I’ve been associated with the hospitality industry for almost 10 years. During this time, I’ve seen and faced many challenges.
NB: This is an article from eZee Absolute
Of those, there is one I distinctly remember. I was working as a business development manager (BDM) for a reputation management firm. As a part of my role, I was supposed to meet the key decision-makers at the hotel.
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Once I was pitching the reputation management software to the owner of a renowned hotel in a remote location. And this is what he said :
“All these software are almost the same. We took a PMS almost a year back and investing in a software to manage review is not something we need. My hotel’s staff replies to the feedback we receive. Plus, I don’t feel these reviews have much effect on our business.”
I was taken aback at the response and began to wonder how people can have such notions. In fact, when I met a few more hoteliers, I realised that they are plunged into a deep sea of misconceptions.
And it’s not just about the reviews, there are various myths in the hotel industry that create hurdles for hotels.
Talking about the commonly believed myths in the hotel industry, most of them are pertaining to technological aspects and marketing strategies. The reason could be lack of knowledge, word of mouth, or reading and understanding half-baked information from the internet.
Let’s take a look at some of the widely accepted myths in the hotel industry that need to be busted right now.
1. Myth: Technology will take away jobs
There’s no doubt that technology has made our lives easier. However, one of the common myths about technology in hotels is that it will take away hoteliers’ jobs.
For instance, many hoteliers believe that robots will replace human staff in hotels, leading to a scarcity of jobs in the hospitality industry.
Truth:-
First of all, you need to understand that technology is just a tool that makes our lives easier. Let me explain it with an example.
PMS is a tool that is helpful in effectively managing hotel operations. One of the important tasks in any property is maintaining guest records. Now, before PMS came into existence, this task was done manually.
The automation brought by PMS has made this task simpler. There are various software that can capture data just by scanning OCR code. This helped in saving a lot of time for hotel staff and they can focus more on improving guest experience. Plus it didn’t take away the jobs of the front office staff.
Similarly, by adopting various technological solutions at your property, you can make your processes easy and efficient.
2. Myth: Investing in revenue management is expensive and futile
Talking about revenue management systems (RMS) and revenue managers, it’s no doubt that they help in improving hotels’ business. However, there are certain myths about revenue management. Among them the common ones are:
- RMS or hiring revenue managers is a costly matter.
- It is only necessary for luxury and high budget hotels.
Let me tell you the reality about them.
Truth:
See, the factual reality is that revenue management is a MUST for hotels. Be it having a system, hiring a revenue manager, or both. Furthermore, revenue management not only aids in boosting a property’s bottom line but also helps in finding the loopholes.
Not to mention, there are various RMS providers with flexible pricing plans that help you go lighter on your wallet. They create customised plans as per your requirements, property size, average tariff, and other such aspects. This means that even if you are a budget property, you can invest in RMS without burning a hole in your pocket.
3. Myth: Giving maximum discount can increase bookings
I have seen many hoteliers saying that guests book properties with slashed up tariffs or ones that offer extremely low rates. That’s because of the heavy discounts given by OTAs and aggregators.
Truth:
I would say this is partially true. I mean, giving discounts is definitely a good strategy to attract guests. But the question is up to what extent?
For example, OTAs generally tend to give a discount of 50-60%. This, when clubbed with bank offers, the amount paid by the guests is slashed drastically.
Now for hotels, giving such deals and discounts is literally not possible. There are two reasons:
- It would incur a terrible loss.
- Guests will demand such discounts while booking the property again.
If you want to give discounts, I’d suggest doing it in the form of packages. That’s because when you club certain additional things like a meal plan, discount on paid services, or activities, the rates seem more valuable to guests.
Thus, when they compare direct rates and the ones on OTAs, the weightage of packages would be more. Alternatively, if you want to give discounts on bookings, you can use the commission amount or percentage of tariff which is charged by the 3rd party platforms.
4. Myth: OTAs are better than direct bookings
It’s no secret that OTA’s drive a good amount of bookings. But, this point has made many hoteliers believe guests book only from OTAs, and the scope of direct booking is negligible.
Truth:
To be honest, OTAs do drive maximum bookings. However, they act as a mediator between guests and hotels. And these days, hotels are more concerned about their relationship with guests.
So, the guests need to contact the respective OTA if they have any issues with the property. But because of this elongated communication process, the resolution of the same does take time.
Due to this, the guest experience is hampered. Hence before booking any property, travelers connect with that hotel’s reception to see if they can get better rates, upgrades, additional facilities, or for generic queries. Trust me, I also do this.
