Almost every hotel today has access to or can easily get access to sophisticated pricing algorithms, innovative marketing campaigns, and revenue management tools. The barrier to entry is lower than it has ever been, and there are smart people available for hire to help you utilize these tools.
NB: This is an article from Vikram Singh
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So why are we seeing so many hotels struggle to maintain sustainable commercial success?
The answer lies in hotel operations. Specifically, I want to single out General Managers. It’s time to acknowledge that the right GM plays a crucial role in making sure your hotel revenue goals are achieved. In fact, you can’t really succeed today without a good one.
Operational excellence is now the holy grail of hotel commercial optimization. Finding and retaining a great hotel General Manager is more crucial today than every before. They are the bridge between commercial ambition and operational execution. Yes, they are the ones who can make all your dreams of commercial success come true. But only if you involve them in your decision-making and empower them to help with implementation.
General Manager = Hotel Profit Symphony Conductor
Commercial optimization encompasses the entire guest journey. Revenue generation is not an isolated function that some nerds will make happen for you using Microsoft Excel. It has to be backed by a great product, which is the guest experience. Every touchpoint influences both immediate revenue and long-term profitability.
This article is for any hotel owners or asset managers who are struggling today and wondering why their commercial optimization efforts are not delivering the stellar growth they were seeing in years past. The first question to ask yourself is…who is leading your hotel team?
Your GM is the conductor of your hotel profit orchestra. No matter how good the individual artists are, a conductor brings them all together into a perfect symphony. Short-term commercial success is a flash in the pan. For profits to be sustainable, there needs to be a balance among guest satisfaction, operational efficiency, and overall financial performance.
After decades in commercial optimization, I have learned this important lesson:
