The desire to run a successful, sustainable business is the driving force behind the actions of any hotelier or hospitality industry professional.
My job as CEO of Magnuson Hotels is to make sure that the 1,000 hotel owners that affiliate themselves with our Magnuson name make more money today than they did this time last year. To put it into perspective; that’s a combined total of around 100,000 rooms for sale every night.
In the hotel business, we’ve come to realize that there is a very slim line between simply getting by and making a profit—and it’s usually just past the 50 percent occupancy zone. While there are few ways in which we can increase the basic usage of hotels and travel, there are some fundamental and highly practical ways in which a hotelier can add another 20 percent to their net income.
What we’ve found through working with hotels over a period of many years, is that the success of a hotel’s performance relies the most on improving upon and perfecting two basic principles—increasing revenue and reducing costs. Both can be mastered through several simple and easy to implement fundamental changes.
How am I able to increase revenue?
Never underestimate the importance of simply being welcoming, professional, and pleasant. Focus on generating and retaining positive reviews on trusted and influential consumer travel websites such as TripAdvisor. Expect to see, at the very least, a 10-15 percent booking rate increase with just a change from a 50 percent to 65 percent approval rating.
In addition, offer your staff a team bonus for hitting those positive TripAdvisor scores. Go for 5 percent a month until you hit a 100 percent approval rating. Not only will this encourage your staff and colleagues to fulfill their potential, it will also create much needed momentum—which is crucial to the success of any business.