Is your hotel under performing? do you want it to be turned around?
How do you find out if you need to turnaround your hotel business?
There are several reasons why hotels underperform. Look out for the following signs in your hotel’s business:
- There is a steady or even a sharp decline in occupancy. You think that it’s the market to be blamed but then find out that your competitors are doing good.
- More than 70% of your business comes from third party channels
- You end up paying over 35% (on an average) of your room revenue in commissions
- There is a fall in your ratings on trip advisor and other review sites
- There is a high staff turnover
- Your regular guests say that “your service standards are not what they used to be earlier”
- The most common method used to sell rooms in your hotel is by increasing discounts and lowering room rates
- You have to spend frequently on the room upkeep and your maintainance costs are on the rise
- There is a lack of cash flow for capital improvements, employee training and sales efforts.
- Guests call your reservations to tell them how otas are offering lower rate for your room and ask you to match them if you want the booking
- A walk – in guest comes to your lobby and enquires about the room rate. When your staff offers him the best rate (approved by management) the guest checks the ota sites on his phone and goes ahead to book the same room in the ota while at your hotel and you have no choice but to accept the booking.
- Guests who stay at your hotel hardly have any meals in your restaurant. (besides the complimentary buffet breakfast of course…)
- You have a low rate of repeat guest bookings
- It’s high season time and you expect to cover up for the lean season gone by. Your hotel gets sold out first in the market. You are obviously happy but then realise that your competitors sold the rooms at a much higher rate than you.
Do any of the above scenarios look familiar to you? Are you experiencing these in your hotel? If your answer is yes, then know that its time for an overhaul…
So what exactly is hotel turnaround?
Whenever the revenues of a hotel start declining, the management team of such underperforming asset all too often resorts to a singular focus on cost cutting to offset dropping revenues of the hotel. This results in a further downward spiral for the hotel.
At divine hospitality, we believe that a hotel turnaround is a improvisation process with a holistic approach. It’s an all-inclusive solution that starts with a comprehensive analysis of challenges and opportunities covers and helps you to optimize:
- Quality of your asset;
- Service delivery;
- Revenue generation and retention;
- Precise and detailed forecasting;
- Margin controls tied to forecast models;
At the same time, please note that leaving one of these elements out of the equation will lead to mixed results. And affect the process to drive the necessary change.
We can help you turnaround your hotel asset:
- We believe in an innovative approach when it comes to hotel turnaround management. After understanding your current strategy, we then perform an in-depth swot analysis for your property and identify your core strenghts that can be built upon further as well as the areas needing improvement or your weaknesses which need to be improved.
- We then develop a customized strategy plan for your hotel to rejuvenate your operations and sales and help in effective repositioning your property in the competitive market landscape. , repositioning the property amongst its competitive market landscape.
- While doing this we understand that time is of the essence and the turnaround of your property will depend on the speed of excecuting the strategic turnaround plan. We work closely with your team in this process to ensure that you get the desired results.
- With a competitive strategic approach, we help owners and managers in turning the tide for distressed hotel properties. Our proven hotel business transformation methodology focuses on increasing your revenues and bottom line profits.
Our hotel turnaround management services are spread across the following areas:
Ready to begin the transformation of your hotel business?
Get in touch with us today to schedule a no – obligation initial meeting to know more about our hotel turnaround services.