developing countries comes with a stronger appetite for consumption. Surveys show customers are prepared to pay more for top-of-the-line quality, while they have less tolerance for impersonal and substandard services. Online reviews, ratings and scores are also important to customers. Due to the increase in number of guests travelling with mobile gadgets, they require user-friendly in-room connections and battery-charging facilities. Smartphones are also becoming increasingly popular in accessing mobile websites.
Maximise potential of e-commerce through
- Adapting to online marketing without losing the personal touch
- Brand protection from third-party users
- Search engine optimisation
- Continuous upgrading of website (every 24-36 months)
- Making online bookings faster and simpler
Fully exploit technology in hotels by having
- Superfast/high-speed connections with both wireless and cable and with significant download capacity (plus all international multi-socket plugs in the rooms)
- Free uninterrupted, multiple-user Wi-Fi everywhere within the hotel including public areas, restaurants, hotel limo, elevators, rest rooms, etc
- iPods and/or tablets in the rooms
- Electronic check-in and check-out
- Integration between POS and PMS systems incorporating customer relationship management with the objective of customer recognition and response to customers’ needs
Rise of wellness and sustainability
Health, fitness and well-being are becoming essential needs, and there is increasing expectation that hotels will provide top-of-the-line facilities and services in this area, and not just at the spa.
Here are some trends
- Healthy and nutritionally balanced menus with a focus on local and seasonal items; think also of a healthier minibar (items with less sugar/sodium/fats)
- Vegetarian and gluten-free choices are a must-have
- Large “wet room” style showers with strong pressure are preferred over traditional bathtubs, but without wastage of water
- Paperless check-ins and check-outs, and the reduction of paper consumption in general
- Quality pump dispensers in bathrooms rather than little toiletry packs
- Stronger focus on CSR strategies and investments towards equipment, education and attitude
Wowing the guest
First impressions are critical and all the below appear to be routine but are extremely important and, in many cases, overlooked. It is well known within the industry that one of the biggest guest complaints as reported by quality surveys are on arrival and departure.
The following is a checklist that starts right from the booking process
- Is your reservation/confirmation document that the guest receives clear enough?
- Does the hotel send a reconfirmation note close to the arrival date with the latest information of what the guest will expect on arrival?
- What is the status of your driveway and exterior surroundings of the hotel, including the traffic flow and efficiency of doorman?
- Is your bell staff efficient in handling of luggage?
- What do your guests encounter when they enter the lobby: lighting, décor, directions, smell, etc?
- Are your front desk staff welcoming, warm, attentive, efficient and informative?
- What hotel front desk system do you have? Are tablet computers provided to facilitate check-ins at different locations?
- Does the guest receive all necessary/basic items/information at the front desk? E.g. working-condition key, access code to Wi-Fi, check-out date, method of payment, etc.
- Are the elevators clean at all times, speedy fast and with updated advertising material?
- Are the lift landings clean, attractive, well-lighted and equipped with an in-house phone?
- Are the corridors well-lighted with clear indications, quiet and are room numbers easy to find/read?
- Are door locks in good working order at all times?
- Within rooms, ensure these are looked into: lighting switches/controls, cleanliness, TV, working desk, connectivity, temperature control, luggage rack, black-out curtains, amenities, etc.
Managing business
Delivering customer satisfaction remains the ultimate objective of hospitality. Always deliver what has been promised and avoid overpromising. Observe first-hand how guests are treated, the efficiency of operations and compare this with your competition. Reflect on how you cater to new demographics of travellers, such as female business travellers. Lowering rates is an ineffective strategy to increase revenue and market share. It lowers the value of the whole competitive set and destination, and takes years to recover from. Invest in resources that add value to customers, staff and the product.
In your annual business plan, consider
- Is the owner assured that the operator has explored all potential revenues and enhancements to optimise returns and asset value for the hotel, and given the right benchmark?
- Does the owner buy in the operator budget process?
- Is the budget developed on zero-based principles?
- Is each month properly forecasted? Are the forecasts proactive or reactive?
Look out for the second part of this hotel leader series, where Angelini will touch on branding, sales and distribution, and human resource management.
By Giovanni Angelini
