The typical GM approach centers on a “maintain” mindset, where the goal is to ensure that the hotel continues to perform at a high level and that guest satisfaction remains consistently strong.
NB: This is an article from Demand Calendar
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In this setting, change happens incrementally, with minor, steady improvements designed to support a stable operational flow rather than disrupt it.
However, maintaining this consistency and meeting performance targets without taking risks still requires a solid foundation of information. This is where business intelligence (BI) tools come into play. For a risk-averse GM, BI tools provide crucial insights to track operational performance, monitor financial stability, and respond proactively to guest feedback. By using reliable, intuitive BI systems, GMs can make informed decisions that support consistent results, helping them safeguard the hotel’s reputation and profitability throughout their tenure without needing to “reinvent the wheel.”
The Risk-Averse Nature of Hotel General Managers
Short-Term Tenure Mindset
For most hotel general managers, the reality of a 3-5 year tenure at a given property significantly shapes their approach to management. With this relatively short time frame, GMs often focus on achieving consistent results rather than implementing high-risk, transformative changes that might not show returns until after moving on. This short-term perspective leads many GMs to center their efforts on keeping operations steady, focusing on established practices that ensure the hotel meets or slightly exceeds its key performance metrics. The goal is to keep the hotel running smoothly so they can hand over a stable, well-functioning property to the next manager when they leave.
Focus on Stability
This tenure-driven mindset naturally fosters a focus on stability. General managers prioritize maintaining consistent quality, high guest satisfaction, and financial stability because these are the benchmarks by which they’re evaluated. GMs can be confident they’re fulfilling their core responsibilities by focusing on these steady-state goals. Risk-averse by nature, they often view disruptive initiatives—like major overhauls to technology systems or experimental guest programs—as potentially destabilizing, particularly if the benefits of such changes aren’t guaranteed within their tenure.
Instead, GMs make incremental improvements that align with established standards and proven approaches. They emphasize reliable operations, consistent service, and financial predictability, minimizing risks that could disrupt guest satisfaction or operational flow. This conservative approach allows them to maintain control over the guest experience and ensure a steady income for the hotel.
Accountability and Career Mobility
Hotel general managers are also acutely aware of their accountability to ownership and the impact of their tenure on their professional reputation. In the hospitality industry, reputation is a critical asset. A GM who can leave behind a stable, profitable, and smoothly operating property strengthens their career prospects. At the same time, any major disruptions or negative performance trends could have lasting effects on their standing within the industry.
With this in mind, GMs are cautious about implementing significant changes that could introduce volatility or carry the potential for visible failure. They aim to preserve the property’s standing, hand over a stable business to the next leader, and avoid reputational risks. This focus on career mobility encourages GMs to maintain continuity, knowing that it’s easier to earn a reputation for stability and consistent results than to gamble on high-risk strategies that may not pay off.
Ultimately, this combination of short tenure, emphasis on stability, and accountability creates a distinctively conservative, risk-averse mindset among hotel general managers. Their goal is to keep operations steady, uphold the hotel’s reputation, and ensure they leave behind a property in good standing when it’s time to move on.
