Between the rising cost of labor, decreased demand and ever-changing COVID-19 protocols, hotels have taken numerous hits to profitability. Conditions likely are going to remain challenging for some time to come, but Chris Cylke, COO of asset manager RevPAR International, has a quintet of tips for hoteliers to manage costs more effectively.
Where a Lot of Hotels Get it Wrong
I am often surprised by the initial reaction of many hoteliers. In general, we are willing to outsource specialist fields like legal, accounting and payroll, but are averse to getting professional help when it comes to improving our strategies to generate more income.
Why, I wonder? It seems it is more an emotional response, than one based on business requirements. Unfortunately, too many hotel managers seem to be of the opinion they can perfectly well qualify a revenue manager for his skills and strategic vision.
I am often surprised by the initial reaction of many hoteliers. In general, we are willing to outsource specialist fields like legal, accounting and payroll, but are averse to getting professional help when it comes to improving our strategies to generate more income.
I beg to differ with that. Based on my experiences I must actually strongly disagree. Objectively how can someone qualify as a specialist, if he or she does not actually do not have the technical qualifications themselves? On the basis of what would you qualify as a revenue manager, if you do not know what the job really entails?
And no, it’s not just simply about changing some rates here and there, which seems to be a common misunderstanding amongst many hoteliers. Mind you, even with that there are complexities involved on which you need to be certain of a potential revenue manager candidate that has the right skills and experience.
